Trucking: how to run an existing trucking business, sydney metro area, trucking business

Question
hi paul, my name is eddie, im writing to you from sydney, australia. i have tried to talk to people in sydney but everyone gives me a different answer so i thought about looking overseas to see what someone can say and help me with. im a fleet operater and have 8 trucks running local aorund the sydney metro area. the business was running ok for a few years, but in the past few years its getting worse, the money just isnt there anymore. my drivers are contractors as i cant afford to have them as full time employees. seems like all the bills are coming in at once and im loosing money, plus all these damm insurances that i have to pay drivers having accidents its getting to much. am i running the business the right way inregards to having the drivers as contracters?

would love to here from you soon

thanks, eddie

Answer
Eddie I am so sorry for taking so long to get back to you!  I am sorry about your situation!  The trucking industry in the United States is just as bad as in your country. I would have them obtain their own insurance if possible or have their deductibles increased substantially so they have to liable for a large amount of the costs.  Independent contractors usually have to pay their own insurances and even permits-though not all.  By making your drivers to pay for a good chunk of their accidents, that could be a deterrent to future losses.  If drivers know they are going to pay a substantial amount for insurance, they may be more careful and safety conscious.
You may even want to hire a risk manager to give you some financial guidance as to what changes you might need to consider to stay in business. I do believe in sharing the risks of your company with your drivers-there is nothing wrong with that especially in this global economy! If you are paying for some of their maintenance costs I'd reconsider that as well. Since they own their trucks, they ultimately should be responsible for their equipment. Do you have a Safety Department?  Maybe they are not maintaining their truck to save money which could be a reason for some of these accidents... I would, in the end, reconsider your hiring practices and think about hiring qualified drivers that drive your equipment if you have that option.  Maybe you can
lease your trucks from Penske or other large fleets where you pay them directly to lease their trucks and they have maintenance shops and fuel. Your exposure is diminished and with advice from a risk manager and others, it maybe the best option. Hope this helps!  Not sure about Australian bankruptcy laws-it is a viable option here where you can start on a clean slate and recover in decent shape, depending on your situation and the laws there!