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Truck Driver Agreement

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Independent Contractor Agreement

Independent Contractor Agreement Between an Owner/Operator Truck Driver and Common Carrier Company or Organization

This Agreement is between hereinafter referred to as "Contractor" located at and located at hereinafter referred to as Carrier.

Now in consideration of the mutual covenants and promises hereinafter set forth, the parties agree as follows:

1. Carrier hereby agrees to offer to Contractor, for transportation by and with Contractor's own equipment, one or more shipments per year, and Contractor agrees to pick-up, transport, and deliver goods in behalf of Carrier's Shippers, Consignees, and/or Customers and furnish transportation services to meet the distinct needs of Carrier as detailed hereunder.

2. Carrier agrees to provide contractor with truck liability and property insurance coverage with a minimum combined single limit of $1,000,000.00 and cargo insurance in an amount not less than $250,000.00 and any additional insurance required by applicable laws, rules and regulations for any services provided by Contractor under this Agreement.

3. Carrier will invoice and collect freight charges from Shipper, Consignee or appropriate party and Contractor will be paid within days of receipt of proper documentation from Contractor including:

A. Original bill of lading between Shipper and Carrier issued by Shipper and any original shipping documents.

B. Proof of delivery, either on the original bill of lading or on a separate delivery receipt showing the person's name receiving the freight, the description and the total weight and number pieces received, and any overages, shortages, damages or other notations.

C. Invoice from Contractor to Carrier for the amount agreed upon and described herein.

D. Signed shipment and rate confirmation for invoiced shipment.

E. Copy of original grant of ICC Authority to cover commodities transported and a current certificate of insurance issued to Carrier from Contractor's insurance companies showing proof of motor truck liability and cargo coverage's, showing Carrier and Contractor as insured parties on the liability policy and on the cargo policy.

F. Contractor agrees to provide Carrier with the above-mentioned documentation within hours of delivery.

4. Contractor shall execute a bill of lading for property it receives for transportation under this agreement and shall be liable to the person or company entitled to recover under the bill of lading. The liability imposed by this paragraph is for the actual loss or injury to the property caused by the Contractor which may be more than the amount of coverage required by the ICC for a Contractor. Contractor's liability shall be the same as Contractor's liability as required by federal law and shall include but not be limited to liability for loss, delay, theft, damage, destruction or liability of whatever nature arising from the transport of all loads arranged and accepted by Contractor. The cargo insurance shall be in the form required by federal regulations, and shall have no exclusions or restrictions that would not be accepted by the ICC for a filing under the statutory requirements and shall in all respects, be identical to the cargo insurance filed in accord with the said laws and regulations. Contractor further agrees to defend and hold harmless Carrier against any and all liability or claims on each shipment transported by Contractor pursuant to the agreement.

5. The parties to the agreement acknowledge that cargo claims shall be settled in accordance with federal regulations.

6. Contractor agrees to telephone Carrier at within minutes of any delay, accident or breakdown that will affect the condition or the timely delivery of merchandise transported.

7. Contractor agrees, at it's own expense, to maintain public liability and property insurance coverage with a minimum combined single limit of $750,000.00 per occurrence, or $1,000,000.00 if Contractor transports hazardous materials, and for loss of or damage to freight and Cargo insurance in an amount not less than $100,000.00 as well as any additional insurance required by applicable laws, rules and regulations. Contractor will furnish to Carrier upon request a copy of each such insurance policy and written certificate of insurance and further agrees to name Carrier as an additional insured on the Policy. Contractor further agrees to defend, indemnify and hold harmless Carrier from any and all liability costs and damages to persons and/ or property arising out of Contractor's Operations pursuant to this agreement, including but not limited to all road, fuel and other taxes, fees, permits or cost of insurance, including Workman's Compensation, if applicable and any expense related to a claim by a third party, including reasonable attorney fees to defend Carrier for claims related to the shipments transported by Contractor as arranged by Carrier.

