Question
The company I work for is looking to lease on a driver who is paying for his own insurance. Can we just be named as additionally insured on his policy or do we need to insure him ourselves if he is leased to us?
Thanks,
Eddie
Answer
Eddie,
You've got me confused. A driver? Or an Owner-Operator?
Answer
Eddie,
If he is leased to your company (the carrier), the CARRIER must carry the policy in their name.
What type of insurance? There are many!
If he has primary liability, then he has his own authority already. One can't obtain primary liability insurance without authority....... unless he is hauling exempt commoditiesBen Franklin
Answer
Sorry, I meant lease on an owner/operator. So the insurance must be in our name? That makes sense but I figured I would ask anyway. He does already have his own authority but he is not so good at finding freight.
So we need to provide the primary liability and cargo insurance, and what does he need to have?
Eddie
Answer
As far as adding another truck to an existing policy, is it as easy as calling up the insurance agent and telling them you have another truck? Sort of like the way car insurance works? Then they just prorate it for the year?
Eddie
Answer
You can sign on the owner-operator, but keep in mind that you will be adding him for Liability and Cargo. If he has his own authority, he's already paying for this coverage. There is no need for duplication. Discuss this with him. If he will be running exclusively under your signs and the lease specifies the same, then he may not need his Liability and Cargo or his authority.
Something to think about.