Maybe the question in the title is the wrong way to put it.... I'm a recently from law enforcement (or should I say looking for a career change, lol) officer. I've been looking at LTL for the past few months, and spent some time today reading through the forums. Wonderful site, with great people. Thank you. I'll save where I'm at in my thought process for another thread. But I have a question I can't find answered either here or elsewhere. I have a friend that does some LTL, with the one ton pick up and enclosed trailer rig. He is running his own authority. I'm not looking to get into this full time, possibly a few weeks a month, 6-8 months a year. And I completely understand the phrase "no part time insurance". Is it possible for me to "lease on" with him, and run under his authority AND insurance with my own truck? Similar to what O/O do with larger companies. I'd do my own thing, finding my own loads. But he'd be compensated. Or is there another laborious and expensive step for him to do that since he doesn't own the rig/truck I'd be using. What's the process? The advice I found here shows that the knowledge is also here, so forgive me if I posted in the wrong section. These are the type of questions that will lead me to wherever it is that I'll end up! Anyone have any info or guidance?
Welcome aboard Toasted wheatie ! Yeah you can have your own truck and lease on and use his authority. The insurance angle can be worked out, but you must insure your own truck. You say "LTL" but then mention a pick-up truck and cargo trailer. Curious, what freight he hauls ? ? ? As an owner/operator, you can work when you want, just know your insurance and truck payment etc will still be ongoing while truck is parked.
Thanks! Not sure what he's hauling now. We had discussions several months ago about this, and last I heard he's been chasing Uship loads. I think mostly autos, bikes, etc. Wouldn't surprise me if he was grabbing the occasional pooch also, lol. Not exactly where I would go, but maybe he's having fun. I'm leaning toward a straight truck. I was just wondering if we could reduce the commercial insurance costs this way, as opposed to being separate.
He will be responsible for the "safety" and "operation" of your truck, meaning according to the DOT, he will have to carry the cargo and public liability insurance on you, you will carry non-trucking liability, physical damage (collision), etc. Everything you do will reflect on his DOT/MC numbers, he will have to "qualify" you as a driver (background check, application, MVR run, etc), and put you in his drug testing program (if you go with a cdl vehicle). For him as the motor carrier it is almost as much cost, work and risk as hiring an employee driver, they only place he saves is the cost of owning, maintaining, and fueling your truck and they payroll taxes. He as the carrier will have to assume all legal liability for what you do, and will legally "own" the invoice for what you haul, meaning the money should go through his account before he pays you. To be legit in using his MC/DOT numbers you will have to enter into a compliant leasing agreement (section 376). The risk is high for him as the carrier so expect to pay him up to 20% of your gross and maybe the increase in his insurance premiums for having another truck his carrier is legally responsible for. He will have to maintain all the same files, reports, and paperwork on you as a "driver" and your truck in the same manner as if he owned it and employed you, including copies of your log book, inspection reports, fuel taxes, NY HUT, etc. Personally I would not do this as a carrier, even when my baby brother wanted to get back into car haul after 6 years as a corrections officer I would not lease him onto my outfit, I helped him get his own authority and feed him work, but will not assume any liability for a truck/driver I do not own and control. I only do company drivers or full independent sub contractors, no lease operators.
