What Is Non-Trucking Liability Insurance?
Non-trucking liability (NTL) covers your truck when you're not under dispatch—driving home, running errands, or between loads. If you're leased to a carrier, this coverage fills the gap when their insurance doesn't apply.
Last updated: December 2025 | NTL coverage guide
NTL Quick Facts
When Carrier Insurance Doesn't Cover You
If you're an owner-operator leased to a motor carrier, the carrier provides liability insurance while you're under dispatch. But that coverage has a significant gap:
- Driving home after a delivery: Not covered by carrier
- Personal errands in your truck: Not covered
- Deadheading to pick up a load: Usually not covered
- Waiting between loads: Coverage is unclear
- Driving on days off: Not covered
In these situations, if you cause an accident, you're personally liable for all damages—potentially hundreds of thousands of dollars. NTL fills this gap.
NTL vs. Bobtail vs. Primary Liability
| Coverage Type | When It Applies | Trailer? | Cost |
|---|---|---|---|
| Carrier's Insurance | Only when under dispatch | Yes | Included in lease |
| Non-Trucking Liability | When NOT under dispatch | With or without | $500-$1,500/yr |
| Bobtail Insurance | Without trailer only | Without only | $400-$1,200/yr |
| Primary Liability | All the time | Yes | $4,000-$8,000/yr |
Who Needs Non-Trucking Liability?
NTL is specifically designed for owner-operators who:
- Are leased to a motor carrier under a lease agreement
- Operate under the carrier's authority (not their own)
- Use their truck for personal purposes when not dispatched
- Drive home or run errands in their truck
If You Have Your Own Authority
Owner-operators with their own MC/CVOR authority don't need NTL—they need primary liability insurance that covers them at all times. NTL is only for those operating under someone else's authority.
What NTL Covers (and Doesn't)
Covered
- Bodily injury to others in an accident
- Property damage you cause
- Legal defense costs
- Accidents while deadheading (usually)
NOT Covered
- Damage to YOUR truck (need physical damage coverage)
- Cargo you're hauling
- Accidents while under dispatch (carrier covers this)
- Any business use of the truck
The "Dispatch" Definition Problem
The biggest issue with NTL is defining when you're "under dispatch." This creates grey areas:
- Driving to pick up a load: Are you under dispatch when you accept a load, or when you arrive at shipper?
- After delivery: Does dispatch end when you unload, or when you log off for the day?
- Layovers: If you're waiting for your next load, which coverage applies?
These disputes often end up in court. That's why it's critical to have both carrier coverage and NTL—so there's no gap regardless of how "dispatch" is interpreted.
NTL Policy Limits
Most NTL policies offer:
- $1,000,000 CSL: Combined Single Limit (most common)
- Split limits: $100,000/$300,000/$50,000 (less common)
Given Ontario's litigation environment, a $1M limit is recommended. The cost difference between $500K and $1M is usually only $100-200/year.
How Much Does NTL Cost?
NTL is relatively inexpensive compared to primary liability:
| Factor | Lower Cost | Higher Cost |
|---|---|---|
| Driver Experience | 5+ years, clean record | New driver, violations |
| Location | Rural Ontario | GTA, urban areas |
| Truck Value | Older unit | New, expensive truck |
| Annual Range | $500 - $800 | $1,200 - $1,500 |
Getting NTL Coverage
NTL can be purchased from:
- Your existing insurer: If you have physical damage coverage, they can often add NTL
- Trucking insurance brokers: Specialists who work with multiple carriers
- Your motor carrier: Some carriers offer NTL as part of their lease package (but compare prices)
Make sure any NTL policy you purchase is recognized by your motor carrier—they may have specific requirements or preferred insurers.
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