Want to add a truck.

www.OOIDA.com can answer your questions.
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If your standard insurance is $1 million liability then that’s what the family’s victim is going to pursue. If we are talking about a fatal accident.

I worked for small company in Jersey a couple of years ago. The owner had to go to court every 4 months for 10 years...the driver that was involved in the fatal accident no longer works there. But that’s what full authority means, = full responsibility. Limited Liability or LLC doesn’t mean they can’t pursue after your house. A good lawyer will take your leg and arm if he’s really good. It’s only a matter of which side gives up first.

If you pay your driver 1099, then mis classification and worker’s comp will be your biggest problem. If he’s w2, then your insurance will be the biggest problem if he gets in an accident. If insurance shoots up to $70,000 a year, I’d sell everything and start over.

You can ask the same question in Reddit, under /lawyers. They’ll tell you.

 

Read it A $411 million nuclear verdict against single truck company in Florida said to be biggest ever

 

You should definitely speak to a lawyer and join your state trucking association.

 

Just an FYI, there is no limit to what they can sue you for. The insurance is just the limit to what the insurance pays.

having an LLC is useless because you as an owner with bad policies or decision making can put you personally in the cross hairs of a ambulance chasing lawyer and your personal assets can be included. This happens with CEO’s and other officers of a company when they are reckless all the time.

The decision about your driver will be to pay them as a 1099 or as an employee.

a 1099 is an independent contractor, they can legally refuse work or not work at all. You can assign them work to a point but you can’t tell them how to do the job.

an employee is an employee, they can be told what to do and how to do it except when it comes to regulations.

If you go the 1099 path, get a good lawyer who knows how to write a good ic contract, not a trucking lawyer, many of them are worthless.

one thing about 1099, the irs will go after you if you abuse the relationship by forcing them to act like an employee.

Get an accountant and set up the company ledger right. Either path you need capital to pay the driver, so at least 4 months in reserve just for the driver.

Remember you are the responsible party in all of this, not the driver.

 

A good rule of thumb, if one truck is a hassle, 2 more will be twice the headaches. Nowadays, and it's entirely possible, your best driver has a momentry lapse in reason, and you are done for . Today, if you can't make it by yourself, get out.

 

Why did you say " when your driver has a accident" instead of "if my driver has accident" splitting hairs I know and I'm sorry. But I believe in some circumstances we talk things up. Just my two sense

 

That's true, I apologize, it's just, I've heard of drivers with 30 years get in trouble, and it's not like the old days, lawyers today START at a million. I had 35 years with no accidents, but got out because it was bound to happen sooner or later.