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Dream Assurance Group

Non-Trucking Liability:
A Key Coverage for Carriers & Drivers

A red semi truck

NTL insurance is designed to offer coverage for Owner/Operators, also known as Drivers/Truckers, who are under a permanent lease agreement with an authorized motor carrier. This coverage provides liability protection for the specified vehicle, but exclusively during non-business, personal use. NTL insurance serves as an additional safeguard, addressing gaps in coverage that might not be included in the primary auto insurance policy held by the motor carrier.

Given the rapid increase in judgments resulting from trucking accidents, there is an amplified need to prioritize comprehensive liability insurance coverage. The statistics are striking: fatal accidents involving over 5,000 trucks were reported in 2019, marking a substantial 43% surge compared to figures from 2010. In the span from 2010 to 2018, there was an extraordinary surge of nearly 1,000% in average verdicts exceeding $1 million, escalating from $2.3 million to $22.3 million.

These substantial verdicts, often referred to as “nuclear verdicts,” have led insurance providers to exercise heightened caution regarding their coverage decisions. For instance, primary auto insurers may meticulously evaluate claims to establish whether the driver was genuinely engaged in trucking company activities at the time of the accident. In situations where there’s uncertainty regarding whether the driver was using the truck for personal reasons, the insurer might reject the claim to minimize their risk exposure. NTL insurance furnishes an additional layer of protection in scenarios where an accident transpires and is not encompassed by the principal auto insurance of the motor carrier.

While occurrences of claims in such circumstances may be less frequent compared to those transpiring during working hours, the consequences can be equally momentous. A single accident has the potential to subject a trucking company or owner-operator to a devastating verdict that could jeopardize their operational viability.