Unladen Liability

Your Independent Contractor Operating Agreement (ICOA) with Landstar requires you procure at your expense unladen liability insurance. Such insurance covers bodily injury and property damage to third parties while you are bobtailing or operating your power unit with a leased or owned trailer but are not hauling freight.

The unladen liability program provided through Gallagher Transportation Services; Arthur J. Gallagher Risk Management Services, Inc. a licensed insurance broker, doing business at 2345 Grand Blvd., Suite 400, Kansas City, MO 64108-2671 is one way to fulfill this requirement..

The program's certificate reflects $1,000,000 Combined Single Limit for bodily injury and/or property damage while operating the equipment in either a bobtail, nontrucking or "unladened" basis. This policy will not provide insurance if you are hauling freight.

The unladen insurance coverage is provided by Zurich American Insurance Company. The insurance coverage applies only to a power unit or trailer which, at the time of loss, is under a valid ICOA with Landstar, an additional insured under the policy.

The certificate, a copy of which in accordance with the terms of your ICOA will become an addendum thereto, is issued primarily as a matter of information. Actual policy wording, terms, exclusions and conditions are on file with Landstar for your review, or available to the named insured upon written request. You will receive notice of any material change to this insurance, and if you do not terminate coverage after notice, the changes will by binding on you.

In accordance with the ICOA, all Independent Contractors are automatically covered under and charged for this program at the time of the execution of the ICOA. An exception will be made only after submission and written approval of comparable coverage as noted under "Required Coverage."

Required Coverage

Unladen liability coverage is required under the terms of your ICOA. As an alternative to the Gallagher Program, you may provide a certified copy of a policy of insurance from an insurance company of your choosing which is acceptable to Landstar. It should provide Landstar approved minimum coverage requirements including:

  • A minimum of $1,000,000 combined single limit for bodily injury and/or property damage.
  • An additional insured clause must read as follows: 
    "The Landstar System, and its wholly owned subsidiaries including Landstar Ligon, Inc., Landstar Inway, Landstar Gemini, Inc., Landstar Express America, Inc., Landstar Ranger, Inc., and Landstar Logistics, Inc. each are additional named insureds with respect to the operation of any covered auto leased to each additional named insured."
  • Additional insured must be given a minimum of 30 days notice for nonpayment, cancellation or non-renewal on the specified equipment augmented to Landstar.
  • An endorsement executed by the insurance company that reads as follows: 
    "The insurance afforded by this policy applies when the equipment is bobtailing or deadheading. Bobtail refers to the covered equipment being operated without a trailer attached. Deadheading is defined as operating with an attached trailer which does not contain or carry freight."
  • The certificate issued on your behalf must state that this insurance is primary when bobtailing or deadheading (as defined above), with respect to any insurance carried by the additional insured, and that any "other insurance clause" contained in this policy shall be void and inoperative as to the additional named insured.
  • Territorial limits definition in the policy must include the 48 contiguous United States and Canada.
  • A certified copy of the policy must be submitted and on file with Landstar. Insurance company and/or underwriters must be of acceptable financial strength to Landstar.

Unladen Info

Effective Date – Coverage will become effective on the date you execute your ICOA, unless other acceptable coverage has been procured.

Termination – In the event your ICOA with Landstar is terminated for any reason, the unladen liability insurance coverage for bodily injury and property damage will cancel effective the date of the termination of your ICOA or the earliest date thereafter allowed by law. You are responsible to make immediate arrangements to replace coverage.

Cost and Consent to Rate – The cost to U.S. resident BCOs for obtaining coverage under the unladen liability program is dependent on vehicle type, fifth wheel vehicles or straight trucks, panel vans, pickups and autos as specified in your ICOA with Landstar. Cost may include premium, taxes, fees, interest and administration expenses. Contact your Gallagher insurance specialist at 800.435.0372 to review coverage options and rates. The underwriters retain the right to change the cost of the unladen liability coverage by giving 30 days' notice of a cost change.

Policy Terms and Conditions – You will receive from Gallagher a certificate of insurance. Please review the certificate carefully to be certain that it is correct. A copy of the policy is available upon request.

Authorization of Settlement Deduction – In accordance with your ICOA, your cost for coverage under the unladen liability program, as well as any charge in return for Landstar's indemnification, will be deducted from your settlement check. If your settlement check is not enough to cover your insurance cost, you must forward a check or money order to Arthur J. Gallagher Risk Management Services, Inc., Attn: Transportation Department, 2345 Grand Blvd., Suite 400, Kansas City, MO 64108-2671 immediately, or the coverage will be cancelled, in accordance with policy terms and conditions.