Non-Trucking Liability Insurance

Wednesday, July 23, 2025

Non-Trucking Liability Insurance

Side view of an American Bobtail cat with a short tail standing in front of a semi-truck tractor with no trailer, illustrating bobtail insurance humor.

Non-trucking liability, or Non-Trucking Use (NTL/NTU), is one of the most misunderstood coverages in trucking and one of the easiest to get wrong. It’s not the same as bobtail. It’s not a backup policy for downtime. And it won’t help you if you’re in between loads unless the conditions are exactly right.

If you’re leased onto a motor carrier, NTL might fill a small but important gap in liability. But only if your lease calls for it, and only if you’re using your truck for personal reasons.

Let’s break it down.

What Is Non-Trucking Liability Insurance?

NTL provides liability protection when you’re using your truck for non-business, personal use. That might include getting it washed, grabbing groceries, or running an off-duty errand. This coverage is meant for owner-operators who are under permanent lease to a motor carrier that provides primary liability while you're under dispatch.

It helps pay for:

Bodily injury to others
Property damage to third parties
Legal defense related to a personal-use accident

What It Doesn’t Cover

This is where truckers get burned.

NTL does not cover:

Any business use, even if you’re empty
Hauling cargo
Driving under dispatch
Fueling up, returning to the terminal, or staging for your next load
Damage to your truck (you need physical damage for that)
Cargo (covered separately)
Any situation where a filing is required

If the activity benefits your motor carrier in any way, NTL does not apply.

Bobtail, Non-Trucking, Deadhead, and Unladen: What’s the Difference?

These terms get mixed up constantly. Here’s what you actually need to know:

Bobtail Coverage

Covers you when driving without a trailer, whether or not you’re under dispatch
Example: You leave a drop yard and drive to your next pickup

Non-Trucking Liability / Non-Trucking Use (NTL/NTU)

Covers personal use only, while not under dispatch
Example: Your truck is parked at home and you take it to the grocery store, pull your camper to the lake, or get an oil change

Deadhead Coverage

Covers you when you’re under dispatch but hauling no cargo
Example: You are pulling an empty trailer to a pickup

Unladen Liability

Covers you when you are operating without a load, whether bobtail or pulling an empty trailer
Example: You are returning from a drop with no freight on board, still under dispatch

If your lease says you’re responsible during deadhead, unladen, or staging, NTL is not enough. You need the right coverage for that specific situation.

Who Actually Needs NTL?

You might need NTL if all of the following are true:

You're permanently leased onto a motor carrier
The carrier provides primary liability while you're under dispatch
Your lease says you’re responsible for liability during personal use or off-duty time
You do not need a federal or state filing under your name
You are not in a trailer interchange agreement

If you are in between leases, doing driveaway, or running under your own DOT number, you need primary liability, not NTL.

Common Mistakes That Get Claims Denied:

Buying NTL when you actually need bobtail or unladen
Assuming “off dispatch” means “off the hook”
Using NTL between long-term leases
Writing NTL without reading the lease
Relying on NTL when a filing is required

Do I Need Physical Damage Too?

Yes. Most motor carriers provide liability only. They will not pay for your truck if it is wrecked, stolen, or flooded. Physical damage coverage protects your truck regardless of your dispatch status or radius. It can usually be added to your NTL policy.

If you're hauling without it, you're gambling with your business.

Buying NTL with Physical Damage Before a Lease? Stop Right There.

We’ve had a lot of calls lately from drivers who just bought a truck and want to set up non-trucking liability with physical damage while they “figure things out.”

Here’s the problem:

Non-trucking use policies are only for trucks under permanent lease. If you’re not leased on yet, you don’t qualify.

NTL is built on the assumption that your motor carrier is providing liability while you’re working. If there is no lease, there is no liability coverage, no dispatch, and no protection. You are asking the insurance company to insure a truck they legally cannot rate. And if a claim happens, they are going to ask for that lease.

Agents are required to get a copy of your lease when writing this coverage. Writing NTL without one puts you at risk of a denied claim. It could set your business up to fail before it even starts.

How Much Does NTL Cost?

NTL premiums are usually lower than standard liability because it covers a lot less. Rates depend on:

Your truck
Where you are based
Your driving history
Lease terms
How often you use the truck off the clock

Final Word

NTL is cheap, but that does not mean it is safe. This coverage is limited and built for a very specific situation. If your lease does not meet the requirements, or if you are using your truck for anything remotely business-related, NTL will not protect you.

Need help figuring out what applies to your lease or operation?
Email us at info@trucku.biz and send over a copy of your lease. We will tell you straight up if NTL is the right fit, or if you need something broader.