Commercial Truck Liability Insurance starts with Commercial Auto Liability
Read on for an easy truck liability cheat sheet that Small Truckers can use to remember the type of Liability Insurance they need.
Has anyone ever said to you, “You’re liable to get sued”?
What does being “liable” actually mean?
It means you could be legally responsible if you cause any damage.
But which Liability is which and what do you need to haul freight for hire in your truck?
Commercial Auto Liability Insurance for Truckers
Commercial Auto Liability comes into play if you hurt someone or something while driving your truck.
This is the type of insurance you need to legally drive your truck on the road.
When someone talks about your Primary Insurance, this is what they mean.
You also carry Auto Liability Insurance to cover your car.
But as an Owner Operator of a Commercial Vehicle, your legal responsibilities are larger than your personal car insurance requirements.
How Your Commercial Auto Liability Insurance Works
When you buy your Commercial Auto Liability policy, you’re basically making a bet.
You’re betting a truck accident might happen, while the insurance company is betting it won’t.
Here’s what happens if there’s an accident:
- If it’s your fault, your insurance covers the damages, up to your policy limits.
- If it’s unclear who’s at fault and you’re sued, this insurance steps in for the legal costs to defend you, up to your policy limits.
Truck Liability Insurance is like a safety net—you hope you’ll never need it, but you’ll be glad it’s there if you do.
Who Needs Commercial Auto Liability Insurance?
If you’re hauling freight for hire across state lines you’ll need to get DOT operating authority and register your vehicle with FMCSA.
If you’re driving any vehicle for business, your state DMV might require you to register it for commercial use.
Not sure if your vehicle qualifies as a commercial one?
Check out What is the Definition of a Commercial Vehicle to learn more.
Different Types of Commercial Auto Liability Policies for Truckers: Let’s Break It Down
Commercial Auto Liability insurance for truckers isn’t a one-size-fits-all deal.
The type of coverage you need depends on how you use your truck and who’s responsible for it.
Here’s a quick rundown of the main coverage options for Motor Carriers and Owner Operators hauling freight for hire:
1. Primary Commercial Auto Liability
This is often called your “Primary Liability.”
Basically, if you want 24/7 coverage, Primary Commercial Auto Liability is the type of policy you need.
If you’re a Motor Carrier with your own DOT operating authority, you’re required to have Primary Commercial Auto Liability—no exceptions.
This is the type of coverage your insurance company sends to the FMCSA to prove that you’re meeting their requirements.
This coverage keeps your business legally compliant and protects the public from financial harm in case of an accident.
2. Non-Trucking Liability (NTL)
Non-Trucking Liability (NTL) is a type of Commercial Auto coverage made for Owner Operators.
If you’re leased to a Motor Carrier and hauling under their DOT authority, this one’s for you.
This is a common arrangement between Motor Carriers and Owner Operators and here’s how it usually works:
- The Motor Carrier you’re leased on to provides the Primary Commercial Auto Liability when your truck is being used for any kind of business purpose.
- NTL (Non-Trucking Liability) covers you, the Owner Operator when you’re using your truck for personal reasons—basically, when you’re not driving “for the benefit of” or “on behalf of” the Motor Carrier.
Sounds simple, right?
But Non-Trucking Liability coverage isn’t always so straightforward. Terms like “operating on behalf of” can be a bit fuzzy.
Take these examples:
- Driving your truck to get a tire fixed? Even if you’re off dispatch and not hauling freight, that is still considered “business use.”
- Courts have even ruled that running a quick personal errand during business use could void your NTL coverage.
The bottom line? Make sure you know exactly what your NTL policy covers and what your Motor Carrier’s Primary policy covers so everything lines up the way you expect.
That way, you’ll know you’re fully protected.
3. Unladen Liability
Unladen Liability provides broader coverage compared to NTL. It applies when your truck is operating without a load but not actively under dispatch.
- If your truck is loaded with freight, the Motor Carrier’s Primary Liability covers the Owner Operator.
- If your truck is not loaded with freight, then Unladen Liability kicks in on the Owner Operator’s side.
Unladen Liability tends to cost more than Non-Trucking Liability because it provides more coverage for the Owner Operator, rather than putting most of the responsibility on the Motor Carrier.
So if your Motor Carrier requires you to carry Unladen Liability, understand that this policy will cost you more than a basic Non-Trucking Liability policy.
