(October 2019)
In order to understand this endorsement, a few terms must be defined:
Bobtailing means driving only the tractor (motorized portion) of a tractor/trailer combination vehicle with no trailer attached.
Bobtail coverage is auto liability coverage that insures against losses involving tractors that operate without a trailer. This usually takes place after a trailer is delivered or when the operator is traveling to pick up a trailer.
Deadheading is driving a tractor-trailer unit without having freight in the cargo area.
Deadheading coverage is auto liability insurance coverage for exposures of operating a tractor/trailer combination vehicle with an empty trailer.
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Examples: Joe drops his trailer off at ABC trucking and drives back home. He is bobtailing. Joe drops his trailer at Fran’s bakery and drives to Doug’s Plumbing supplies to pick up a trailer. He is bobtailing during the trip between Fran and Doug. Mary runs a load of apples from Saginaw to the processor in Grand Rapids but has nothing to pick up there and returns to Detroit with an empty trailer. Mary is deadheading between Grand Rapids and Detroit. |
These examples are not a problem for normal trucking operations because owned tractors and trailers are always covered. In addition, hired tractors and trailers are covered during the period of hire. However, these instances present a gap in coverage for independent truckers operating for hire under a trucking or motor carrier business' operating authority. The insurance coverage provided by the trucking/motor carrier business ends once the independent trucker completes the haul. Bobtailing and deadheading are times when independent truckers operate outside the trucking/motor carrier business' insurance coverage and could be uninsured.
Independent truckers may purchase a Motor Carrier Coverage Form and be covered at all times. However, this is expensive and duplicates or overlaps the trucking/motor carrier business' insurance coverage when the independent trucker works under its operating authority.
Another option is for independent truckers to purchase a Business Auto Coverage Form, list all owned vehicles and attach CA 23 09–Motor Carriers (10 13 change)–Insurance For Non-Trucking Use. This endorsement restricts coverage to non-trucking activities by modifying the “Who Is an Insured” provision. It also adds an exclusion stating that insurance does not apply to covered autos that are being used to carry property in any business, or while being used in the business of anyone to whom the independent trucker rents the auto.
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Example: Fergus normally uses his tractor-trailer unit to do contract work for ABC trucking. He decides to pick up some extra money by carrying a load for a friend without going through ABC but makes a mistake and strikes another vehicle. Fergus has no coverage for the accident because CA 23 09 is attached, and he used the vehicle in a business activity. Had he been picking up items for a friend without charge, there could have been coverage. |
This endorsement also restricts Who Is an Insured to not apply to anyone in the business of transporting property for hire that is responsible for the independent trucker’s conduct.
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Example: Fergus contracts with ABC Trucking to deliver a load of fruit. The weight shifts and the trailer fishtails, striking and demolishing two sedans. ABC trucking cannot look to Fergus’ insurance coverage because it is in the business of transporting property for hire and is also responsible for Fergus’ conduct. |
Note: The only vehicles restricted are those indicated on the endorsement schedule.
Insurance companies evaluate independent trucker exposures carefully because of the complicated contractual obligations, the expense of the units, and the instability of bobtail and deadhead situations. Tractors are designed to carry heavy loads and operate with an unstable center of gravity with horsepower well exceeding what is needed when uncoupled from a trailer. A tractor pulling an empty trailer may have a more stable center of gravity, but the lighter weight of the trailer adds instability because of how it responds to wind conditions on the road.
Insurance companies that specialize in insuring independent truckers normally write this coverage.
The premium charged for acceptable risks is determined based on each insurance company's individual manual rates or filings, even though Insurance Services Office (ISO) has rating procedures in the Commercial Auto Rules Section 24. B.