A great example of a Trusted Source is a company who acts as a general contractor between client companies and Independent Contractors.  Drivers, labor, nurses, IT professionals, accountants, and a host of other occupations have a growing cadre of ICs.

This has become much more common in the last several years particularly in the transportation business.  Owner operators as they are sometimes called can work local areas or long haul over the road as they wish.  The client companies gain too.

The drivers get access to different insurance products that are required by shippers and receivers like Occupational Accident Insurance.  Other coverages such as Life Insurance, Health Insurance Programs, Legal Services, Accounting Services, Workers Compensation Insurance, access to Truck Leasing Programs and others are also made available with this win win win arrangement.

Trucking companies or motor carriers win because they can get all the drivers they need quickly.  The administrative aspect of hiring a driver is handled by the GC and this further reduces exposure to the carrier for the owner operators.  This works without their own personnel department doing all of the required background checks, insurance checks and the like.  They often pay flat rates and certainly know what the costs are going to be up front.  A firewall is created between the motor carrier or courier company and the ICs because the ICs work for the General Contractor by contract.

The truckers win too.  Most of the coverages available through quality firms are going to be discounted so they get the coverages they want and need at reduced rates.  More importantly they have help getting loads and this increases revenue, reduces costs and downtime.  The trucker support company becomes a Trusted Source for coverages needed by the drivers.  The drivers depend on the company to bring necessary and useful products to them at the best possible pricing.

The “General Contractor” in this arrangement earns their pay by doing everything the trucking companies and drivers don’t like doing.  Things like dealing with government agencies who regularly try to reclassify workers and insurance companies who are trying to charge for ICs as if they are employees.  They are also responsible to the drivers to investigate the companies whose benefits they offer.  The savings generated for both “clients” in this equation is where there is a profit.  And everyone wins.

Though there are many trucking operations who currently employ tractor drivers and couriers it is increasingly risky to for these companies to employ drivers and use owner operators.  You can contact this blogger for recommendations for both trucking support and or courier supply companies.