Another running under my Authority

BY LAW, YOU AS THE COMPANY HAVE TO PROVIDE THE LIABILITY INS. ON ALL TRUCKS LEASED TO YOU. IF HE GETS A BAD INSPECTION, IT GOES AGAINST YOUR SAFETY RATING, NOT HIS. IF I WAS YOU I WOULDN'T GO THIS ROUTE , TOO MUCH LIABILITY. IF HE HAS AN ACCIDENT, YOU OPEN YOUR COMPANY UP FOR A LAWSUIT, ETC.

 

thats what insurance is for.


but don't put someone on because they are a "buddy" if they aren't qualified and responible

 

now its true you have to have liability insurance to any vehicle leased to you by law, but your buddy has to have the insurance any way to operate , you can take out liabity for him or add him to your poicy and charge him for it he has to pay anyway to operate legaly.

but thats the only way you can do it , if you dont it could put you out of business and worse if there is an accident envolves.

course you can run without it if you run independent BUT you woulld be taking one helluva chance and that would put you ut of business, just not worth it those days im afraid are overwith.-

best of luck to you.----southernpride

 

the whole point of running your own authority is that it moves you from the owner operator status into the Carrier status.... Why would you get your authority and be afraid of being a carrier????? when you get down to the brass tacks of it there is more money and less liability in leasing on trucks then owning your own

 

Liability insurance DOES NOT have to be in the name of the MC holder, Cargo insurance does..He can runhis own plates, Liability ins., and IFTA You have to provide cargo. You also have to have all documents of his being an employee which includes application, drug screen, and you have to have him registered with someone for random screening.

 

Just as 5mouths stated, you only have to provide cargo BUT you must be named as loss payee on his policy. I have a truck leased to me and am working the bugs out of the scenario in hopes to add more lease trucks when the market improves. All of the jobs get billed through you so you have to do all of the billing, accounting etc. This comes with a price. I am charging 15% for my authority. Everywhere I have checked it seems very reasonable to do so but I do not provide a trailer either. Most of the companies you can lease on to chage as much as 15% for their trailer too. I dont want noe can I afford the expense of buying trailers for leasees so they can either buy one or rent one. My plan is not perfect and is still a work in progress but I think it will give you an idea. I certainly wouldn't shy away from an opportunity for more income though it does require more work on your end as well.