Trucking Company Liability

Employers and Owner-Operators

Direct Answer: A trucking company is generally liable for the negligence of an employee driver, and federal lease regulations require an authorized carrier that leases equipment to assume complete responsibility for its operation, which is often used to hold carriers liable for owner-operators.

Carriers commonly try to classify drivers as independent contractors. Under 49 C.F.R. § 376.12(c), the lease must give the authorized carrier exclusive possession, control and use of the equipment and complete responsibility for its operation for the duration of the lease. Courts have used this to treat carriers as responsible, though the law differs by state and is sometimes contested.

Direct Negligence Claims

Separately from vicarious liability, a carrier can be sued for its own negligence: hiring a driver with a poor safety record, failing to test for drugs or check qualifications, inadequate training, pressure to meet unrealistic schedules or failing to maintain vehicles. Company safety records and driver files are therefore sought early in a case.

Insurance and Other Defendants

Federal rules require interstate for-hire property carriers to carry at least $750,000 of liability coverage for general freight, and $1 million or $5 million for oil and higher-risk hazardous materials (49 C.F.R. § 387.9). Serious cases can exceed those limits, so other potential defendants such as a maintenance contractor, a cargo loader, a shipper that overloaded the truck or a parts manufacturer matter. Broker and shipper liability is legally contested in some jurisdictions, so it needs current advice.