Bobtail Liability Insurance

What Does Bobtail Liability Insurance Mean?

Bobtail liability insurance is a type of vehicle liability coverage that applies when a vehicle is not being used for business purposes. In simple terms, it covers damages involving a vehicle that has detached its trailer or unloaded its business cargo and is being driven for personal use, such as driving it home. Truckers who own their rigs typically buy bobtail coverage as part of a broader commercial trucking insurance package, since their primary liability policy only protects them while they are dispatched under a motor carrier.

Insuranceopedia Explains Bobtail Liability Insurance

When a truck is involved in an accident while being used for business purposes, it is covered by primary liability insurance, which is legally required for those in the trucking industry. However, when the truck is in an accident that is not work-related, it is covered by a separate policy intended for non-business use. Bobtail liability insurance covers the truck when its trailer is detached or has already unloaded its cargo, and it is being driven for personal, non-business purposes. For owner-operators leased to a motor carrier, bobtail liability is usually purchased separately from the standard commercial auto insurance that covers them during dispatched runs.