Bobtail insurance and non-trucking liability: what each one covers
Bobtail insurance is liability coverage for a leased owner-operator's truck when the motor carrier's policy does not apply, typically when the tractor runs without a trailer. Non-trucking liability (NTL) is a close cousin that covers personal, non-business use. Insurers define the two differently, so the policy wording, not the name on the quote, tells you when you are covered.
Contents
The short version
- Both are mainly for owner-operators leased onto a motor carrier, whose primary liability covers you while you work for it.
- Progressive ties bobtail to driving without a trailer for a business purpose; HUB ties it to driving without a trailer and not under dispatch. Same word, different trigger.
- "Unladen liability" is a third, broader form: no cargo, with or without an empty trailer.
- Your lease must say who provides bobtail cover and the exact charge-back if the carrier supplies it (49 CFR 376.12(j)(1)).
- None of these pays to repair your own truck or covers your injuries.
What is bobtail insurance?
"Bobtailing" means driving a tractor with no trailer attached. Bobtail insurance is the liability policy that protects other people if you injure them or damage their property during those trips. It belongs to the world of leased owner-operators: when you run under a motor carrier's authority, the carrier is responsible for the operation of your truck for the duration of the lease, and its policy is the primary liability cover while you are working for it. The open question is what happens the rest of the time.
That is where definitions start to split. Three published descriptions show how wide the gap is:
| Source | Bobtail, as described | Non-trucking liability, as described |
|---|---|---|
| Progressive Commercial (insurer) | Protects your truck "when it's being driven without a trailer for a business purpose" | For owner-operators under a permanent lease, when the truck is used "for non-business purposes, like going to the movies or running to the grocery store" |
| HUB International (broker) | "Applies when a tractor operates without a trailer and not under dispatch" | "Covers personal use of the tractor outside the scope of the leasing agreement" |
| Transport Topics opinion column (2013) | "True bobtail" covers the contractor whenever the truck runs without a trailer attached | "Non-trucking use" policies cover only when the contractor "is not operating for business use" |
Read side by side, Progressive's bobtail covers business trips and HUB's covers trips off dispatch. A trip home after a delivery, with no trailer and no load assigned, could fall on either side depending on which wording your policy uses. The Progressive non-trucking liability page also warns that bobtail and deadhead coverages "are not always part of non-trucking liability policies", and the HUB owner-operator insurance overview lists bobtail and NTL as two separate pieces of off-dispatch cover.
Bobtail vs non-trucking liability: what decides which one pays
The practical difference is the test each policy uses.
- Trailer test (bobtail): the policy asks whether a trailer was attached. Some versions add a second condition, such as "for a business purpose" or "not under dispatch".
- Purpose test (NTL): the policy asks whether you were using the truck for business. A 2013 Transport Topics column by an insurance agent and a trucking attorney notes that each NTL policy defines "business use" with its own wording, which "can differ significantly from policy to policy", and that the carrier's operating agreement can broaden what counts as business.
The same column says most coverage fights happen between the motor carrier's liability insurer and the non-trucking insurer, each arguing the trip belonged to the other, and that disagreements are rare with true bobtail or unladen forms. That is one author view from 2013, not a study, but it explains why the wording deserves attention before you need it.
Unladen liability insurance
"Unladen liability" is a name some insurers and agents use for a broader form. In the Transport Topics description, a true unladen policy covers incidents whenever the contractor operates the power unit without cargo, whether no trailer is attached or an empty one is. Because the test is "no cargo" rather than "no trailer" or "no business", it can include deadhead runs that a strict bobtail or NTL policy might leave out. Whether a given policy sold as "unladen" actually works this way is, again, a question for its wording.
Deadhead and other gray zones
Worked through as examples (not legal conclusions), here is how the tests can split common trips. The answer in your case depends on your policy, your lease and the facts of the trip.
| Example trip | Trailer test | Purpose test | Unladen ("no cargo") test |
|---|---|---|---|
| Driving the tractor alone to the grocery store on a day off | Meets it | Meets it (personal use) | Meets it |
| Driving the tractor alone to pick up a loaded trailer for the carrier | Meets it, unless the form requires "not under dispatch" | Probably fails (business use) | Meets it |
| Pulling an empty trailer to the next shipper (deadhead) | Fails (trailer attached) | Probably fails (business use) | Meets it |
| Taking the truck to a wash the lease requires | Depends on the trailer | Unclear: the lease may make it business use | Meets it if empty |
Where a trip fails the off-dispatch policy, the carrier's primary liability is supposed to respond. The goal is to leave no trip that both policies can reject.
Who needs bobtail or non-trucking liability?
These coverages are built for owner-operators who are leased onto a motor carrier. If you hold your own operating authority, the truck is insured on your own primary policy instead: Progressive notes that owner-operators with their own USDOT authority "take on full responsibility for accidents, violations, and cargo claims". That primary cover and its federal minimums are explained on our trucking liability insurance page. Ask your agent how personal use of the truck is handled on that policy rather than assuming.
What your lease must say: 49 CFR 376.12(j)(1)
The federal truth-in-leasing rule is the one place where bobtail insurance appears in regulation. Under 49 CFR 376.12, paragraph (j)(1), the lease must:
- state the carrier's legal obligation to maintain insurance for the protection of the public under FMCSA rules;
- specify who is responsible for providing any other insurance for the operation of the leased equipment, "such as bobtail insurance";
- if the carrier will charge the cost of any of this insurance back to you, state the amount that will be charged back.