8. Contractor authorizes Carrier to invoice shipper, receiver, consignor, consignee or appropriate party for freight charges as agent for and on behalf of Contractor. Payment of the freight charges to Carrier shall relieve shipper, receiver, consignor, consignee or appropriate party of any liability to Contractor for non-payment of charges.

9. The relationship of Contractor to Carrier shall, at all times, be that of an independent contractor, except that Carrier shall be the agent for Contractor for the collection of charges, when Carrier collects such charges.

10. Contractor represents and warrants that the drivers he utilizes pursuant to this agreement herein are competent and properly licensed drivers and are fully informed concerning their responsibilities for the protection and care of the involved lading. Contractor agrees to pay the subject driver's salary and to be responsible for workman's compensation coverage, if applicable. and all taxes based on said salary and operation.

11. Contractor's rate for trailer-load shipments placed by Carrier will be in the form of a flat charge, based on a pay per mile, in addition to additional stop charges, and other accessorial charges, to be negotiated on a per load basis and reflected on an addendum labeled as SCHEDULE "A". Such an addendum for each shipment will be executed containing information such as the origin, pick-up time and date, destination, delivery time and date, and agreed upon rates for such shipment. Other pertinent information will also be shown on this addendum.

12. Contractor shall not solicit freight from any shipper, consignor, consignee, or customer of Carrier where (1) the availability of such traffic first became known to Contractor as a result of Carrier's effort, or (2) where the shipment of the consignor, shipper or customer of Carrier was first tendered to Contractor by Carrier. If Contractor breaches this agreement and solicits Carrier's customer(s), Carrier is then entitled, for a period of two (2) years after involved traffic first begins to move, to commissions from Contractor of 15% of the transportation revenue on the movement of the traffic plus any reimbursement of legal fees expended to enforce such action.

13. Neither party hereto will be liable for the failure to tender or timely transport freight under this agreement if such failure, delay or other omission is caused by strikes, acts of God, wars or civil disorders, and if such failure is a result of either party's compliance with legally constituted orders of civil or military authorities.

14. Contractor warrants that all operations conducted with Carrier will be as a Dedicated Contractor, operating under an exclusive use agreement. During the term of this Agreement, Contractor shall provide direct service from origin to destination with no interchange with other Contractors or trip leasing. Both parties agree that this Agreement governs all relationships between Carrier and Contractor, and that any additional funds, payments or fees which might be due Contractor as a result of holding other authorities and/or the filing of other tariffs, schedules or circulars are, pursuant to this agreement assigned, bargained or sold to Carrier.

15. The validity of this Agreement and any terms or provisions as well as the rights and duties of the parties hereunder, shall be governed by the laws of the State of .

All civil actions filed as a result of disputes arising out of this Agreement shall be filed in the court of proper jurisdiction in the State of .

16. If any provisions of the agreement are invalid under Federal or State law, or any other jurisdiction, such provisions shall be waived and deemed a part of the Agreement. However, it is agreed that under no circumstance shall such waiver or exception cause any other section or provision of this Agreement to become invalid.

17. The Agreement shall become effective as of the date recorded below and shall remain in force for a period of and shall be renewed automatically until cancelled by either party on thirty (30) days written notice.

18. This Agreement contains the entire sales contract and no additions or changes can be made unless in writing and initialed by both parties.

IN WITNESS WHEREOF, the parties hereto have signed their names on this day of , , in .

Carrier

Contractor

Enter text✕

What a Truck Driver Agreement Covers

A Truck Driver Agreement is a written contract that defines the working relationship between a carrier or motor carrier and a driver, whether employed or engaged as an independent contractor. Typical provisions describe scope of work, routes or territories, compensation and pay schedule, hours of service compliance, equipment responsibilities, insurance and indemnity, termination rights, and required driver qualifications such as valid CDL and medical certification. The document creates clear performance expectations and allocates operational, safety, and financial risk between the parties.

Why a Clear Truck Driver Agreement Matters

A written agreement reduces disputes, documents required credentials and insurance, and clarifies pay, fuel and detention rules. It helps carriers meet regulatory oversight obligations and supports payroll and tax reporting for independent contractors.

