It's recently come to my attention that there could be some confusion regarding Owner Operators and Motor Carriers regarding insurance and how it applies to each entity.
It’s recently come to my attention that there could be some confusion regarding Owner Operators and Motor Carriers regarding insurance and how it applies to each entity.
When you have Primary Commercial Auto Liability, Progressive will pay the Named Insured (Owner Operator) and does NOT search for coverage elsewhere first.
In addition, when an Owner Operator lists a Motor Carrier as Additional Insured on his insurance policy, that M/C also receives first dollar defense in the case of a claim.
All Additional Insureds receive direct notice of cancellation from Insurance Companies via a snail mail letter. (In the case of my agency, CIS, we take that a step further and promise 3 day PRIOR notice of cancellation to Additional Insureds and email these notices daily to the respective Safety Departments of each Motor Carrier as needed.)
There are 2 different types of contracts an Owner Operator can set up with a Motor Carrier. The more traditional M/Cs will require that you agree per contract that you are hauling for them exclusively.
Other M/Cs will allow you to haul for more than one M/C, so you are leased on to two or more M/Cs at the same time.
The point here is to read and understand and respect your contract. If you have signed with a Motor Carrier that requires exclusivity, then honor that contract.
Under no circumstance whatsoever should you be hauling a load for one Motor Carrier with another Motor Carrier’s sign, logo or MC number on your unit.
There are changes in how Motor Carriers are structuring their Owner Operators due to the Independent Contractor Status talks buzzing about, but understanding your current contract and responsibly operating within that contract is an ethical issue that everyone needs to acknowledge and follow in our Expediting Community.
I encourage any questions on this subject to my email [email protected]
