Commercial trucking liability insurance is notoriously complex. For owner-operators leased onto a motor carrier, navigating the alphabet soup of coverage options can feel like driving through dense fog.

Two terms that cause the most confusion are Trucking Liability (often called Primary Liability) and Non-Trucking Liability (frequently referred to as Bobtail Coverage).

Understanding the difference isn’t just insurance jargon—it’s vital to ensuring you aren’t exposed to massive financial risks if an accident occurs. The main difference comes down to one simple question: Are you driving under dispatch, or are you off-duty?

Here is a breakdown of the differences between these essential forms of truckers insurance.

The Heavy Lifter: Primary Trucking Liability

Primary Trucking Liability is the core of commercial trucking insurance. It is the mandatory coverage required by the FMCSA (Federal Motor Carrier Safety Administration) for any rig hauling goods for hire.

This insurance covers injuries or damage to other people or property if you are at fault in an accident while you are working.

When does trucking liability apply?

Primary Trucking Liability is active whether you are “under dispatch” or not. Under dispatch includes:

• Dispatched/Driving to pick up a load.
• Actively hauling a load from point A to point B.
• Driving empty (deadheading) on your way to a new load, under orders from your carrier.

If you are leased to a motor carrier, they typically provide trucking liability coverage for you while you are operating under their authority. The policy covering the motor carriers truckers liability will send the requested federal filings, proving to the government that the truck is legally insured to operate on public roads for commerce.

If an owner-operator trucker is not leased to a motor carrier, they can buy their own trucking liability policy. As the “named insured,” the policy covers the truck whether it’s on-dispatch or off-duty. Truck drivers must remain informed about the federal and state filings required to maintain compliance. It is essential to recognize that operating across multiple states or transporting specific types of cargo may impact the filing requirements necessary to adhere to FMCSA or state regulations.

Filling the Gap: Non-Trucking Liability (NTL)

Truck drivers don’t just drive for work. Sometimes you need to take your rig to get washed on a Saturday, drive it home for the weekend, or use it for personal transportation when you are completely off the clock.

If you are driving your truck for purely personal reasons and are not under dispatch, the motor carrier’s Primary Trucking Liability policy generally will not cover you.

This is where Non-Trucking Liability (NTL) steps in. NTL provides liability coverage for property damage or bodily injury you cause to others when you are using the truck for non-business, personal purposes.

When does Non-Trucking Liability apply?

NTL applies when you are “off-duty.” For example:

• Driving the tractor home after dropping your last load and clocking out.
• Using the truck to run personal errands on your day off.
• Driving the truck to a mechanic for maintenance that isn’t immediately related to a current dispatch.

Clearing Up the Confusion: Bobtail Coverage vs. NTL

In the trucking industry, you will often hear Non-Trucking Liability referred to interchangeably as “bobtail coverage” or “bobtail liability.”

While they are often used to mean the same thing, there is a technical difference:

• Bobtail Liability technically covers you when you are driving the tractor without a trailer attached, regardless of whether it’s for business or personal use (though many policies exclude business use).
• Non-Trucking Liability covers personal use whether you have a trailer attached or not.

Because NTL is broader and offers better protection for personal use, most modern “bobtail” policies are actually Non-Trucking Liability policies. However, it is crucial to read the fine print of your specific bobtail coverage to ensure it covers personal use with a trailer attached.

The Crucial Note on Cargo Coverage

Finally, there is one vital distinction regarding the goods you haul.

Cargo coverage—insurance that protects the value of the freight you are hauling against theft, fire, or collision damage—can only be added to a Primary Trucking Liability policy.

You cannot add cargo coverage to a Non-Trucking Liability or bobtail policy.

This makes sense because if you are using NTL, you are by definition using the truck for personal reasons and shouldn’t be hauling commercial freight. If you are hauling cargo, you are working, and the Primary Liability (and its attached cargo policy) should be active.

Summary: Stay Covered on Every Mile

Whether you are an independent owner-operator or leased to a fleet, knowing which insurance policy is active at any given moment is critical.

• On Dispatch (Business): You rely on Primary Trucking Liability (and associated federal filings).
• Off-Duty (Personal): You rely on Non-Trucking Liability (or bobtail liability) and may require federal filing.

Don’t get caught in the gap between policies. If you have questions about your current coverage or need quotes on reliable truckers insurance, contact our agents today to ensure you are protected, mile after mile.

Contact AlphaSure Affordable Insurance Services for free trucking liability insurance quote. We have offices in Laredo and San Antonio, TX and have served the Great State of Texas since 2001.

3740 Colony Dr Suite 280 San Antonio, TX 78230 Office: (210) 888-1750 Email: service@stxinsure.com

201 W Del Mar Blvd Suite 20 Laredo, TX 78041 Office: (956) 729-9500

Learn more about trucking liability insurance filing requirements on the FMCSA website.

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