Bobtail Liability Insurance

Definition - What does Bobtail Liability Insurance mean?

Bobtail liability insurance is a type of vehicle liability coverage that covers a vehicle when not in use for business purposes. Simply put, it refers to a policy that covers damages involving a vehicle that has detached its trailer or has unloaded its business cargo and is driven for the purposes of mobility, like driving it home.

Insuranceopedia explains Bobtail Liability Insurance

When a truck is in an accident while being operated for business, it is going to be covered by a primary liability insurance. This is required by law for anyone in the trucking business. When it is in an accident that is not work-related, it is covered by a separate policy that's not for business. Bobtail liability insurance covers the truck when its trailer is detached or has already unloaded its cargo and is being driven for non-business purposes.

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