First time adding an owner operator

I personally wouldn’t do it. I don’t plan on expanding so that is why.

ask yourself this question, are you ready to have your whole life turned upside down because someone leased to your company creates a problem on the road that causes a serious crash. In other words do you trust them enough to put your life on the line. Then and only then you can make that decision.

 

If I brokered a load to your authority, I expect it to be your insurance responsible. I also would verify the name on the door is your authority name. If I found out this owner op doesn’t have the authorities insurance liability and cargo then I would take the load back and black list you as double brokering.

I have trucks, owner ops, and brokerage so I’m familiar with this.

 

Don't you love carriers that lease on someone with their own insurance?

 

To run under MC # the BOC filing for cargo has to be for the MC #, right?
@Midwest Trucker is right.

 

Liability, cargo isn't required by the FMCSA anymore. But only a fool would load someone without cargo.

 

www.ooida.com they’ll also answer a ton of these questions.

Meanie!!



Oh, and it’s a shame double brokering happens on commodities, a lot of brokers double or triple broker hopper freight, that’s why you gotta really be careful or someone else gets 3/4 pie.

 

This should help you, it is a link to Part 376 of the FMCSRs. This is the set of regulations that control exactly what you can and can not do with a leased on owner operator. Your contract must include and address everything contained in these regulations.

eCFR :: 49 CFR Part 376 -- Lease and Interchange of Vehicles

I also strongly suggest you get a different insurance agent as he is giving you bad advice, or perhaps not explaining what his advice is clearly enough. Simply put, you are required by regulation to provide the public liability portion of the insurance. You can charge back to the owner operator for the cost but it must be your policy. The MCS-90 has language that forces the insurance company to cover any vehicle displaying your US DOT number on your policy even if it isn't listed, and if you do as your agent suggests the owner operator vehicle(s) will not be declared (listed) and that violates your policy. This means if there is a loss, they will be forced to pay it by law then sue the crap out of you in court to recover their payout. Best part is the leased owner operator's insurance will deny the claim because they (they owner operator) was not the authorized operating carrier at the time of the loss.

Here is the small part of 49 CFR 376 that requires you, the motor carrier, to provide the public liability insurance. Read it carefully.

Insurance.

(1) 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. 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. 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.
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