Short answer
When you lease your box truck onto a carrier, the carrier has to carry the public liability insurance its authority requires, and the lease has to say so. That is the one coverage federal rules put on the carrier. Everything else, such as non-trucking liability, physical damage on your truck, cargo and occupational accident coverage, is decided by the lease. Federal leasing rules require the lease to name who provides that other insurance and, if the carrier bills you for any of it, how much. So the answer to “what is covered” is in the insurance section of your lease, not in a general rule.
Insurance requirements depend on the carrier and your lease agreement. Some coverage may be provided by the carrier, while other policies or costs may remain your responsibility. This guide shows which part the rules settle, which part your lease settles, and what to ask before you sign.
Here we cover only the leased on case, for box truck owner-operators running under a carrier’s authority.
What the Carrier Must Cover
The leasing rule is 49 CFR 376.12. Paragraph (j)(1) says: “The lease shall clearly specify the legal obligation of the authorized carrier to maintain insurance coverage for the protection of the public pursuant to FMCSA regulations under 49 U.S.C. 13906.”
That is public liability: coverage for injuries and damage your truck causes to other people while it runs for the carrier. Under 49 CFR 387.9, the minimum for a for-hire carrier hauling general freight interstate in a vehicle rated 10,001 pounds or more is $750,000. Section 387.7 says a motor carrier cannot operate a vehicle until it has that coverage in effect. When you are leased on, that obligation sits with the carrier, because the truck runs under the carrier’s authority.
The same rule gives the carrier “exclusive possession, control, and use” of your truck for the length of the lease, and makes it responsible for the operation of the equipment. That is why the carrier’s policy, not one in your name, answers for the public while you are under its dispatch.
What the Lease Decides
The next sentence of 376.12(j)(1) is the one to read carefully: “The lease shall further specify who is responsible for providing any other insurance coverage for the operation of the leased equipment, such as bobtail insurance.”
The rule does not say who pays for this other coverage. It says the lease has to state it. Two carriers can split it in opposite ways and both follow the rule.
| Coverage | Who provides it |
|---|---|
| Public liability while working for the carrier | The carrier, under its authority. The lease must state it. |
| Non-trucking or bobtail liability when the truck is off the carrier’s dispatch | Whoever the lease names. The rule uses bobtail as its example. |
| Physical damage to your own truck | Whoever the lease names. No federal minimum. A truck loan may require it. |
| Cargo | Whoever the lease names. The federal cargo rule in 387.303(c) covers household goods carriers, not general freight. |
| Occupational accident or workers’ comp | Whoever the lease names. State rules apply. |
For a box truck, the term “bobtail” can be confusing, because there is no trailer to drop. What matters is the gap between the carrier’s policy and your own: when the truck is not working under the carrier’s dispatch, such as driving home or to a repair shop, the carrier’s coverage may not apply. A non-trucking liability policy is meant for that time. Policies define “off dispatch” in different ways, so ask the agent where the carrier’s coverage stops and yours starts.
When the Carrier Charges You for Insurance
Many leases bill some insurance back to the owner-operator. The rule allows it, with conditions:
- The amount must be in the lease. Under 376.12(j)(1), “If the authorized carrier will make a charge back to the lessor for any of this insurance, the lease shall specify the amount which will be charged-back to the lessor.”
- You can see the policy. Under 376.12(j)(2), if you buy coverage from or through the carrier, the carrier must give you a copy of each policy when you ask for it.
- You get a certificate for each policy. It must show the insurer, the policy number, the effective dates, the amounts and types of coverage, your cost for each type and the deductible you may owe.
- Cargo and damage deductions need paperwork first. Under 376.12(j)(3), the lease must state when the carrier can deduct cargo or property damage from your settlements, and the carrier must give you a written explanation and itemization before any deduction is made.
Treat the deductible as part of your cost. If a cargo claim comes back to you up to the deductible on the certificate, that is money out of a settlement, even though the carrier holds the policy.
What It Costs You on a Lease
On a lease, your insurance cost is the sum of three things:
- The charge-backs the lease lists for the carrier’s coverage, if any.
- The policies the lease leaves to you, such as non-trucking liability or physical damage.
- The deductibles you can be charged when there is a claim.
Compare that total, not the headline split, when you look at two lease offers. A lease with a larger carrier share and no insurance charge-backs can leave you more than a smaller share with heavy charge-backs.
Questions to Ask Before You Sign
- Which coverage does the carrier provide, and does the lease state its public liability obligation?
- Which policies does the lease leave to me, by name?
- What is charged back for insurance each week or each settlement, and is the amount written in the lease?
- Can I see a copy of each policy and get a certificate with the deductibles?
- What is my deductible on a cargo claim, and how will the carrier explain and itemize any deduction?
- When exactly does the carrier’s coverage stop, so I know when my non-trucking policy has to start?
When the Lease Ends
The carrier’s public liability covers your truck only while it runs under the carrier’s authority. If you change carriers, check the start date of the new carrier’s coverage before your first trip. If you move to your own authority, the $750,000 minimum and every other policy become yours, and the cost math changes. Our FAQ lists the minimum coverage to plan for in that case.
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Find Box Truck Opportunities →Frequently Asked Questions
What insurance does the carrier provide when I’m leased on?
Insurance requirements depend on the carrier and your lease agreement. The carrier must maintain the public liability coverage its authority requires, and under 49 CFR 376.12(j)(1) the lease must say so. Some other coverage may be provided by the carrier, while other policies or costs may remain your responsibility. The lease has to name who provides each one.
Do I need non-trucking liability if I’m leased on?
Often, yes. The carrier’s public liability covers the truck while it works under the carrier’s dispatch. For the time the truck is off dispatch, the lease must say who provides coverage, and the rule names bobtail insurance as an example. If the lease leaves it to you, you need your own policy.
Can the carrier charge me for its insurance?
Yes, if the lease specifies the amount. If you buy coverage from or through the carrier, the carrier must give you a copy of each policy on request and a certificate showing the insurer, policy number, dates, coverage, your cost and the deductible.
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