Why a Clear Truck Driver Agreement Matters

Who typically completes and signs this agreement

Use a written agreement whenever a driver performs regular paid work for a carrier, or when insurance and tax status must be documented.

  • Fleet managers and dispatch teams responsible for onboarding drivers and ensuring compliance with DOT rules.
  • Owner-operators and independent contractors who need clear payment terms and indemnity provisions.
  • Shippers, brokers, or logistics providers that require contractual indemnities and proof of insurance.

Primary signer roles and what they represent

Fleet Manager

A fleet manager signs on behalf of the carrier, certifying that the carrier will administer payments, assign routes, and maintain required insurance and compliance documentation during the contract term.

Owner-Operator

An owner-operator or driver signs to confirm qualifications, vehicle maintenance responsibilities, acceptance of compensation terms, and agreement to follow carrier policies and applicable federal and state transport regulations.

Security and compliance data points to protect

Encryption: TLS 1.2/1.3 in transit
Data at Rest: AES-256 encryption
Audit Trail: Signed event logs retained
HIPAA: BAA available if PHI present
Certifications: SOC 2 Type II available
21 CFR Support: 21 CFR Part 11 compliance

Common preparation pitfalls to avoid

  • Mismatched legal names between ID, W-9, and contract cause verification delays and possible tax or insurance disputes.
  • Incomplete insurance schedules or omitted policy numbers leave carriers exposed to uncovered loss and operational risk.
  • Vague pay or detention clauses lead to disputes over earned compensation, especially for load delays and layovers.
  • Failing to document driver qualifications (CDL, medical certificate) may violate FMCSA rules and risk enforcement action.

Key risks and legal consequences of errors

Incorrect Pay Terms: Wage disputes, claims
Missing Signatures: Enforceability risk
Insurance Gaps: Liability exposure
I-9 Noncompliance: Civil fines possible
Tax Misreporting: IRS penalties apply
Regulatory Violations: FMCSA enforcement risk

How organizations use Truck Driver Agreements in practice

Real-world examples show how agreements reduce onboarding time and clarify obligations for both carriers and drivers.

Optica Ventures LLC — onboarding

Optica streamlined driver onboarding using a standardized agreement with clear insurance and safety clauses.

  • The contract required CDL and medical verification before first dispatch.
  • As a result, the company reduced back-and-forth review requests and improved audit readiness while keeping documentation consistent across contracts.

Martin Properties — subcontract hauling

A small carrier used written driver agreements to record pay-per-mile and detention rates for subcontracted haulers.

  • The agreement specified mileage reporting and invoice timing.
  • This clarity lowered payment disputes, improved cash forecasting, and made tax reporting for independent drivers simpler at year end.

How to fill out a Truck Driver Agreement step by step

Complete the agreement in a logical sequence to prevent omissions and to ensure regulatory compliance.

  • 01
    Identify Parties: Enter full legal names for carrier and driver.
  • 02
    Verify Credentials: Provide CDL number and medical certificate details.
  • 03
    Define Compensation: Specify pay rate, fuel surcharge, and payment schedule.
  • 04
    Sign and Date: All parties sign and date the signature block.

Typical routing and execution workflow

A standard signing workflow reduces friction: upload, assign fields, invite signer, and archive executed copies.

  • Upload Document: Import the template as PDF or DOCX.
  • Place Fields: Add signature, date, and conditional fields.
  • Invite Signer: Send secure signing link or email invite.
  • Store Record: Save signed copy with audit trail.

Essential provisions every professional agreement should include

A comprehensive Truck Driver Agreement organizes obligations, protects both parties, and creates a defensible contract record for audits and disputes.

Parties

Identify carrier, driver, and any third-party broker; include legal business names, contact information, and the entity responsible for payroll or contractor reporting.

Scope of Work

Describe authorized routes, types of freight, loading/unloading responsibilities, and any geographic or commodity restrictions that define permitted operations.

