Insurance running under someone's authority.

You really can't run under someones authority without being leased on. In order to be covered under their authority they have to have control of your truck, which is done via lease.

Trip lease, though not all that common, is still sort of done today. Although you no longer need to have a signed lease in the truck unless the carrier is actually using our authority I still use the principles of trip lease to sub contract my overflow work to to other regulated carriers. Should they not have the appropriate insurance or operating authority I can execute a trip lease for a short duration to allow them to run as if they were one of my trucks. I do not like doing this since I then assume full liability for their behavior, including their roadside inspection defects, accidents, and such. Most carriers just use the principles of interlining as I outlined above to cover overflow.

Yes, trip leasing was used prior to deregulation as a way around the restrictions on routes put in place by the ICC. It was stupid that one carrier could haul product from NY to MI but could not haul from MI back to NY while another carrier had the exact opposite restrictions. They would partner up and make real good money since the rate tariffs were structured to allow the trip to be profitable even running empty one way.

 

Looking for the company to run trucks under their authority.
Please respond.

 

Go do some homework. This isnt how you go about finding a lease arrangement.

 

There are not a lot of legal short cuts these days. To run under someones authority, you will have to be like any other OO, and they have to keep a driver qualification on you, drug test you before you crank up, their name and numbers on your truck, etc,etc.
Many small companies will not even do it anymore, because too many drivers work with some crooked brokers and hauled freight without running it through the carrier, to keep a percentage of the percentage the carrier charges, seen it many times and when something goes wrong the carrier is on the hook.

 

Thanks for mentioning this. We are a new company - almost 2 years old. We have Authority but have only been running our own truck. Now we are looking to have others lease on. I had not considered that Owners may do some underhanded dealing like this. Good to know. Our business model and lease agreement requires all loads come through our company and use our factoring service. If you know of any practices that would protect against those "ghost loads" I would really appreciate you sharing. Thanks again.

 

Can you purchase your own insurance if you run under someone else's authority?