How should I insure owner-operators hauling aggregate for my company?
Commercial insurance broker
Owner-operators hauling aggregate for your company should be insured under a structure that clearly defines who is responsible for liability, physical damage, and injuries, and that structure needs to be backed by written agreements. Getting this wrong is one of the most common sources of coverage problems for aggregate haulers.
The details depend on whether the owner-operator runs under your operating authority or their own. When an owner-operator is leased onto your authority, your auto liability policy is typically involved while they're operating on your behalf. The owner-operator often carries non-trucking liability for personal use, physical damage on their own truck, and occupational accident coverage or workers' compensation, depending on the arrangement and state.
When an owner-operator runs under their own authority, they generally carry their own primary auto liability, but plaintiffs frequently name the company that hired them anyway. You'll want to verify their coverage, require appropriate limits, and be named as an additional insured where possible. Your own policy may also need hired and non-owned auto coverage or contingent coverage.
Classification matters too. If owner-operators are treated like employees in practice, you may face workers' compensation and employment exposure. Underwriters will also expect you to apply the same driver qualification standards to owner-operators as to company drivers.
Review your agreements with your broker and an attorney familiar with transportation law.