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Can a trucking company avoid liability using a contractor?

On Behalf of | Jul 31, 2024 | Truck Accidents

In the trucking industry, the issue of liability can be intricate. A common question is whether a trucking company can sidestep liability for truck accidents by employing independent contractors instead of hiring employees directly.

Independent contractor relationship

Trucking companies frequently hire independent contractors, or owner-operators, to transport goods. These individuals or entities operate their own trucks and provide their services independently. This relationship is pivotal in determining liability.

Vicarious liability explained

Employers can be held responsible for their employers’ actions, but this does not apply to independent contractors. In many regions, trucking companies are less likely to be held vicariously liable for independent contractors’ actions, provided the contractors operate independently without direct company control.

Key factors in determining liability

Several aspects are considered when deciding if a trucking company is liable for an independent contractor’s actions. The first most important factor is control. The degree of control the trucking company has over the contractor’s work is critical. The second most important factor is the contractual agreements. The specifics of the contract between the trucking company and the contractor are crucial. The third factor is the level of training and supervision. If the company offers training or supervision, it may indicate a higher level of control, potentially increasing liability.

The next factor is the uniforms and equipment. Providing uniforms or equipment with the company’s branding might suggest more significant control over the contractor. Finally, there is the insurance coverage. Both the contractor’s and the company’s insurance policies can influence liability.

Conclusion

While using independent contractors can limit a trucking company’s liability in some instances, it does not guarantee complete immunity. Each case’s specific details, particularly the level of control the company has over the contractor, will ultimately determine liability.