What Is Non-Trucking Liability Insurance and Does It Affect Accident Claims?

If you drive a commercial truck, chances are you’ve heard about non-trucking liability insurance. But what exactly does it cover — and how does it affect your accident claim if something goes wrong when you’re not on the job?

Whether you’re an independent owner-operator or leased to a motor carrier, understanding non-trucking liability can make a big difference in how an insurance claim is handled. Below, we’ll break it down in plain language.

What Is Non-Trucking Liability Insurance?

Non-trucking liability insurance (sometimes called NTL insurance) covers a commercial truck when it’s being used for non-business purposes. This type of policy is for drivers who use their truck outside of work hours — such as driving to the store or heading home after a delivery.

It does not cover:

• Hauling cargo
• Driving under dispatch
• Any trip related to work for a carrier

In short, if you’re not on an active job and you’re using your truck for personal reasons, this insurance may apply.

Who Needs Non-Trucking Liability Coverage?

Not every trucker needs NTL coverage. It mostly applies to:

• Owner-operators who are leased to a motor carrier
• Drivers under permanent lease who use their truck outside of dispatch
• Motor carriers who require it as part of a lease agreement

If you’re fully independent and haul under your own authority, you might not need non-trucking liability. But if you’re under lease to a company, your lease may require you to carry it.

What’s the Difference Between Bobtail and Non-Trucking Liability?

People often confuse bobtail insurance with non-trucking liability insurance—but they’re not the same.

Coverage Type	When It Applies
Bobtail Insurance	When you’re driving the truck without a trailer, regardless of purpose
Non-Trucking Liability	When you’re driving the truck for personal reasons, with or without a trailer

Bobtail covers a specific condition (no trailer). NTL covers a specific purpose (non-business use). NTL covers a specific purpose (non-business use).

According to the Federal Motor Carrier Safety Administration (FMCSA), both types of coverage may be required in different situations, depending on the terms of a lease agreement and the policies of the motor carrier.

Does Non-Trucking Liability Insurance Affect Accident Claims?

Yes, it can. If you’re in an accident while using your truck for personal reasons, the type of insurance that applies could depend on whether you’re covered by NTL — or if the accident happened while you were actually on duty.

Here’s how it might play out:

• You’re off duty and going grocery shopping: NTL might cover the damages if you cause a crash.
• You’re returning from a delivery and haven’t been formally dispatched again: You may still be considered “under dispatch,” depending on the lease terms. In that case, your motor carrier’s insurance might apply instead.
• You’re on your way to pick up a load, even without a trailer. This is likely not covered by NTL.

In a personal injury claim or truck accident lawsuit, insurance companies often debate whether the driver was acting in the course of employment or not. This distinction matters because it can shift responsibility between your NTL insurer and the carrier’s liability policy.

What Does Non-Trucking Liability Insurance Cover?

Here’s a quick breakdown of what’s typically covered under NTL:

✅ Bodily injury and property damage you cause while using the truck for personal reasons
❌ Damage to your truck (you’ll need physical damage coverage for that)
❌ Cargo damage (not covered under NTL)
❌ Accidents while under dispatch

So, if you rear-end another car while visiting a friend on your day off, your NTL policy may cover the damages to the other vehicle and any injuries. But if you’re hauling freight — even without getting paid — it won’t apply.

Is NTL Insurance Required by Law?

There’s no federal law that requires non-trucking liability insurance. However, many motor carriers require it in lease agreements to protect their own insurance policy from being used in off-duty accidents.

In Pennsylvania and other states, the Public Utility Commission and the Department of Transportation may also have guidelines for motor carriers and independent contractors, depending on how trucks are registered and operated.

If you’re driving in or around Pennsylvania, it’s important to understand what your lease says and what kind of coverage you actually have.

How Does It Affect Injury Claims or Lawsuits?

If you’re hit by a truck and the driver was off duty, non-trucking liability insurance could be the one paying your claim.

However, disputes over whether the truck was being used for personal or business reasons are common. Victims may need to prove the driver was acting within the scope of their job — even if they weren’t hauling cargo at the time.

This matters because:

• Motor carriers generally have more robust insurance policies
• Victims may be able to recover more damages if a company’s policy applies
• Non-trucking policies may have lower limits and more exclusions

According to the Insurance Information Institute, commercial truck accidents can lead to large claims — especially when they involve serious injuries or multiple vehicles. That’s why sorting out which policy applies is often a big part of the legal process.

What to Do After a Truck Accident Involving Non-Trucking Liability

If you’re in a crash involving a commercial truck — whether you’re the truck driver or the injured party — it’s important to:

• Document the scene. Take photos and collect contact info.
• Note what the driver was doing. Were they hauling cargo? Under dispatch? Off duty?
• Get a copy of the lease agreement (if possible). This helps clarify who was responsible.
• Contact an experienced truck accident lawyer. These cases can get complicated fast.

Sorting out who’s responsible and which insurance applies can be tricky. The sooner you get legal help, the better your chances of protecting your rights and getting the compensation you need.

Talk to a Truck Accident Lawyer in Pennsylvania

Truck crashes are rarely simple. Insurance coverage — especially policies like non-trucking liability — is one of the most contested issues in many cases. If you’ve been injured in a collision involving a commercial truck, the team at Munley Law is here to help.

Our attorneys have decades of experience handling truck accident cases in Pennsylvania and nationwide. We’ve earned recognition from Best Lawyers, Super Lawyers, and the American Board of Trial Advocates, and we’ve been helping injured people and their families for over 60 years. 

We’re here to help. Call for a free consultation today.