QuestionI am currently helping my husband start his trucking company. As of right now we only have his truck and Operating authority for household goods. We are thinking of expanding and leasing owner operators on as well as getting our Property goods operating authority. Could you tell me what is the legal way of leasing owner operators to the company and how do we protect our selves. Also where can i find what is needed on file for the owner operators we lease?
AnswerHi Nikia and thank you for the question.
Let me deal in general terms, with the leasing of owner-operators. I'll do it briefly but feel free to ask specific follow up questions if you need. As the motor carrier registered with FMCSA and owner of the authority, all trucks leased to you are your legal responsibility to direct and control. You'll be required to provide the BIPD and cargo insurance coverage under your company policy. That is because the BIPD and cargo (if applicable) insurance are a requirement for the motor carrier, not the truck owner or driver. You (as the motor carrier company) are not responsible to provide collision or comprehensive insurance to cover damage to their truck.
Additionally, you would be required to conduct the same type of investigation record keeping of their drivers as you would for your own employees or yourself. That would include the driver's record, employment record, etc. Another issue is that you would be responsible to maintain all records including their truck maintenance records in your motor carrier company files. Essentially, when leasing on trucks the carrier is still responsible for everything as the motor carrier company...... almost the same as if you owned all of the trucks. All they do is provide equipment for your company's use.
In reference to obtaining property authority, you can log on to the FMCSA web site file electronically.
http://www.fmcsa.dot.gov/registration-licensing/online-registration/onlineregdes...
or you can obtain the forms from and submit the applications by mail. If you have an MCS-150 on file for your current HHG authority, you'll need to revise it to reflect the change in operations. Additionally, you'll need to file an OP-01 form for each type of authority you want.
Addressing terms and conditions of contracts and lease agreements is unique to each motor carrier's situation and circumstances. You'll need to determine that arrangement for your specific circumstances and goals. There is one thing you can't do in the lease. That is you can not specify terms or conditions that relieve you from lawful liabilities and responsibilities as the registered carrier. So you can't write in any kind of immunity or reassign legal responsibilities and liabilities within the lease terms.
Thanks again for the question and I hope this helps a little. Please feel free to ask additional questions if you want.
..Don
