Leasing On Trucks to operate under our Authority

Feb 27, 2017 at 04:14 PM CST + 2 - 2
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. Just curious. I currently drive truck and may hire on a driver who would take over my truck. I have worked in Logistics for 15 years. I would then dispatch full time. We own two trucks and trailers. So, I am considering leasing on trucks, in order to grow income and stay busy during the day. I would find the loads, dispatch the drivers, supply fuel cards, pay and get reimbursed for required insurances and plates. In talking to drivers on the road, a lot of guys are unhappy with the "brokers" they are running for. That broker will only dispatch them on their freight and it causes quite a lot of dead head. Are there drivers out there that own there that own trucks and trailers that would be interested in this type of set up? Thank you for any feedback.

Replied on Mon, Feb 27, 2017 at 07:43 PM CST - 1
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. Just remember when you start hiring drivers, that you will have to legally have workman's comp and that can be anywhere from 12% to 25% of gross revenue. We thought about hiring a driver but got quoted 14% of gross for workman's comp. Which according to my agent was cheap as she had insured a lot of people for around 18% to 20% of gross.

Replied on Tue, Feb 28, 2017 at 06:00 AM CST + 1
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. Well, I appreciate that feedback. I now know that I will have to start looking into rates on Work Comp.

Replied on Tue, Feb 28, 2017 at 06:38 AM CST + 1
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. There is another insurance and it's cheaper occupational harzard insurance which I got through OOIDA

Replied on Tue, Feb 28, 2017 at 08:01 AM CST - 1
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. Really. What kind of insurance is it? I really need to check out their web site. I have never used, or called them for services. I appreciate this information.

Replied on Tue, Feb 28, 2017 at 09:42 AM CST + 1 - 1
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. I have several leased trucks over 50 and in the state of Texas you can by law waive the workman's comp , we have been in business over 15 years and still growing . So I believe it's a great way to keep both sides of the fence happy , rather than ins. We offer a substantial bonus at the end of the year.

Replied on Tue, Feb 28, 2017 at 11:40 AM CST
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. Workman's comp usually is figured off drivers gross wage not the gross revenue. It can be as low as 12% if you have a good record with your insurance company. If you have a claim on Workman's comp and then they will send you to the insurance pool and then it will be considerably higher.

Replied on Tue, Feb 28, 2017 at 08:29 PM CST - 1
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. Quote: "Workman's comp usually is figured off drivers gross wage not the gross revenue. It can be as low as 12% if you have a good record with your insurance company. If you have a claim on Workman's comp and then they will send you to the insurance pool and then it will be considerably higher." You are right. I misworded it earlier. It is just one expense some people don't realize they need when they hire drivers. It adds up though. If your driver makes $150 day, which I would consider the bare minimum a driver should be paid, times 5 days a week and at 12% it would be atleast $400 a month per employee. Which is about $4800 a year. This is all calculated using a low pay figure. Now if you were making $200-$300 a day being a driver the numbers get pretty high for workman's comp. That is if you can get it for 12%. Now imagine if you have to pay 18%-20% or more, which won't be long because the way the work force is, you will more than likely have an employee get hurt or hurt themselves just so they can collect workman's comp. Unless you get lucky enough to find good drivers that wouldn't do that to you, but then again if you find good drivers like that, they will want top wage also. Just my two cents. Good luck out there everyone!

Replied on Tue, Feb 28, 2017 at 08:29 PM CST

- 1

Posted by a private BulkLoads.com member.

Quote: "Workman's comp usually is figured off drivers gross wage not the gross revenue. It can be as low as 12% if you have a good record with your insurance company. If you have a claim on Workman's comp and then they will send you to the insurance pool and then it will be considerably higher."

You are right. I misworded it earlier. It is just one expense some people don't realize they need when they hire drivers. It adds up though. If your driver makes $150 day, which I would consider the bare minimum a driver should be paid, times 5 days a week and at 12% it would be atleast $400 a month per employee. Which is about $4800 a year. This is all calculated using a low pay figure. Now if you were making $200-$300 a day being a driver the numbers get pretty high for workman's comp. That is if you can get it for 12%. Now imagine if you have to pay 18%-20% or more, which won't be long because the way the work force is, you will more than likely have an employee get hurt or hurt themselves just so they can collect workman's comp. Unless you get lucky enough to find good drivers that wouldn't do that to you, but then again if you find good drivers like that, they will want top wage also. Just my two cents. Good luck out there everyone!

Replied on Fri, Mar 03, 2017 at 10:28 AM CST
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. Quote: "I have several leased trucks over 50 and in the state of Texas you can by law waive the workman's comp , we have been in business over 15 years and still growing . So I believe it's a great way to keep both sides of the fence happy , rather than ins. We offer a substantial bonus at the end of the year." I am interested...my son-in-law drives for us and I am told I have to carry Workman's Compensation. How do you waive Workman's Compensation? Thanking you in advance for any information you can provide.

Replied on Fri, Mar 03, 2017 at 10:28 AM CST

Posted by a private BulkLoads.com member.

Quote: "I have several leased trucks over 50 and in the state of Texas you can by law waive the workman's comp , we have been in business over 15 years and still growing . So I believe it's a great way to keep both sides of the fence happy , rather than ins. We offer a substantial bonus at the end of the year."

