New Motor Carrier Form: What Language Should be Avoided in Agreements?
What language should I use or avoid in drafting owner-operator agreements, access agreements, shipper-carrier contracts, broker-carrier contracts, and equipment leases in order to maximize coverage under the New Form?
The New Form does not look at operating authority to determine who is an insured under the policy and the priority of coverage. Instead, it looks to the lease agreement between the parties. As a result, the owner-operator must be certain to have a written lease agreement with the motor carrier under whose authority they are operating and also make certain that the lease agreement does not require that the owner-operator hold the carrier harmless. If the lease agreement requires the owner-operator to hold the carrier harmless, or if there is no written lease agreement, then the owner-operator will be the primary for any loss.