Non-trucking liability insurance
If your truck is leased to a carrier, non-trucking liability insurance covers you when you take the truck out on your own time, since the carrier's insurance only covers you on the job. Non-trucking liability insurance fills that gap. Many motor carriers ask for it, and it won't pay for accidents while you're under dispatch.
- Who it's for: owner-operators with a permanent lease to a motor carrier
- What it pays for: harm to others and their property while you're on personal trips
- What it leaves out: accidents while under dispatch, plus damage to your own truck
- What it costs: varies by business type, truck, driving record, and location
How does NTL work with a leased truck?
When your truck is leased to a motor carrier, personal driving falls outside the carrier's insurance. Non-trucking liability can cover claims from personal use of the truck, but being off dispatch alone doesn't mean a trip is covered.
A motor carrier is a trucking company with federal authority to move freight. While the lease runs, the carrier holds full responsibility for how the truck is operated.
The lease also has to name who handles any other coverage on the truck, like bobtail insurance.
What does NTL insurance cover?
If you have a crash while using the truck for personal reasons, your NTL policy can pay for injuries to others or damage to their belongings. It breaks into three parts:
- Bodily injury: covers medical costs when someone gets hurt in a crash.
- Property damage: covers fixing or replacing someone else's vehicle or things.
- Legal costs: covers lawyer fees and court expenses that follow a claim.
It can also help you satisfy the insurance conditions in your lease.
What does NTL coverage leave out?
NTL doesn't cover accidents while you're under dispatch. In that case the carrier's insurance is the one that applies.
A non-trucking liability policy doesn't always come with two other coverages, so check your policy to find out if they're there:
- Bobtail insurance applies when you drive the truck with no trailer attached.
- Deadhead insurance applies when you pull a trailer that's empty.
Your own truck isn't covered either. Physical damage insurance handles repairs after collisions, theft, and natural disasters, with no radius restrictions.
Rules also restrict who qualifies for NTL. You can't get it while you're actively behind the wheel for another company.
How much does non-trucking liability insurance cost?
Prices depend on your truck, your driving record, where you live and the kind of business you run, so the only way to know is to ask an agent for a quote. Hotshot Insure doesn't sell insurance, but the phone line reaches an independent agent who writes trucks.
When the carrier passes any of this insurance cost on to you, the lease has to show the amount being charged back to you.
Federal minimums the carrier must carry
While you're working under the carrier's authority, it's the carrier's public liability policy that responds. Federal minimums look like this:
| Type of carrier operation | Minimum coverage required |
|---|---|
| For-hire property carrier whose vehicles all weigh less than 10,001 lbs | $300,000 |
| For-hire carrier hauling non-hazardous property across state lines with a vehicle weighing 10,001 lbs or more | $750,000 |
| For-hire carrier hauling placarded hazmat, oil or hazardous waste in a vehicle of 10,001 lbs or more | $1,000,000 |
| For-hire or private carrier moving explosives, poison gas, radioactive materials, or hazardous substances in bulk tanks | $5,000,000 |
References: 49 CFR 387.9 and 49 CFR 387.303, plus guidance from FMCSA.
Getting coverage through your carrier
Your lease must make clear that buying or renting products, equipment, or services from the carrier can't be a condition of the lease.
When you do get insurance from or through the carrier, they're required to hand over a copy of each policy on request. The certificate of insurance needs to list:
- The name of the insurer
- The number of the policy
- The dates the policy takes effect
- What you pay for each kind of coverage
- The deductible for every kind of coverage
These requirements come from 49 CFR 376.12.
Frequently asked questions
Am I required to buy NTL from my carrier?
No. Your lease must say you're not obligated to purchase products or services from the carrier. That said, your carrier can still make NTL a requirement.
Sources
Related
Get your rig priced by an agent
Hotshot Insure does not sell insurance. An independent agent who places hotshot and small truck policies prices your rig by phone, or you can send your details.