Owner-Operator Truck Accidents
Many truck drivers are owner-operators who lease their trucks to a motor carrier. Trucking companies sometimes argue they are not responsible for these drivers. Federal leasing rules generally give the carrier exclusive possession, control and responsibility for a leased truck operating under its authority, which usually keeps the carrier liable.
What is an owner-operator?
An owner-operator owns or leases their own truck and either runs under their own operating authority or leases themselves and the truck to a motor carrier. When leased on, the truck operates under the carrier's USDOT number, which must be displayed on the vehicle (49 CFR 390.21).
Why is the carrier usually liable?
Federal leasing rules require the lease to state that the carrier has exclusive possession, control and use of the equipment and assumes complete responsibility for its operation for the lease period (49 CFR 376.12(c)(1)). Courts often rely on this to hold the carrier responsible even when it calls the driver a contractor.
How does insurance work for owner-operators?
The carrier's liability policy normally covers the leased truck. Interstate carriers' policies must carry the MCS-90 endorsement, which guarantees payment to injured members of the public up to the federal minimum even in some situations where the policy would otherwise not apply. The owner-operator may also carry their own non-trucking or bobtail coverage.
Frequently asked questions
Is the trucking company liable if the driver was an owner-operator?
Usually. Federal leasing rules give the carrier exclusive control of and responsibility for a leased truck operating under its authority.
What is the MCS-90 endorsement?
A federally required endorsement on interstate carriers' liability policies that guarantees injured members of the public are paid up to the federal minimum, even in some cases the policy would otherwise exclude.
How do I know which carrier the truck was working for?
Check the USDOT number and company name on the truck's door, the police report, the lease agreement and the bill of lading.
What is bobtail insurance?
Coverage an owner-operator may carry for driving the truck without a trailer or outside a carrier's dispatch. Which policy applies depends on what the driver was doing at the time.
Can I claim against both the owner-operator and the carrier?
Yes. Both can be named, and doing so helps make every applicable insurance policy available.