Leased to Carrier Insurance — Washington State
Insurance for Owner-Operators Leased to a Motor Carrier
When you're leased to a carrier, their insurance covers you under dispatch — but there are significant gaps. Understanding what you're covered for, and what you're not, is critical to protecting yourself and your truck.
Bobtail · NTL · Occupational Accident · Physical Damage · Hablamos Español
What Your Carrier's Insurance Covers
What the Carrier's Policy Actually Protects
When you sign a lease agreement with a motor carrier, their insurance covers you in specific situations. Here's exactly what that means — and where it stops.
What the Carrier Covers
What the Carrier Does NOT Cover
Coverage You Need
What Leased Owner-Operators Should Carry
Bobtail Insurance
Covers your truck when you're driving without a trailer — between loads, heading home, repositioning. Most carrier lease agreements require it. Typically $30–$60/month. Covers you any time you're bobtailing, whether under dispatch or not.
Non-Trucking Liability (NTL)
Covers personal use of your truck when you're completely off dispatch. Some lease agreements specify NTL instead of bobtail. Read your lease carefully — they're not the same thing. NTL only covers personal use; bobtail covers more situations.
Physical Damage
Covers your truck if it's damaged in an accident, stolen, or hit by weather — regardless of whether you're under dispatch. Required by lenders. Your most valuable asset deserves protection.
Occupational Accident
Covers medical expenses and lost income if you're injured on the job. As an independent contractor, you don't have workers' comp. If you're hurt and can't drive, occupational accident keeps you from financial disaster.
Trailer Interchange
If you pull trailers you don't own that aren't covered by the carrier's policy, trailer interchange covers damage to those trailers while in your care. Check your lease and operating agreements.
Bobtail vs. NTL
Bobtail vs. Non-Trucking Liability: The Critical Difference
These two coverages are often confused — and the difference matters. Choosing the wrong one can leave you with a gap in coverage.
| Scenario | Bobtail | NTL |
|---|---|---|
| Driving home after dropping a load (still under dispatch) | Covered | Not covered |
| Driving to pick up an empty trailer (under dispatch) | Covered | Not covered |
| Running personal errands in your truck (off dispatch) | Covered | Covered |
| Driving to a truck stop between loads (off dispatch) | Covered | Covered |
| Taking your truck on a family road trip (off dispatch) | Covered | Covered |
"My carrier told me I was covered. UIS read my lease and showed me exactly where I wasn't. Got bobtail and occupational accident the same day."
— Leased Owner-Operator, Washington State
Know Your Lease
What to Look for in Your Carrier Lease Agreement
Your carrier lease agreement is the most important document governing your insurance obligations. Here's what to look for.
Required Insurance Types
Your lease will specify what insurance you're required to carry — typically bobtail or NTL, and sometimes physical damage. Read this section carefully.
Minimum Coverage Limits
The lease may specify minimum limits for each coverage type. Make sure your policy meets or exceeds these minimums.
Named Insured Requirements
Some leases require the carrier to be listed as an additional insured on your policy. We'll make sure your policy is structured correctly.
Cargo Coverage Clarification
Understand exactly what the carrier's cargo policy covers and what it excludes. If there are gaps, you may need your own cargo coverage.
Indemnification Clauses
Many lease agreements include indemnification clauses that make you responsible for certain losses. Understanding these helps you know what coverage you actually need.
Common Questions
Leased Operator Insurance FAQ
My carrier says I'm covered — do I really need my own insurance?
You're covered under dispatch — but only under dispatch. The moment you're off dispatch, the carrier's coverage stops. You need bobtail or NTL for off-dispatch driving, and you need physical damage coverage for your truck regardless. The carrier's policy protects the carrier; you need coverage that protects you.
How do I know if I need bobtail or non-trucking liability?
Read your lease agreement — it should specify which one is required. If it doesn't specify, bobtail provides broader protection. Call us and we'll help you read your lease and determine exactly what you need.
What happens if I have an accident while off dispatch without bobtail coverage?
You'd be personally liable for any damage you cause. The carrier's policy won't respond because you're off dispatch. Your personal auto policy won't cover a commercial truck. You'd be facing a potentially catastrophic financial loss with no insurance protection.
Does occupational accident replace workers' compensation?
It's not a direct replacement, but it fills a similar role for independent contractors. Workers' comp is a state-mandated program for employees; as an independent contractor, you're not eligible. Occupational accident provides medical expense coverage and income replacement if you're injured on the job.
Can I switch carriers and keep my insurance?
Your bobtail/NTL and physical damage policies are yours — they follow you, not the carrier. If you switch carriers, you may need to update your policy to reflect the new carrier's requirements, but you don't start over. Call us when you're making a carrier change and we'll make sure your coverage transitions correctly.
Related Trucking Coverage
Get Your Leased Operator Quote Today
Tell us about your lease arrangement and we'll build the right coverage package to fill your gaps — bobtail, physical damage, occupational accident, and more.
Bobtail · NTL · Occupational Accident · Physical Damage · Hablamos Español · Serving all of Washington