MC and DOT Question

http://www.fmcsa.dot.gov/

Here is the best place to start.

 

If you want to have a dispatch service you don't need motor carrier authority. You will operate under their authority. The feds don't require anyone with authority to own trucks. Insurance companies usually want you to have at least one truck listed. If you get motor carrier authority you will be a motor carrier. There are certain things you will need to do in order to be complaint and maintain your authority. With a dispatch service the truck owners operate under their own authority. When you lease trucks under your authority the owners don't need authority since they operate under yours. If you only dispatch trucks operating under their own authority they are responsible for all compliance issues, such as drug testing, logs, etc., If you operate under your own authority and lease trucks under your authority then you are responsible for paying their liability insurance, cargo insurance, drug consortium and all other compliance issues.

 

Question about lease-on. We currently have a handful of trucks that we own and operate under our MC#. We are contemplating letting a friend lease on to us who would rather have access to our loads than go at it on his own. The way I understand it is he would have his own company (LLC) established that owns his truck, but then he would be leased and operate under our authority and at our direction. We would be responsible for drug-consortium, adherence to FMCSA guidelines, keeping him loaded, etc, but he would pay for his fuel, maintenance, repairs, insurance (GL, Cargo, Auto) and name us as an additional insured. Are my assumptions correct?

 

Your motor carrier insurance will have to include him under your policy, it would be the same as adding another truck of your own, with the exception that he should carry his own collision damage, that would cover his own damage to his tractor and or trailer, be sure to consult your insurance agent before you get to carried away, they can give you the details, you will then have a better perspective for the monetary portion of the contract that you would have with the Lease Operator.

 

Thanks for the advice! I will bounce this off our ins. agent for sure.