Non-Truck Liability (NTL) coverage can be an extremely effective tool that’ll plug a coverage gap for truckers who lease with another motor carrier. To avoid issues in the event of a claim, it’s essential to know when NTL is appropriate and when it’s not.
What Non-Truck Liability covers
Our NTL product provides liability coverage to a customer using his or her listed vehicle for most non-business and personal use, when the customer is under permanent lease to another motor carrier that provides primary liability coverage as part of the lease arrangement, and when that agreement expressly excludes coverage for those personal uses. By design, NTL is meant to cover limited, narrowly defined situations, and is priced accordingly.
What it doesn’t cover
Importantly, NTL is not a substitute for Bobtail, Deadhead, or Unladen coverage. These products often offer broader coverage than NTL and are not offered by Progressive. A trucker needing one of them may not be fully served by having NTL, possibly leading to a claim denial if NTL is purchased instead.Call 972 820 7000 speak to agent or email at Insurance@Streamless.com
In addition, Non-Truck Liability is not appropriate for a trucker who needs short-term liability coverage before beginning to haul for hire (“drive away” coverage), or when he or she is between long-term leases. In these cases the trucker needs a primary liability policy, and also needs to be rated as a for-hire trucker (not as “Non Business,” “Other Services,” etc.). Again, NTL is meant to plug a coverage gap related to a long-term lease agreement, and if there is no such agreement, the customer does not qualify for NTL.
How to tell when your truckers need NTL
The key to whether NTL is the appropriate coverage for a trucker is how their lease agreement defines the insurance obligations, so a careful reading of the agreement is essential. NTL should only be used when the lease agreement obligates the trucker to obtain coverage for times when he or she is not operating for the “benefit of the [other] motor carrier.” Note that many activities that a trucker undertakes are deemed to benefit the motor carrier, including fueling up and returning home from delivering a load.
The right way to quote and write NTL
- First, ask to read the trucker’s lease agreement (and retain a copy!). If they don’t have a lease agreement because they are not under long-term lease, do not write NTL.
- If the lease agreement specifically requires the trucker to obtain Bobtail, Deadhead, or Unladen coverage, do not sell NTL. They need coverage from an insurer that offers those products.
- If the lease agreement says the motor carrier (usually referred to as the “lessee”) is providing primary liability to the trucker (the “lessor”) while the trucker is operating for the benefit of the motor carrier, or while the trucker is under dispatch—or it doesn’t mention a limitation in the primary coverage provided—NTL is likely the right choice.
- Call 972 820 7000 an agent will help you determine whether NTL is appropriate for your customer.
As you know, understanding NTL and other Commercial Auto coverage is key to successfully supporting your customers and growing your commercial book, and we’re always glad to help. If you have any questions, contact customer service line at 877-776-2436 or your commercial sales representative at 972 820 7000 local Texas Progressive Independent Agent.
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