Donald Brady was driving Robert Braden’s vehicle with permission when he struck and killed Jerome Anderson, Jr. This tragic story should be resolved with Robert Braden’s insurance policy providing the defense and coverage for Donald Brady since he was operating the vehicle with permission. Unfortunately, when death is by “bobtail,” the story has a twist.

The vehicle was a tractor owned by Robert Braden and leased to J.W. Express, an interstate freight carrier. When the tractor was attached to a trailer, it was used to transport goods. This is the situation the Insurance Company of State of Pennsylvania (ICSP) was covering. The lease between Robert Braden and J.W. Express required that Robert have “bobtail coverage” when the tractor was not being used in the freight business.

Donald Brady had visited Robert Braden socially then drove the tractor without a trailer or “bobtail” home. It was during the drive home the accident occurred and because of the timing, there was no coverage even though the vehicle had a sign that identified it as a J.W. Express vehicle.

This court case describes a typical driver/freight carrier relationship. The tractors are often owned by the drivers and leased to freight companies. It allows the drivers independence and the freight companies flexibility. However, it does create unique insurance needs. The ISO Truckers and Motor Carrier Coverage forms address the freight company’s unique needs, and the ISO Business Auto Policy provides an endorsement to cover the bobtail exposure.

There are two ways to approach an exposure problem – pass the problem to another agent or solve it yourself. (Yes, there are other ways – avoid it, ignore it, tell the client it’s covered, etc. but these methods lead to even more serious problems). If you are interested in solving the problem and you know your carriers are not interested in trucking exposures, The Insurance Marketplace should be your starting point.

Click here to view a sample of the companies
listed in The Insurance Marketplace who are
interested in bobtail operations.

This sample is for Indiana-based exposures.

The “How To Insure” training courses in the Producer OnLine can get you started. Becoming an expert in insuring a trucker industry will take years but if you don’t start, you will never be one. It is a fascinating industry with a significant premium base. The “How To Insure” Truck Lines course can get you started – only you can decide how far you want to go.

Some of the words added in the 2007 Insurance Words and Their Meanings are:

Have you found what you need in the Producer OnLine? Is there a classification to add to the Producer's Commercial Lines Risk Evaluation System or a subject that you would like to see covered in PF&M?  Contact us now.

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