Who Pays For The Primary Liability Insurance

[blackpup]

Who usually pays for the primary liability insurance required by FMCSA, motor carrier or owneroperator?
I have been searching in the archives and not been able to come up with a good answer.
Searched the internet and came up with this.

From the OOIDA FAQs

5. Can I get my own primary liability and cargo when I am leased to a motor carrier?

FMCSA requires the motor carrier whose authority you are running under to obtain the Primary Liability and Cargo coverage. However, the motor carrier can charge you for this coverage. You need to review any lease agreements carefully prior to signing them to determine what fees the motor carrier is charging you for

The faq makes the point about reviewing the lease agreement to see what fees the motor carrier charges the owneroperator.

Another thing that caught my eye, was the requirement that the motor carrier obtain the Primary Liability and Cargo coverage, not the owner operator. Seems to me that in the case of van owners, I have seen some posts and actual lease agreements that the van owner would furnisn their own liability and cargo insurance, while naming the motor carrier as additional insured.

Thanks in advance for any help or advice.

jimmy

 

[chefdennis]

Depends on the carrier....some will pay for it, others will either pass the cost on to the o/o or the o/o can get their own and list the carrier on their policy..when a o/o runs for more then one carrier they can list as many carriers as they want with their being an additional charge for adding each additional carrier...

 

[paullud]

It just depends on the individual carrier, some will have you pay for the insurance through weekly settlements and some won't charge you directly for it at all. I thought I have even seen a couple of carriers make you purchase it on your own and name them on the policy.

 

[blackpup]

Thank you chefdennis and paullud both. I have seen a few posts about the motor carrier requiring the van owner to purchase the insurance and name the m/c as additional insured. Have no problems with my paying for the insurance, just wondered what the standard practice was.

jimmy