Independent contractor trucking insurance starts with the contract.

You may own the truck, pay the fuel and handle the driving while working under a motor carrier's authority. Or you may be a contractor for a delivery company with a different vehicle and route agreement. In both cases, independent contractor trucking insurance starts with the contract. It should identify who is responsible for the vehicle, liability, cargo, deductibles, driver injuries and certificates.

Labels such as “independent contractor,” “leased-on driver” and “owner-operator” can describe different arrangements. Read the insurance section and ask questions before signing. A carrier may provide primary liability during dispatch while you still need physical damage, cargo responsibility or non-trucking liability. Another contract may require you to carry primary liability yourself.

Contingent liability is generally a backup concept. It is intended to respond in certain situations when a contractor's required auto liability is unavailable or insufficient, depending on the policy. It is not a substitute for the contractor carrying the primary limit required by law, a lease or a shipper contract. The carrier should know exactly what the policy does and does not do.

Non-owned auto liability is another separate concept. It may address an organization's liability arising from vehicles it does not own, subject to the policy and use. It does not automatically insure the contractor's truck, replace the owner's physical damage coverage or provide the contractor with a personal auto policy. Ask how the form applies to the actual vehicles and people in the arrangement.

An independent contractor may be offered occupational accident coverage for selected benefits after a work-related injury. Occupational accident is not workers compensation. The two arrangements have different legal structures, benefits, eligibility, claims processes and policy terms. Do not treat a contractor occupational accident plan as proof that an employee workers compensation obligation has been met.

Ask who is eligible, what medical or disability benefits are available, what exclusions or waiting periods apply and who pays the premium. Ask whether the contract requires the coverage and whether the carrier makes a deduction. If you have employees as well as contractors, review the employee classification separately with the agency and carrier.

Contract status does not remove the need to discuss the truck and freight. Physical damage can protect scheduled equipment against covered collision, theft, fire or weather. Motor truck cargo can address covered loss or damage to freight in your care, custody or control. A carrier may cover one of those exposures during dispatch and leave another to you.

If you move between carriers, change from lease-on to your own authority or start accepting outside work, update the program before the first trip. The same truck can require a different policy structure after the business relationship changes. Keep copies of each lease and current certificate, and tell the agent when a contract or route changes.

Kaufman Insurance Group is the independent agency behind Trucking Insurance Experts. We can organize the insurance questions in your contractor agreement, discuss available options and explain where the carrier and contractor responsibilities may meet. Availability depends on the operation, vehicle, contract and underwriting.

Send the lease, certificate request, vehicle information, cargo, driver details and any occupational accident requirement through the quote form. If the language is confusing, call and talk it through. A short review before you sign can make it easier to spot a missing limit or a responsibility you thought belonged to the other party.