The IRS announced a voluntary classification settlement program that would provide partial protection for businesses who agree to prospectively treat workers formerly treated as independent contractors as employees.

The Federal Motor Carrier Safety Administration's (FMCSA) Pre-Employment Screening Program (PSP) recently went live. PSP has been touted as an essential tool designed to help trucking companies make informed hiring decisions, which should ultimately lead to safer roads. The website allows motor carriers and individual drivers to electronically access driver inspection and crash records as a part of the hiring process and provides web-based access to the driving records of operators for those who choose to participate. Although PSP is mandated by Congress, and is not a part of CSA 2010, it will likely play a central role in regulatory compliance. This legislation represents a combined effort to eliminate high-risk operators, and at the same time, raise the safety bar for the motor carrier industry.... Read More

Too often in today's economy, insurers are getting the short-end of the stick when the motor carriers they insure file bankruptcy. By the time the insured files bankruptcy - or possibly even before any financial problems arise - it is generally too late to protect your company from the effects of the insured's bankruptcy. Therefore, safeguards must be put in place beforehand in order to insulate an insurer from bankruptcy's often harsh consequences, including harmful effects on an insurer's collateral.... Read More

The overwhelming majority of insurance policies covering motor truck liability are designed and supported by the Insurance Services Office, or ISO. Currently, there are three forms on the market for commercial auto risks:

1. Business/Auto

2. Truckers

3. Motor Carrier... Read More

He's Not My Employee! Or Is He? Engaging an independent contractor instead of hiring an employee can save costs, if done right. It can also multiply costs if done wrong.

Misclassifying an employee as an independent contractor can cause a host of liability issues -back overtime pay, federal and state taxes, FICA contributions, penalties from the IRS, and exposure for workers' compensation, unemployment, and federal discrimination claims.... Read More

New Federal Regulatory Guidance on "Principal Place of Business"

On July 29, 2009, the FMCSA released a Notice of regulatory guidance relating to which locations may be designated as a "Principal Place of Business" by a Federal motor carrier. This new guidance went into effect on August 12, 2009. The notice is intended to answer questions related to 49 CFR 390.5, which defines a principal place of business as "the single location designated by the motor carrier, normally its headquarters...at which the motor carrier must make records required by [FMSC regulations] available for inspection." The current definition of "principal place of business" was adopted in 1998 in order to allow motor carriers with multiple terminals and business locations to maintain records, such as driver records of duty status or vehicle maintenance records, at a location where activity related to the records took place rather than at a company's headquarters. However, the FMCSA has still anticipated that in most cases, the "principal place of business" would be the same as a carrier's headquarters. ... Read More

By now, we have all heard about the planned rollout of CSA 2010 by the FMCSA. Designed to improve safety and accountability, CSA 2010 will make major changes to the ways the FMCSA and its state counterparts interact with motor carriers. Although the substantive regulations governing motor carriers will not change, motor carriers must be able to understand how the FMCSA could impact their day-to-day operations.... Read More

In an effort to lessen the "tax gap" (the difference between the amount of income reported by taxpayers and the amount the IRS believes is due) the IRS has increased the amount of random employment tax audits. What does this mean for your business and what will the IRS be focusing on?... Read More

On September 3, 2009, the United States Court of Appeals of the Tenth Circuit (encompassing the Rocky Mountain states issued a major decision on the applicability of the MCS-90 Endorsement. In a unanimous opinion, the full Court held that the MCS-90 Endorsement only applies where the underlying insurance policy does not provide coverage for the motor carrier’s accident and the motor carrier’s insurance coverage is either not sufficient to satisfy the federally-prescribed minimum levels of financial responsibility or is non-existent.... Read More

Fall brings thoughts of football with references to blitzes, post patterns and filling the gaps. Who's filling your gaps? In every risk management plan there are gaps that need to be accounted for. Two of the most common gaps that arise in the trucking industry are coverage for loading and unloading and misdelivery of liquid product. Each of these exposures could fall into the auto policy or the commercial general liability policy ("CGL"). Hopefully, at least one of your coverages picks these up. The gaps can be particularly problematic if you have different underwriters for the CGL and the auto policies. ... Read More