Your Motor Carrier will be paying less for his Primary Commercial Auto Liability, and you will be paying more for your Unladen Liability policy vs a Non-Trucking Liability policy .
Thinking about which Motor Carrier to haul for?
Make sure to check out their contract requirements and compare insurance your cost for Unladen vs. Non-Trucking Liability before making a decision.
4. Bobtail Liability
Bobtail Liability specifically covers trucks operating without a trailer attached. While less common today—most policies have transitioned to Non-Trucking Liability—Bobtail Liability is still a term you might hear in the industry. If someone says “Bobtail”, they usually mean “NTL.”
5. General Liability
General Liability is often confused with the Primary Liability listed above.
This insurance isn’t required, but General Liability is extra affordable coverage Small Truckers can buy to protect themselves from events that could occur when not driving their truck.
The most common General Liability claim is for damages caused to a facility or people during loading and unloading of freight.
Read more examples of Why You Need Truckers General Liability
What You Need to Know About Commercial Auto Liability Insurance for Hauling Freight Across State Lines:
Commercial Auto Insurance Coverage Limits set by FMCSA
If you’re hauling freight across state lines, the Federal Motor Carrier Safety Administration (FMCSA) mandates minimum liability coverage to protect the public from uninsured or underinsured truckers.
Cargo Van and Sprinter Insurance minimum requirements are $300,000 CSL
Check out our guide on insuring Cargo Vans for Commercial Use.
Hot Shot Insurance FMCSA minimum requirements are $750,000 CSL
GEICO Hot Shot Insurance has some awesome deals right now for all you One Ton Dually and Trailer guys!
If you’re driving a vehicle over 10,001 GVW—whether it’s a delivery van or a semi—the FMCSA requires you to have at least $750,000 in CSL coverage.
CSL = Combined Single Limits
Not crossing state lines with your freight? Your state might still have its own rules.
Check out our CIS Commercial Truck Insurance Blog for Owner Operators to see what your state requires.
Is there Affordable Commercial Auto Liability Insurance for new Motor Carriers?
Affordable truck liability coverage protects you without breaking the bank.
But finding a decent policy can be tough—especially if you’re a new Motor Carrier just starting out.
For the longest time, Progressive was really the only option out there for new start up Owner Operators and Motor Carriers.
But thankfully, GEICO is now offering affordable commercial auto coverage for both new and established Motor Carriers and Owner Operators.
We’re proud to be one of the few independent trucking insurance agencies representing GEICO Commercial Auto nationwide.
GEICO’s low premiums are really shaking things up, giving Progressive some serious competition and helping bring down costs for small truckers.
Why Small Truckers choose CIS Commercial Auto Insurance?
Just check out CIS 5-Star Google Reviews to see why so many Small Truckers choose CIS for their Commercial Auto Liability and more.
Since 2002, our family-owned agency has been helping Small Truckers across the country get the coverage they need at the lowest price.
And at CIS, we make your truck insurance easy—then we shop around for you with multiple carriers every year so you don’t have to.
We know you by name and love hearing from you—whether you’re adding a driver, looking at a funky Cert, or just calling up to say “Hi.”
Our goal? To find you the best coverage at the best price, from day one to every renewal. No fees, no hassle.
Right now, GEICO is making it easy to lock in some very affordable commercial auto insurance for small truckers!
Big changes are coming in 2025, and Small Trucking businesses are buzzing.
Stay ahead of the curve by teaming up with us.
Even if you don’t have your truck or commercial van yet, give us a call!
We’re here with free advice to help you start out with the lowest upfront costs.
Want to learn about other coverage you might need to hit the road?
Easily learn your truck liability insurance basics with CIS Truck Insurance cheat sheets that explain what Small Truckers need to know.
Check out other coverage you may need to get on the road:

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Authors
2002 Founder of Commercial Insurance Solutions, Inc., Shelly Benisch specializes in providing Commercial Truck Insurance for owner operators and small motor carriers. Both CIC and TRS certified, She also writes a free educational trucking insurance advice blog dedicated to the little guy.
CEOExecutive Director of Commercial Insurance Solutions, Inc., Christina Cummings leads her team in providing the best Truck Insurance with the best rates for Owner Operators and small Motor Carriers. Christina is TRS certified as a Transportation Risk Specialist. She is your "go to" person at CIS with questions, tips and networking opportunities in our trucking and expediting community.