WEDNESDAY, OCTOBER 28, 2020
Non-trucking liability insurance is a type of coverage you may add to your commercial trucking insurance policy. This type of coverage fills in gaps left by a normal trucking insurance policy’s liability.
Primarily, non-trucking liability insurance covers the vehicle when it is not being used for work purposes. Most trucking insurance policies will not cover personal use without this additional coverage. Since trucking insurance is a type of commercial policy, it is designed only to cover commercial purposes.
For example, say one of your drivers is on their way back from delivering products. Their straight drive back home from their drop off would be covered under a normal trucking insurance policy, as it is still a work purpose. However, insurance may become complicated if a driver makes stops along the way unrelated to work or takes a winding way back home instead of a normal route. In these cases, a normal trucking insurance policy may not cover them.
What Does Non-Trucking Liability Cover?
Non-trucking liability insurance covers bodily injury and property damage a trucker may cause while operating the insured vehicle for personal use. This can provide compensation for medical bills someone else may suffer, property damage and protect the trucker against a possible lawsuit because of the accident. This is especially important, as it can protect the business the trucker is working for from a lawsuit in case they are using a work truck for personal purposes.
Is Non-Trucking Liability Insurance Required?
Although not required by state or federal law, non-trucking liability insurance is often required by a motor carrier. If the owner/operator of the truck has signed a lease agreement with the motor carrier, that carrier may require the owner/operator to carry this type of insurance. This is to protect the carrier in turn, in case a trucker causes an accident using one of their supplied vehicles.
Is Non-Trucking Liability insurance Expensive?
On its own, non-trucking liability insurance is relatively inexpensive. Even when added to a commercial trucking insurance policy, you may not see a high rise in your rates. This is because the window between personal use and work use can be small and quick, meaning there is less risk of this insurance being used. However, it is still important that your trucks operate as required. Even without the requirement, non-trucking liability insurance is crucial to fully cover your truck, drivers and others on the road.
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