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Leased-on owner-operator insurance: an Indiana guide

Helm PartnersUpdated Oct 26, 2026Sources checked Oct 26, 2026

Helm Partners is a trucking-only insurance agency being formed in Michigan. Our Michigan license is pending. We do not quote or sell insurance until licensed. We are not licensed in any state yet, including Indiana, and do not quote, sell or place insurance there. This guide is general information, not advice on any policy.

Short answer

When you lease onto a motor carrier, the carrier's liability insurance protects the public while you haul under its authority, and the lease must say so (49 CFR 376.12(j)). The lease must also say who provides other coverage, such as bobtail, and what the carrier charges back to you. In Indiana, a leased owner-operator is not the carrier's employee for worker's comp (IC 22-3-6-1(b)(8)).

In this guide
  • What the carrier covers
  • What the lease must spell out
  • Questions to settle before you sign
  • Indiana worker's comp
  • Plates and fuel tax
  • A checklist before you sign
  • FAQ

Leasing onto a carrier splits insurance between you and the carrier. Federal lease rules decide what the lease must say. Indiana law adds a rule on worker's comp. Here is how it fits together.

What the carrier covers

  • Public liability. Under 49 CFR 376.12(j), the lease must state the carrier's legal duty to keep insurance for the protection of the public under 49 U.S.C. 13906. That is the filing on the carrier's authority, not yours.
  • Control of the truck. The lease must give the carrier exclusive possession, control and use of the truck for the lease term, and complete responsibility for its operation (376.12(c)(1)).

What the lease must spell out

  • Other coverage. Who provides any other insurance for the leased truck, such as bobtail, and the amount of any chargeback to you (376.12(j)(1)).
  • Coverage bought through the carrier. The carrier must give you a copy of each policy on request, and a certificate showing the insurer, policy number, dates, types and amounts of coverage, your cost and your deductibles (376.12(j)(2)).
  • Cargo and damage deductions. When the carrier may deduct cargo or property damage from your settlements, with a written, itemized explanation before any deduction (376.12(j)(3)).
  • No required purchases. You are not required to buy or rent products, equipment or services from the carrier as a condition of the lease (376.12(i)).

Questions to settle before you sign

  • Driving off dispatch. Whether the lease expects bobtail or non-trucking liability from you. See non-trucking liability vs bobtail.
  • Damage to your own truck. The carrier's public liability filing protects the public, not your equipment. Check what the lease and any truck loan say about physical damage coverage.
  • Cargo claims. Whose cargo coverage responds, and what deductible the lease lets the carrier charge you.
  • Injury to you. See Indiana worker's comp below.

Indiana worker's comp

  • An owner-operator who provides a truck and driver to a carrier under a written contract subject to 49 CFR 376 (or the matching Indiana rules) is not the carrier's employee for worker's comp (IC 22-3-6-1(b)(8)).
  • The owner-operator may elect to be covered, with their drivers, under the carrier's policy by paying the premiums the carrier asks.
  • A sole proprietor or partner working as an independent contractor who does not elect coverage may get a certificate of exemption (IC 22-3-2-14.5). The fee is $20, after clearance from the Department of Revenue. Board: independent contractors
  • More in our Indiana workers' comp guide.

Plates and fuel tax

IRP plates and IFTA in Indiana run through DOR Motor Carrier Services. Who holds them while you are leased on belongs in the lease. See Indiana owner-operators: IRP and IFTA.

A checklist before you sign

  1. Find the insurance paragraph and note who provides each coverage.
  2. Write down every chargeback amount.
  3. Ask for certificates for anything you buy through the carrier.
  4. Read the cargo and damage deduction terms.
  5. Put your worker's comp election or exemption in writing.
  6. Keep a signed copy. Both parties sign, and the owner keeps a copy (376.12(l)).

More guides: owner-operators, the Indiana filing checklist and motor truck cargo insurance.

FAQ

Does the carrier's insurance cover me when I am leased on?

It protects the public while you operate under the carrier's authority. The lease must state the carrier's duty to keep that insurance (49 CFR 376.12(j)(1)). Other coverage, such as bobtail or damage to your own truck, depends on what the lease says.

Can a carrier charge me back for insurance?

Yes, if the lease says so. The lease must state the amount of any insurance chargeback. If you buy coverage through the carrier, it must give you a certificate showing the cost and deductible of each coverage (49 CFR 376.12(j)).

What does the lease have to say about buying through the carrier?

It must say you are not required to buy or rent products, equipment or services from the carrier as a condition of the lease (49 CFR 376.12(i)). If you do buy coverage through the carrier, you get policy copies on request and a certificate for each policy.

Is a leased owner-operator the carrier's employee in Indiana?

No, if the owner-operator provides the truck and driver under a written contract subject to 49 CFR 376 or the matching Indiana rules (IC 22-3-6-1(b)(8)). The owner-operator may elect coverage under the carrier's policy by paying the premiums the carrier asks.

Can a carrier deduct cargo claims from my settlement?

Only under the conditions the lease spells out. The carrier must give you a written, itemized explanation before it makes any deduction for cargo or property damage (49 CFR 376.12(j)(3)).

What is an Indiana certificate of exemption?

A filing under IC 22-3-2-14.5 for sole proprietors or partners working as independent contractors who do not elect worker's comp coverage. You get clearance from the Department of Revenue, then file with the Worker's Compensation Board. The fee is $20.

Helm Partners is a trucking-only insurance agency being formed in Michigan. Our Michigan license is pending. We do not quote or sell insurance until licensed. We are not licensed in any state yet, including Indiana, and do not quote, sell or place insurance there. This guide is general information, not advice on any policy. For your own lease, check with the agencies linked below or an attorney.

Sources