1099 liability

Discussion in 'Ask An Owner Operator' started by ghostcookie, Dec 13, 2021.

  1. ghostcookie

    ghostcookie Bobtail Member

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    Oct 20, 2018
    Tennessee
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    Howdy folks! I got a call from an OO whos retiring. He hasn't sold his truck yet and would like to hire a driver (on a 1099) to run the rig. My question is around liability: if I take the offer to run a rig thats owned by someone else and leased on with a company (renting the trailer and use of their load boards), am I liable for anything? I mean liable for the load, liable for property damage or injuries if I get in an accident, etc. The rig would have insurance, I am wondering if somehow I can get sued as my own entity in a worst case scenario. Just trying to understand what I may be getting in to. Its always good when is good--its the bad stuff Iam trying to look out for! Thank you for your thoughts. Merry Christmas!
     
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  3. Ridgeline

    Ridgeline Road Train Member

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    Yes you are liable.

    you are a contractor and in control of the truck so you carry the same liability as any contractor.
     
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  4. RunningAces

    RunningAces Heavy Load Member

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    Yes and in a civil court you'll get butt ####ed by a billboard lawyer as they go thru six months of logs to find every little thing to make you look like an unsafe monster.
     
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  5. ghostcookie

    ghostcookie Bobtail Member

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    Oct 20, 2018
    Tennessee
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    So is there insurance I could look in to or is an umbrella policy it?
     
  6. REO6205

    REO6205 Trucker Forum STAFF Staff Member

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    Yes there is. But try not to have a heart attack when you see the cost.
     
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  7. BennysPennys

    BennysPennys Medium Load Member

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    Get all of your standard truck and trailer liability, property and causality insurance to protect the truck and trailer. If you are personally worth millions, like 10 or more million then look at a personal liability umbrella policy.
     
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  8. Dale thompson

    Dale thompson Road Train Member

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    Spend some money on an attorney and have an actual contract that defines your responsibility and compensation with…..wait for it…….wait for it an end date. I would recommend not longer than 6 months then you have a definite time frame to renegotiate.
     
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  9. TallJoe

    TallJoe Road Train Member

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    I used to work for a friend of mine - owner operator on 1099. He leased the truck to a small carrier from which he also rented the trailer.
    1. Your personal liability is exactly the same whe you are hired on W-2. The carrier must put you on their auto liability and the o/o on the bobtail liability when you drive when not dispatched.
    If you have an accident and you are at fault, you are covered by their auto liability or the bobtail liability. The same way you are covered when hired on W-2. If your liabilities exceed 1 000 000 and your personal assets are substantial enough, they may want to get a piece of it too.
    The personal umbrella up to a million is a few hundred per year but I am not sure how it would apply if you are liable for something at work.

    2. You may not have workers compensation, so make sure that you are provided at least an occupational insurance which in case of at work accident you are covered to some extent.

    3. As far as your your liability for the truck and trailer and cargo that's covered by the o/o or the carrier with his physical damage and cargo insurance.

    Simply speaking, the only real difference is between the workers compensation and occupational insurance and how you pay your taxes.
     
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  10. ghostcookie

    ghostcookie Bobtail Member

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    Oct 20, 2018
    Tennessee
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    That's a good idea. I don't thin
    So technically i might be better off if I owned the rig than to be an independent contractor hired to drive?
     
  11. 86scotty

    86scotty Road Train Member

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    If it were easy or cheap everyone would be doing it.....
     
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