Owner Operators have varying degrees of insurance needs depending on if they are under a permanent lease with a different motor carrier or operating under their own authority. The most common coverages for the owner operators under a lease agreement include bobtail coverage, non-trucking liability, and physical damage.
Bobtail insurance – Insurance designed to meet the needs of owner operators specifically when a tractor is unattached to a trailer. This can meet that the truck is under dispatch or on personal time.
Non-trucking liability – An endorsement that can be added a commercial transportation policy that provides coverage for a truck on personal time while not under dispatch.
Physical damage – A commercial insurance policy that will cover the tractor and trailer if damaged in an accident.