Cargo Insurance

Bobtail Insurance

This covers the freight only, not the vehicle (s) or personal property in any accident or claim.

This is BUSINESS insurance that is required and is activated when you are under dispatch (deadheading) to go get your load, BUT NOT YET LOADED.

The phrase “Bobtail” was coined after a small animal named Bobcat, which has a short, stubby tail (Bobtail) while other animals typically have long tails.
When a tractor has no trailer (missing the long tail) this was coined “Bobtailing) since the tractor has no load since it has no trailer. Normally Bobtail is associated with tractor trailers but now generally includes any delivery vehicle with NO load.

When a vehicle has no load and is dead heading to pick up it's freight, typically it is not traveling long distances. A carrier generally will not send someone dead heading extremely long distances because there's no full paid money in it. This is when your Bobtail insurance is activated. Bobtail insurance is generally very inexpensive, paid monthly. It's cost is low because your traeling short distances, at lower rates of speed (most likely in urban pick up area's) with a lower speed limit and your not loaded so your units weight is not much, so the risk level of an accident / serious accident is minimal, making the cost realtively low.

When your loaded, Bobtail insurance “turns off” and Primary Liability  insurance “turns on” - the risks are tremendously different and so are the rates.

This is insurance you’d get if you worked for someone else, like Sears or Wal-Mart. They usually pay for it, but your at a much less wage than if you were self employed.

Primary Liability  is BUSINESS insurance to cover your delivery unit. Even if your delivery unit is also used as your personal vehicle when not in use for deliveries /  personal errands etc., (when not working)...

The Primary Liability is only activated when you are “under load“. If your using your delivery unit for personal use and your involved in an accident, then your “Comp & Collision“ insurance will be used in that situation, that insurer would get your claim.

When you have your load in your possession, freight in your unit, your Primary Liability insurance then activates and your Bobtail deactivates. The names change because the circumstances have changed and so have the risks involved. When your under Bobtail, your unit is empty, lighter, traveling slower and shorter distances. When your loaded, your traveling much greater distances at higher rates of speed and much, much heavier, creating a much greater set of circumstances and more than likely more damage to personal property or to other vehicles, should there be an accident while under load. The rates for this insurance will be much higher than Bobtail because the risks and extent of damage and injury is much greater, therefore the cost is going to be higher.

Typically your paycheck will have a deduction for this to pay for YOUR Primary Liability policy, but it is coordinated through the carrier. The carrier will usually get a volume discount due to it's fleet size and typically passes the same rate on to you that the insurance company charges. If you are operating under your own ICC# and authority, you'll have to get your own Primary Liability policy and list the carrier as a “Certificate Holder“ and you will coordinate your own Primary Liability policy and it will most likely be much, much more expensive unless you have your own fleet of trucks with it's own umbrella policy.

This is what you SHOULD have when assigned to a carrier as an Independent Contractor performing deliveries for the carrier. This is similar to Workman ’s Comp., but since your not an employee of the company, you’ll probably be forced to have this coverage. This is required by most companies to avoid lawsuits against the carriers or shippers / consignees if your injured while under dispatch or under load. This avoids lawsuits against the companies / shippers if you fell off a dock, had your toe run over by a fork lift or pinched your finger under a pallet while getting loaded. Your medical bills will be covered and no one has to be sued. It’s protection for the carriers as well from your injuries while working.

Comp & Collision; Everybody has this insurance that owns an automobile, but only vehicles that are used for both personal and business (eXpediters) will have more insurance's on the same vehicle.

If your in an accident while your vehicle is in use for “personal” tasks and an accident occurs, the claim goes to your comp and collision insurer.

If the vehicle is used both for personal and business and it's in an accident while under dispatch or under load, then and only then would the claim be presented to either the Bobtail or Primary Liability insurer. The Bobtail and Prim. Liability insurer are usually different.

If your operating without comp. & collision, or Bobtail or Primary Liability, cargo or Occupational Accident insurance, your operating under tremendous risk to yourself and your business.

Beleive it or not, many small fleet owners capturing their own customers may think they have the right insurance coverage but often times they do not. When the inevitable happens from a fender bender to a major accident, this is when you'll find out that the costs associated with the accident out weigh the costs of the insurance premiums.

You may contact Lynda Norton, Founder of eXpediters Network for additional details or reputable insurance companies to speak with to evaluate your insurances.