Two other paragraphs back this up. Paragraph (h) requires the lease to list every item the carrier may pay up front and later deduct from your pay, with how each amount is computed. Paragraph (j)(2) says that if you buy insurance through the carrier, it must give you a copy of each policy on request and a certificate showing the insurer, policy number, effective dates, amounts and types of coverage, your cost for each, and your deductible.
Charge-backs: how to compare the carrier's price with your own
The rule expects that a carrier may supply this insurance and deduct the cost from your settlements. That can be convenient, and the Transport Topics column even suggests that placing the carrier's liability and your off-dispatch policy with the same insurer can reduce disputes. It is still worth comparing:
- Find the charge-back amount in the lease. If you can't find it, ask for it in writing: the rule requires it to be specified.
- Ask for the certificate. Note the insurer, limits, deductible and whether the form is bobtail, NTL or unladen.
- Get an outside quote for the same form and limit. Comparing an NTL quote with a carrier's unladen program is not like for like. Our page on truck insurance quotes lists what to send.
- Ask whether the carrier's program is optional. Under 376.12(i), you are not required to purchase or rent products, equipment or services from the carrier as a condition of entering into the lease.
What bobtail insurance does not cover
Bobtail, NTL and unladen policies are liability cover: they pay for harm you cause to others. They leave three gaps that leased owner-operators often discover too late:
- Your own truck. Progressive points out that many motor carriers that provide primary liability for owner-operators don't include physical damage on the truck, and that "this gap still exists, even if you get non-trucking liability insurance." See semi truck physical damage insurance.
- Your own injuries. As an independent contractor you are usually outside workers' compensation; occupational accident insurance is the usual answer.
- Cargo. By definition these trips carry no load; cargo claims sit with the carrier or with a motor truck cargo policy.
How much does bobtail insurance cost?
We did not find a published price for bobtail or non-trucking liability from a government source or from the insurers we checked, so we don't print one. Any monthly figure you read online is a quote or an estimate from a seller.
What we can say is which factors insurers use. Progressive lists these for truck insurance generally: whether you run under your own authority or leased, the coverage limit, cargo, operating radius, truck type and age, driving history and location. For an off-dispatch policy, the type of form also matters: a broader unladen form covers more trips than a narrow NTL form, and the price will reflect that. The semi truck insurance cost page explains each factor in more detail.
IRS Publication 334 says that if you use a vehicle partly for personal use, you deduct only the part of the insurance premium that applies to business use. A policy sold for personal, off-dispatch use raises exactly that question, so ask your tax preparer how to treat it.
Questions to ask before you buy
- Is this form bobtail, non-trucking liability or unladen, and what is the exact trigger: no trailer, no dispatch, no business use or no cargo?
- Does it cover deadhead with an empty trailer?
- How does it define "business use", and does my lease define it more broadly?
- What limit does my lease require, and does the policy meet it?
- Is it the same insurer as the carrier's liability policy?
- What happens to the policy if the lease ends or I change carriers?
If you are still working out which policies apply to your setup, the coverage planner on our home page sorts them by situation, and the trucking insurance coverage guide shows where bobtail sits among all the lines.
Sources
- 49 CFR 376.12, Lease requirements, eCFR, consulted October 20, 2026.
- Non-trucking liability insurance, Progressive Commercial, consulted October 20, 2026.
- Owner-operator truck insurance, HUB International, consulted October 20, 2026.
- Opinion: Liability Coverage: Bobtail Policies, Transport Topics, September 2, 2013, consulted October 20, 2026.
FAQ
Is bobtail insurance required by federal law?
We found no federal rule that makes an owner-operator buy bobtail insurance by name. The federal leasing rule, 49 CFR 376.12(j)(1), only requires the lease to say who is responsible for insurance such as bobtail, and how much the carrier will charge back if it supplies it. In practice, the requirement usually comes from the lease or the motor carrier, so read your agreement.
Does non-trucking liability cover deadheading?
Not always. Progressive says that although bobtail and deadhead coverages are types of liability insurance, they are not always part of non-trucking liability policies. Running with an empty trailer to your next pickup is usually a business trip, so a policy built around personal use may not respond. Ask the agent to answer in writing.
What happens to my bobtail or NTL policy when my lease ends?
Non-trucking liability is sold for owner-operators who work under a lease with a motor carrier, so it is written around that relationship. When the lease ends, the carrier's responsibility for the truck ends with it (the lease runs "for the duration of the lease" under 376.12(c)(1)). Tell your agent before you switch carriers or apply for your own authority; to haul for hire on your own you need primary liability on file with FMCSA. See new authority truck insurance.
Can I buy bobtail insurance for just a few weeks?
Some insurers sell short-term or temporary truck policies, but we found no standard published terms for temporary bobtail cover. Availability depends on the insurer and the state. Our page on short-term truck insurance explains the practical limits.
Related
- Leased onOwner operator insurance requirements on a lease: what 49 CFR 376.12 puts on the carrier, what you still buy, charge-backs and questions to ask first.
- LiabilityTrucking liability insurance explained for one truck: what primary liability pays, the $750,000 federal minimum, CSL vs split limits, MCS-90 and excess.
- Occupational accidentOccupational accident insurance for owner-operators: what it pays, how it differs from workers' compensation, what a lease must disclose and what to check.
Updated October 20, 2026