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

Beginning in June, 2010, the ISO will no longer support the Truckers' policy. The Motor Carrier policy brings some changes that need to be addressed by every trucking company.

The Truckers' policy has always been based on motor carrier authority as provided through state and federal agencies. For example, the Truckers' policy references vehicles "being used pursuant to operating rights granted to you by a public authority".

The Motor Carrier policy, on the other hand, is based primarily on contract language. Therefore, we are moving from a system primarily based on things like "whose name is on the bill of lading?" and "whose name is on the side of the truck?" to a detailed analysis of the contracts in place between the parties. That change is most noticeable in two areas. First, in the "who is an insured" section of a Motor Carrier policy, lessors leased to the motor carrier are covered if the lease agreement does not require the lessor to hold the insured harmless as long as the vehicle is used in the scope of the insured's business as a motor carrier for hire. Thus, because most independent contractor lease agreements require the independent contractor to indemnify and hold harmless the motor carrier, the vehicle owner would likely not be insured under the motor carrier policy unless the owner is the driver. This is a big change from the historical system for insuring independent contractors through the motor carrier. Thus, the owner of the leased vehicle may be left out of the risk management plan.

Another area where this change is going to be evident is in the "other insurance" section. The Truckers' policy historically provided that coverage for a tractor was primary and the coverage for an attached trailer was excess. With the Motor Carrier form, when an auto is hired or borrowed by another motor carrier, the Motor Carrier policy is primary if there is a written agreement between the named insured and the lessee if the lease requires the named insured to hold the lessee harmless. On the other hand, if the lease does not require the insured to hold the lessee harmless, the lessor's insurance is excess.

From these developments it is apparent there will be a greater emphasis placed on written contracts and "formalities" in arrangements between trucking companies and independent contractors. One thing is sure: lawyers will have plenty to do until some of these questions are resolved.