The Insurance Zone – Owner Operator's Primary Liability vs Non-Truck Liability?

I thought I’d take a minute to make sure everyone understands what their Expediting Liability Insurance pays…and doesn’t pay. So you’re driving along and you hit someone or something… who gets the bill?

If you’re leased on to a Motor Carrier with a traditional contract, then the PRIMARY Insurance policy of that Motor Carrier pays the claim. But if you were “not under dispatch or not under the direction or benefit of the Motor Carrier”, then your own Non-truck Liability (NTL) policy pays.
I thought I’d take a minute to make sure everyone understands what their Expediting Liability Insurance pays…and doesn’t pay. So you’re driving along and you hit someone or something… who gets the bill?

If you’re leased on to a Motor Carrier with a traditional contract, then the PRIMARY Insurance policy of that Motor Carrier pays the claim. But if you were “not under dispatch or not under the direction or benefit of the Motor Carrier”, then your own Non-truck Liability (NTL) policy pays.

If you’re under the new structure, the Owner Operator, YOU, has his own PRIMARY Liability, and you’re covered 24/7, it works just like Physical Damage (Comp & Collision), 24/7. You may also carry a Cargo policy, which also covers you 24/7.

…This is very important: even IF you carry Cargo Insurance, a Non-Truck Liability policy will NOT pay if you were hauling anything for hire. It is 2 separate types of coverage, NTL pays only Non-Trucking activities.

It’s important to make sure you understand the Primary versus Non-truck Liability concepts so you’re fully protected. Review your coverage, and make sure your agent understands these concepts by clearly defining on your Certs either “Primary” or “NTL” on your cert… and not simply… “Liability”.