QuestionHello,
Thanks in advance for your time. I am starting a car hauling business with a
1 ton and wedge trailer etc. I have a friend who wants to run under my
authority with his own truck and trailer to haul cars that I locate for him. I
understand that I can do this with my insurance etc. We would make our own
agreement on miles, pay etc. What is typical for his responsibilities in cost
and permits etc. Any help or direction would be very helpful. Can I also pay
him other than an employee. Thanks for you help.......Jamie
AnswerJamie,
As the motor carrier you are responsible to provide the Auto Liability and Cargo for all owned and operated vehicles under your authority while under dispatch or load.
If you lease on an owner operator typically you will charge back to them the cost of the Auto Liability and Cargo Insurance plus charge them a percentage of each load you dispatch them this can be any where from 9-12% depending on what permits and other services you provide for them such as the IFTA fuel tax and IRP registration plates, UCR, and New Mexico WDT. Most of the mentioned permits are required if you operate vehicles that exceed 26,000 lbs.
You may also consider building up an escrow account of two months from each owner operator to cover the insurance just in case the owner operator does not run for a month or so but does not cancel his lease with you.
You want to require the owner operator to carry their own non-trucking auto liability (bobtail) which protects them if they cause bodily injury or property damage to others when they are not under dispatch or load. They also need to carry their own physical damage to protect their truck and trailer.
Also you will be responsible for maintaining all the DOT rules and regulations such as driver folders, maintenance folders, safety, log books hours of service etc for the drivers and vehicles.
I offer trucking consulting and insurance quotes at www.dotnumber.net
Best of luck to you.
Marc
