For a full commentary surrounding the current confusion on this subject please go to: expeditersonline.com/trucking-blogs/risky-business
For a full commentary surrounding the current confusion on this subject please go to: expeditersonline.com/trucking-blogs/risky-business
Auto Liability insurance pays out when you hit someone or something with your vehicle.
Here are a few examples of what a General Liability policy covers:
- Customers slipping and falling on your premises
- An erroneous delivery of products resulting in damage
- Damages or fire caused by your actions at a rented location (i.e. motel)
- Libel and slander
- Using someone else’s logo in advertising without permission
Even if you purchase “Primary and Non-Contributory” on your General Liability policy, it will not replace or add to your coverage for Auto Liability.
So what does the “Non-Contributory” mean on a General Liability policy?
Example: An Owner Op accidentally starts a fire in his motel room. The Motor Carrier he’s hauling for will not get drawn into a lawsuit when the Owner Op has added “Non-Contributory” to his General Liability policy. The Motor Carrier won’t be asked to “Contribute” to paying the claim.
What the Motor Carrier or Broker NEEDS to be worried about is when the Owner Op doesn’t have “Non-Contributory” on his AUTO policy.
Most insurance companies will provide “Primary” but NOT “Non-Contributory” on an auto policy, which pretty much guarantees they’ll look for other coverage to “Contribute” to paying the claim.
And this is where the Motor Carrier or Broker comes into the picture for major accidents when Owner Operators provide their own insurance.
