Question: I’m a new owner-operator and recently leased to a motor carrier. They told me that they supply the Primary Liability and Cargo insurance whenever I’m hauling a load for them. My lease agreement says I need Bobtail. What’s the purpose of this coverage and do I really need it?

Answer: Bobtail Liability is protection for leased owner-operators that provides coverage while your truck is being operated without a trailer attached, whether dispatched or not. This coverage is not required by law since your motor carrier is legally responsible for maintaining liability protection for the public for all of their owned and/or operated equipment. Leasing regulations require the motor carrier to specify within the contract who is responsible for providing any other insurance coverage (such as Bobtail, Non-trucking, or Unladen Liability) for the operation of the leased equipment. Because the lease that you signed stipulates that you agree to carry Bobtail Liability, you’ll need this coverage in order to fulfill your contractual obligation to the motor carrier.

Question: I’ve been ill, so my truck is currently parked. I have a physical damage policy on the truck through OOIDA, but money is tight since I’ve been unable to work. Do I have to keep this coverage, or can I cancel it since the truck is not moving?

Answer: Physical Damage coverage is not legally required, and you may cancel it at any time by notifying an agent. However, if you have a lienholder on your truck, they’ll probably require you to continue the coverage in order to protect their financial interests. Although the truck is currently parked, the possibility of theft, vandalism, or exposure to other damage, such as fire, wind, or hail, still exists, so you may want to keep the coverage in order to protect your own interests as well. If you’re having trouble paying the premium on time, call our billing department…they may be able to assist you with special payment arrangements while you’re ill.

Question: I have a Non-trucking Liability policy through OOIDA’s truck insurance department. Recently I’ve had a few situations where I’m not sure I’ve got the right coverage. If I deliver a load to a terminal in a small town near Chicago, and then drive on into Chicago to pick up a load there, will my NTL cover me for the distance between those two loads?

Answer: The answer to your question is NO! Non-trucking Liability is a limited coverage that provides protection for leased owner-operators only while the truck is being operated for personal convenience, and only after you have reached your principle place of garaging before leaving again. NTL does not protect you in situations such as the one you’ve described, or while driving to and from work, or to the repair shop. If your motor carrier dispatched you to Chicago to pick up a load, their liability should provide coverage for you. However, it would be to your advantage to make sure they are actually "dispatching" you to Chicago, and not just advising you that there’s a load there if you choose to take it. Some motor carriers have attempted to deny responsibility for claims that occur during these situations. If you’re pulling your own trailer, either make sure your carrier is actually dispatching you for the load, or talk to your truck insurance agent about an Unladen Liability policy.

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