The explanation of Bobtail Liability, Unladen Liablity and Non Trucking Liability Coverage
Different types of liability coverage are also gives a different type of protection. The independent drivers/owners of a commercial truck need to understand the various advantages and differences of each type of insurance in relation to the election of coverage that suits them best. Besides the primary liability there are also Bobtail Liability, Non Trucking Liability and Unladen Liability. Bobtail Liability, Unladen Liability and Non-Trucking Liability coverage serve as an additional insured on the type of trucks you have.
“Deadheading” and “bobtailing” is the type of words used to describe truck used without a trailer. This type of insurance is commonly used by trucking companies, motor carriers, and independent drivers / owners to protect the trucks (with no trailer attached to it) and used not for commercial purposes. As we know, the primary liability coverage only works when your trucks are used for business purposes, if used other than it (washing your truck, on your trip back after delivering goods, etc) then the primary liability coverage is not working anymore. For example, this type of insurance would cover you if you deliver a load to a terminal and then drive into another town to pick up a different load there. As noted before, this coverage is excluded if you are pulling a trailer.
Non Trucking Liability Coverage is designed to protect your truck from accidents that may occur when you use it for any activity that does not generate a profit. This type of insurance can be useful both for trucking companies and/or independent owners and drivers. Some activities that can be categorized into Non Trucking Liability coverage are when you returned to your garage, take your family for a leisure ride in your truck, etc. Usually Non Trucking Liability is used interchangeably with Bobtail Liability even though they are not the same. Indeed at first glance almost the same the functionality and usefulness of both types of insurance, but the unique thing that distinguishes is “the use of an additional trailer” on your trucks.
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Unladen liability is a newer type of insurance that combines functions of both Bobtail Liability and Non Trucking Liability coverage. The flexibility to cover claims that may occur, whether you have been dispatched or not by your carrier as well as if you have or have not trailer attached to it, makes this type of insurance is increasingly popular lately.
When your work with motor carriers, under their contracts you are required to have some additional types of insurance in addition your primary liability coverage. It is the responsibility of motor carrier to provide liability protection for public. Bobtail Liability, Unladen Liability and Non Trucking Liability coverage are ways to reduce their burden for the degree of liability that they are responsible for. There are pros and cons to each of the coverage models which vary depending on the risk tolerance and the operations of the motor carrier and owner operator. Deciding on the right program can be critical to managing your risk.