I am interested...my son-in-law drives for us and I am told I have to carry Workman's Compensation. How do you waive Workman's Compensation?

Thanking you in advance for any information you can provide.

Replied on Fri, Mar 03, 2017 at 09:23 PM CST
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. Quote: "I am interested...my son-in-law drives for us and I am told I have to carry Workman's Compensation. How do you waive Workman's Compensation? Thanking you in advance for any information you can provide." He must not have them leave Texas. If he did, legally he would have to have workmans comp. Only way I have found to not have to have workmans comp is to be owner of the company. I think in Nebraska they say minimum 10% ownership is required to not need workman's comp. I don't know if that is a Nebraska thing or nationwide. I was gonna check into it because my wife was thinking about getting her cdl and driving tag team with me when elogs go into effect.

Replied on Fri, Mar 03, 2017 at 09:23 PM CST

Posted by a private BulkLoads.com member.

Quote: "I am interested...my son-in-law drives for us and I am told I have to carry Workman's Compensation. How do you waive Workman's Compensation? Thanking you in advance for any information you can provide."

He must not have them leave Texas. If he did, legally he would have to have workmans comp. Only way I have found to not have to have workmans comp is to be owner of the company. I think in Nebraska they say minimum 10% ownership is required to not need workman's comp. I don't know if that is a Nebraska thing or nationwide. I was gonna check into it because my wife was thinking about getting her cdl and driving tag team with me when elogs go into effect.

Replied on Sat, Mar 04, 2017 at 07:53 AM CST
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. I believed to wave workman's comp have to be self- insured

Replied on Sat, Mar 04, 2017 at 09:22 AM CST
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. I would be interested in leasing on. I have my own truck and trailer. What areas are you going to run? What are you looking to have as your lease package?

Replied on Sat, Mar 04, 2017 at 12:40 PM CST
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. You will only need workmans comp on the drivers driving trucks that you own. Aleased truck is considered a Independant Contracter,Workmans Comp will be up to them.

Replied on Sun, Mar 05, 2017 at 08:27 AM CST + 1
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. Eric, We run wherever there is good paying freight. We book our own loads with numerous brokers. It would be nice to talk, when you have a chance you could give me a call. Number is 573-880-2219. Thank you, Pam.

Replied on Sun, Mar 05, 2017 at 10:26 AM CST
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. YOU CAN GET OCCUPATIONAL INSURANCE IN LUIE OF WORKER COMPENSATION, FIND NASTC - NATIONAL ASSOCIATION OF SMALL TRUCKING COMPANIES AROUND NASHVILLE, TN, I OWN TRUCKS AND HAVE SOME LEASED-ON DRIVERS AS WELL. I AM CHOOSEY ABOUT MY LEASED ON DRIVERS AND IT WORKS WELL OF ME. I CHARGE ON A LPERCENTAGE BASIS, HOW ARE YOU GOING TO CHARGE?

Replied on Sun, Mar 05, 2017 at 12:55 PM CST + 1
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. I was going to charge on a % also. Just not sure what the average rate would be???

Replied on Mon, Mar 06, 2017 at 03:08 PM CST
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. Pam, a number of years ago I worked with other people (trucks) to get my work load accomplished as I didn't personally own enough equipment. We stopped doing this as at least where we are we had no way to stop someone from back soliciting our work. Several of these people did just that and then I didn't need or want outside trucks anymore. The last I checked with my attorney there isn't a non compete non disclosure that will hold in court. It pertains to right to work laws and all sorts of language that I don't remeber exactly. Obviously there are a number of people on this forum with better luck than I running lease trucks. When we had our race team however we could do a non compete non disclosure and back it up because we were dealing with proprietary knowledge. There is very little in transportation that would be in that list today. Good luck and I hope you have a better experience. Art Pfluger

Replied on Mon, Mar 06, 2017 at 03:08 PM CST

Posted by a private BulkLoads.com member.

Pam, a number of years ago I worked with other people (trucks) to get my work load accomplished as I didn't personally own enough equipment. We stopped doing this as at least where we are we had no way to stop someone from back soliciting our work. Several of these people did just that and then I didn't need or want outside trucks anymore. The last I checked with my attorney there isn't a non compete non disclosure that will hold in court. It pertains to right to work laws and all sorts of language that I don't remeber exactly. Obviously there are a number of people on this forum with better luck than I running lease trucks. When we had our race team however we could do a non compete non disclosure and back it up because we were dealing with proprietary knowledge. There is very little in transportation that would be in that list today.
Good luck and I hope you have a better experience.

Art Pfluger

Replied on Mon, Mar 06, 2017 at 09:08 PM CST
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. The only way to waive W/C is if you are an owner and you can prove that by investing at least 15% of the company. I may be off a bit on percentage, but don't think you can replace w/c with occ ac for the same reason...

Replied on Tue, Mar 07, 2017 at 01:35 PM CST - 1
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. Quote: "There is another insurance and it's cheaper occupational harzard insurance which I got through OOIDA " What is the price. For that ??same or cheaper than workers comp

Replied on Tue, Mar 07, 2017 at 02:26 PM CST + 1
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. OOIDA charges $144.00 a month...

Replied on Wed, Mar 08, 2017 at 07:27 AM CST - 1
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. If you are an owner operator workman comp will cost you about $1,100 a year