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the cost of this insurance is to be deducted from the
compensation due to the owner-operator. Moreover, the owner-
operator agrees to furnish insurance known as “bob-tail”
insurance, pertaining to the operation of the tractor without a
trailer. The terms of the agreements may be terminated by either
party upon short notice.
Interstate is a trucking company or a freight forwarding
company which transports goods from one point of origin to
another point of origin. The company owns no trucks and
contracts with independent contractors to perform the services.
The operations of Shipper’s Transport are similar.
An owner-operator is a service provider who either owns and
drives his own truck or owns more than one truck and hires other
drivers to drive one or more of them. In order to provide
services to a carrier, an owner-operator must enter into a
written agreement and qualify under various safety provisions
dictated by the carrier, its insurance carrier, and government
regulations. For example, Interstate offers insurance coverage
to owner-operators that it uses. The insurance coverage offered
by Interstate is effective only while the owner-operator is
driving for the company. If an owner-operator is driving his
tractor providing services to another company without the
authorization of Interstate, the insurance provided by the
carrier will not be effective. The trucks belonging to the
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Last modified: May 25, 2011