Glossary
Bobtail insurance, defined
Liability coverage for a tractor being driven without a trailer attached, whether or not the driver is under dispatch at the time.
In practice
The name describes the look of a cab with no trailer behind it. Owner-operators leased to a motor carrier buy it because the carrier's policy is typically written to apply only under dispatch, and the road between a delivery and the next pickup, or between the terminal and home, is often driven bobtail. It differs from non-trucking liability, which turns on personal versus business use rather than on whether a trailer is hooked up; some policies combine the two. It covers injury and damage to others, not the tractor itself, which needs physical damage coverage. Premium is modest and rated per unit. Read the lease, since many prescribe which form the carrier expects.
A worked example
Suppose a driver delivers a trailer, unhooks, and heads bobtail to a truck stop while dispatched to the next load. On the way she strikes a parked car. The carrier argues the trip was between loads; the bobtail policy responds and pays the $8,000 property damage claim. Hypothetical.
Applies to: Commercial Auto Insurance