Non-Truck Liability (NTL) coverage can be an extremely effective tool to plug a coverage gap for truckers who lease with another motor carrier. Here’s an explanation of what NTL is and how it compares to similar truck coverages offered by other insurance companies.
Non-Trucking Liability coverage is for a customer under permanent lease to a motor carrier who provides the primary liability coverage. Progressive offers NTL to provide liability coverage for the listed vehicle for non-business, personal use. Complete the NTL Checklist to see if your customer is eligible for NTL coverage.
Bobtail coverage typically provides coverage only when the power unit is operated without an attached trailer, whether under dispatch or not. A trucker can be “bobtailing” but still be operating for the benefit of the motor carrier, such as when he or she is returning from delivering a load without a trailer, so Non-Trucking (NTL) is not a substitute for Bobtail coverage.
Deadhead coverage explicitly provides coverage only when the power unit is operated with an empty trailer, whether under dispatch or not. As above, in a situation where the trucker is returning home from a delivery with an empty trailer (“deadheading”), they can still be construed to be operating for the benefit of the motor carrier, so NTL would not substitute for having Deadhead coverage.
Unladen coverage provides coverage only when the power unit is operated either without an attached trailer, or when the trailer is empty, whether under dispatch or not. As in the examples above, if the trucker is operating on behalf of the motor carrier, such as when coming back from trip with no trailer or an empty one, NTL is not a substitute for Unladen coverage.
The Right Way to write NTL
- First, ask to read the trucker’s lease agreement (and retain a copy!). If they don’t have a lease agreement because they are not under long-term lease, do not write NTL.
- If the lease agreement specifically requires the trucker to obtain Bobtail, Deadhead, or Unladen coverage, do not sell NTL. They need coverage from an insurer that offers those products.
- If the lease agreement says the motor carrier (usually referred to as the “lessee”) is providing primary liability to the trucker (the “lessor”) while the trucker is operating for the benefit of the motor carrier, or while the trucker is under dispatch—or it doesn’t mention a limitation in the primary coverage provided—NTL is likely the right choice.
- Our NTL checklist will help you determine whether NTL is appropriate for your customer.
As you know, understanding NTL and other Commercial Auto coverage is key to successfully supporting your customers and growing your commercial book, and we’re always glad to help. If you have any questions, call us at 203-900-3353 and firstname.lastname@example.org for further info.