So I started a llc back in January. The plan was to lease-to-own a truck from a local small company (he has 20ish trucks leased under his authority & half of those he bought or helped finance their trucks & they paid him payments until paid in full). I was set to do the same & hired a driver (immediate family member). My driver was driving his truck for a few weeks to build up a little extra revenue for money down on a truck. I pay my driver with a W2 & all was going well... until the company owner was no longer able to fulfill his part of the agreement (due to lack of truck placement options). So getting a truck for me would do no good if he didn't have work for my guy/truck.
So one of the trucks under him needed a driver & we put my driver in his truck for now. This truck owner wants us to sign a contract & requires business liability insurance from me for $50,000... that I understand.
I know he gets his liability insurance from the company with the authority since I was anticipating the same. The way it is worded makes me think it is requiring insurance to cover the semi.
Since my driver is not his employee he is paying my company via 1099 & I pay my driver W2. Is this a normal thing for a truck owner to require this? I have only ever dealt with being a sole proprietor as an O/O & then I paid my own semi insurance.
"Expenses: Truck Owner shall be responsible for all insurance, permits, and licenses required to operate the Truck. MY TRUCKING COMPANY NAME LLC will be compensated for maintenance downtime, limited to the amount of maintenance performed.
Liability and Insurance: Driver shall be liable for any damage or loss caused to the Truck while in their possession unless such damage or loss was caused by the negligence or intentional misconduct of Truck Owner or its agents. Driver shall carry liability insurance covering their use of the Truck, with minimum coverage of $50,000 per accident."
Anyone offer and advise?
Can I lease out my driver?
Discussion in 'Ask An Owner Operator' started by Trying to make it work, Mar 17, 2023 at 4:59 PM.