Non Trucking Liability
Non Trucking Liability (NTL) coverage can be a very effective tool to plug a coverage gap for truckers who lease with another motor carrier.
Next, we will explain what LNT is and compare it with other similar truck coverages offered by different insurance companies.
Non trucking liability coverage is for a customer on a permanent lease basis to a motor carrier who provides 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 may be bobtailing but still operating for the benefit of the motor carrier, such as when he or she is returning from delivering a load without a trailer. So, NonTrucking (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. Just like in the previous case, when the trucker is returning home from delivery with an empty trailer (“deadheading”), he can still be construed to be operating for the benefit of the motor carrier. Therefore, the NTL would not be a substitute for 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. Same as previous examples, if the trucker is operating on behalf of the motor carrier, the 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 a 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.
- Suppose the lease agreement says the motor carrier (lessee) provides primary liability to the trucker (lessor) while the trucker is operating for the benefit of the motor carrier, or while it is under dispatch, or it doesn’t mention it a limitation in the primary coverage provided. In that case, 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, please do not hesitate to contact us at 203-900-3353 or email@example.com for further information!