Compensation

Specify pay method (per mile, per load, hourly), timing of payments, fuel surcharge formulas, detention rates, and invoicing requirements to avoid ambiguity.

Insurance and Indemnity

State required liability and cargo insurance limits, name additional insureds where needed, and include indemnity language for third-party claims and loss allocation.

Compliance

Require maintenance of valid CDL, medical certificate, drug and alcohol testing compliance, logkeeping under FMCSA rules, and notification obligations for violations.

Termination

Detail termination for cause, notice periods, final pay and freight settlement procedures, and post-termination obligations such as return of equipment and confidential information.

Practical tips to reduce disputes and speed onboarding

Follow administrative and drafting best practices to keep the agreement enforceable and operationally useful.

Use consistent legal names
Always use the exact legal name from state registration or government ID in the contract, W-9, and insurance certificates to avoid identity and tax-reporting mismatches that trigger audits.
Attach credentials as exhibits
Include copies of CDL, medical examiner certificate, insurance declarations page, and W-9 as exhibits to the agreement so the files are preserved with the contract.
Be explicit on payment triggers
Define when a mile is billable, how detentions are measured, and what supporting documentation is required for invoicing to prevent later disputes over amounts owed.
Maintain an audit trail
Capture timestamps, signer IPs, and version history for every execution step to strengthen enforceability and to demonstrate compliance with electronic signature laws.

Time-sensitive steps and typical deadlines

Track obligations and deadlines from verification through ongoing compliance to reduce operational gaps.

Hire Date / Effective Date:

Enter as MM/DD/YYYY; determines payroll and benefits start.

Credential Verification:

Verify CDL and medical certificate before first dispatch.

Insurance Proof:

Obtain current insurance declarations prior to equipment use.

Tax Forms:

Collect W-9 on onboarding; issue 1099-NEC by Jan 31 for contractors.

Background Checks:

Complete any required background or driving-record checks before assignment.

Key onboarding milestones from draft to active driver

Sequence the onboarding process so each milestone completes before the next stage begins.

01

Draft Agreement

Prepare a template with required fields and exhibits filled.

02

Verify Documents

Confirm CDL, medical, insurance, and W-9 completeness.

03

Execution

Obtain electronic or wet signatures and date stamp the agreement.

04

Activate Driver

Add to dispatch system and confirm insurance is recorded.

Recommended digital workflow settings for electronic completion

Configure fields and authentication to match your risk profile and the document’s legal requirements.

Field Configuration
Signature Type Allow typed or drawn e-signatures; require audit trail for intent
Authentication Use email link plus optional SMS code for higher assurance
Conditional Fields Show insurance exhibit fields only if carrier selects third-party coverage
Storage Location Archive signed record in secure document repository with retention policy

Technical considerations for e-signing and storage

Confirm the chosen provider supports retention and compliance features your operation requires, such as HIPAA BAA or 21 CFR Part 11 if applicable.

  • Integrations: Support for Salesforce, NetSuite, Google Workspace, and cloud storage
  • File Formats: Accepts PDF and DOCX with audit trail export
  • Authentication Options: Email, SMS, KBA, and advanced signer verification

How a Truck Driver Agreement differs from related documents

Compare closely related contract types so you use the correct form and include necessary clauses.

Criteria Truck Driver Agreement Independent Contractor Agreement
Notarization Required
Tax Reporting w-2 or 1099 based on status typically 1099-nec
Insurance Clause carrier may require additional insured contractor provides evidence
Termination Notice typically short notice often defined notice period

Comparison of common eSignature platforms for executing agreements

Vendor feature and price comparisons can inform platform selection for electronic execution and storage of contracts.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial Yes, 7-day free trial Varies by vendor Varies by vendor Varies by vendor Varies by vendor
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No cap 100 envelopes/user/year Varies by plan Varies by plan Varies by plan

Frequently asked questions about Truck Driver Agreements

Answers to common questions about e-signing, notarization, corrections, and recordkeeping for driver contracts.


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