When an Owner Operator leases on, or contracts to, a Motor Carrier, he needs to provide proof of Liability to the Motor Carrier.
When an Owner Operator leases on, or contracts to, a Motor Carrier, he needs to provide proof of Liability to the Motor Carrier. Some Motor Carriers will ask the Owner Operator to provide NTL, or Non-Truck Liability, and some Motor Carriers will ask the Owner Operator to provide Primary Liability. It all depends on how they’ve set up their contract with you and how you’re compensated by them.
Once that’s determined, you then decide if you want to purchase the Liability from the in-house group plan through your Motor Carrier, or secure your coverage with your own Independent Contractor policy.
The Motor Carrier option will usually withdraw the premium through payroll deduction. The Independent Contractor policy you own usually withdraws the premium through your checking account via electronic funds transfer, or EFT.
With the Motor Carrier option, your premium is based on your group of other Owner Operators leased on to that Carrier with a set level of coverage. If you’re with the Independent Contractor option, your premium is based on your driving record alone and an option of coverage.
Finally, the Motor Carrier option starts and stops with your contract with them. The Independent Contractor option includes portability…you take the policy with you and apply it to whoever you then choose to sign on with at that point or at a later date.
