Bobtail Business Insurance

Insuranceopedia helps Bobtail companies review business insurance quotes from leading insurance carriers. This platform makes it easy to find specific coverage for general liability and property damage. You can also secure plans that offer protection for your employees.

Why Do Bobtail Companies Need Insurance?

Independent operators running a bobtail service need specific insurance policies to stay safe. You typically require bobtail liability insurance and non-trucking liability insurance. These forms of coverage protect you when standard motor carrier policies do not apply.

Most carrier insurance only covers you while you haul a load under their specific authority. Once you drive without a trailer or a load, that protection usually ends because you are no longer under dispatch. Bobtail insurance is essential because it secures your truck during these gaps in coverage.

What Insurance Do Bobtail Companies Need?

Running a business that involves bobtailing comes with unique risks. It does not matter if you are an owner-operator or if you manage a fleet of drivers. You must protect your team, your vehicles, and your assets. A major risk occurs when a truck is driven without a trailer or is not under dispatch. Standard policies often leave gaps here.

To keep your business safe, review the following types of business insurance policies.

Non-Trucking Liability Insurance

What it is: This coverage protects you when the truck is used for personal reasons rather than business work.

What it covers: It applies when you drive the truck for non-business purposes. This is strictly for times when you are not under dispatch.

Example: You decide to drive your truck to the grocery store or a movie theater on your day off. If you hit another car, this policy helps pay for the damages.

General Liability Insurance

What it is: This is a standard policy for almost every small business. It handles claims involving third parties.

What it covers: It pays for legal fees or medical costs if your business causes bodily injury or property damage to someone else.

Example: A client visits your office and slips on a wet floor. If they get hurt and sue you, General Liability covers their medical bills and your legal defense.

Bobtail Liability Insurance

What it is: This is the core policy for your specific industry. It fills the gap left by standard motor carrier coverage.

What it covers: It protects you when you are driving the truck for business, but do not have a trailer attached. This usually happens before or after a haul.

Example: You just dropped off a trailer and are driving the truck back to the terminal. Since you are not hauling a load, your standard carrier insurance might not apply. If you crash during this return trip, Bobtail Liability steps in.

Commercial Property Insurance

What it is: If your company owns a building or rents an office, you need commercial property insurance.

What it covers: It protects the physical structure of your building from dangers like fire, theft, or bad weather.

Example: A severe storm blows a tree onto your office roof. This causes a leak and structural damage. This insurance pays for the necessary repairs to the building.

Workers’ Compensation Insurance

What it is: This insurance protects your staff if they get hurt on the job.

What it covers: It pays for medical care, rehab costs, and lost wages. Most states require this by law if you hire employees.

Example: A driver jumps down from a cab and breaks an ankle. Workers’ compensation pays for their hospital visit and covers part of their paycheck while they heal.

Hired And Non-Owned Auto (HNOA) Insurance

What it is: This covers liability for vehicles your business uses but does not own.

What it covers: It protects the business if an employee causes a crash while driving a personal car or a rented vehicle for work tasks.

Example: You ask an office assistant to drive their own car to the bank to make a deposit. On the way, they rear-end another vehicle. HNOA covers the liability costs for your business.

Business Owner’s Policy (BOP)

What it is: A BOP is a package deal. It combines General Liability and Commercial Property insurance into one plan.

What it covers: It provides protection for both your business assets and liability risks, usually at a discounted rate.

Example: A vandal breaks a window at your office and steals equipment. A BOP covers the cost to fix the window and replace the stolen items.

Umbrella Insurance

What it is: This provides extra limits on top of your other liability policies.

What it covers: It pays the difference when a claim costs more than your standard policy limit.

Example: Your truck causes a major accident while bobtailing, and the court awards the victim $1.5 million. If your Bobtail Liability limit is only $1 million, Umbrella Insurance covers the remaining $500,000.

Business Personal Property (BPP) Insurance

What it is: This covers the movable items inside your business location.

What it covers: It pays to repair or replace things like furniture, electronics, and tools if they are damaged or stolen.

Example: A pipe bursts in your office and ruins three computers and a desk. BPP pays to replace this equipment so you can get back to work.

Cyber Liability Insurance

What it is: This policy protects you against digital threats and data breaches.

What it covers: It handles the costs of notifying clients, legal fees, and credit monitoring if you lose sensitive data.

Example: A hacker gets into your billing system and steals the credit card numbers of your clients. Cyber Liability pays for the investigation and helps you manage the crisis.

Cheapest Bobtail Company Commercial Auto Insurance

Progressive typically offers the cheapest Commercial Auto options for bobtail operators, with average annual costs around $1,942.

Note: Estimates are based on 2024-2025 market rates for Physical Damage coverage (Collision and Comprehensive) for a leased Class 8 vehicle with a value of approx. $65,000. Actual premiums vary based on truck value, garaging location, and deductible choice.

Cheapest Bobtail Company General Liability Insurance

biBERK is currently the cheapest General Liability coverage for truck drivers, averaging approximately $468 annually.

Note: Estimates are based on a standard General Liability policy (limits of $1M per occurrence / $2M aggregate) for a simplified trucking operation without a physical terminal. Actual premiums will vary based on state and gross revenue.

Cheapest Bobtail Company Business Owner’s Policy

Hiscox is frequently the most affordable option for a trucking-specific Business Owners Policy, with average annual premiums around $1,127.

Note: Estimates are based on a basic BOP package combining General Liability with Business Personal Property coverage (e.g., for tools, laptops, and miscellaneous equipment inside the cab).  Actual premiums will vary based on property values and business credit history.

How Much Does Bobtail Company Business Insurance Cost?

A typical bobtail business pays around $61 per month for general liability insurance. However, your specific rate depends on the truck you own. Insurers look at the make, model, and total market value of the vehicle.

Where you operate also changes the price. You will likely see higher premiums if you drive in areas with bad roads or heavy traffic. Your personal driving history is another major factor. A record of accidents or traffic violations will increase your costs. Insurers also review how often you drive and how you use the truck.

The total cost of business insurance also depends on your coverage limits and whether you bundle policies. It is smart to look beyond the cheapest price tag. You need a plan that actually covers the specific risks your business faces.

Note: Estimates are based on 2024-2025 market averages for a leased owner-operator trucking business with a standard Class 8 vehicle and a clean driving record. “Commercial Auto” figures reflect Physical Damage coverage (Collision/Comprehensive), as Bobtail operators typically receive Primary Liability through their motor carrier. “Workers Comp” estimates reflect rates for Occupational Accident plans common to owner-operators. Actual premiums will vary significantly based on state, driving history, cargo type, and coverage limits.

How Is Your Bobtail Company Insurance Cost Calculated?

Underwriters look at several details to decide your premium. One of the main factors is your specific truck. If you drive a newer model with a high market value, your insurance will likely cost more. This is because expensive trucks cost more to repair or replace.

Your personal driving record is also very important. Drivers with a clean history often pay less. On the other hand, past accidents or violations can make your rates go up. The location of your business matters too. If you operate in an area with heavy traffic or poor road conditions, you might see higher prices.

Insurers also review your history of filing claims. Frequent past claims can mark you as a high-risk driver. Finally, they look at your business structure. Rates can differ depending on whether you are a sole proprietor or an LLC. Even your choice to own or lease the vehicle affects the final price.

Following these steps helps ensure you’re properly insured and set up to handle risks confidently and professionally.