Non-trucking liability might be confusing to many owner-operators (and some brokers/shippers).As the name (non-trucking) indicates, this coverage is for an owner operator’s auto liability while operating the unit not under dispatch. This coverage is not intended to cover any for- hire trucking operation while transporting goods or commodities.
Owner operators that are not under dispatch, still need liability coverage for themselves and their unit. They might take the truck to be serviced or cleaned or to fuel up before a busy week ahead. These trips would all be covered under non-trucking liability in the event of an accident. Typically owner operators do not have their own motor carrier authority and will transport for hire under the carrier they lease to. The carrier whose motor carrier authority is used to transport for hire should maintain primary liability and cargo coverage for all leased units. There should be written lease agreements outlining the terms and coverage requirements.
Non- trucking liability is indicative of NOT FOR HIRE operations. Any income generating use of the unit would NOT be non-trucking operations. Physical damage for the truck/tractor may be combined with non-trucking liability to package the policy and allow for better rates. In addition to the bodily injury and property damage liability coverage, uninsured/underinsured motorists coverage and medical payments may all be included in a non-trucking liability policy.
Non-trucking liability normally costs much less than primary liability. The exposure for non-trucking operators compared to trucking for hire is considerably less in most cases.