Owner-Operator Agreement Template

What is a owner-operator agreement?

An owner-operator agreement (often called an independent contractor operating agreement or equipment lease) is signed when a motor carrier engages a driver who owns or leases their own truck to haul freight under the carrier's operating authority. Disputes usually come down to pay and deductions, so the agreement should say exactly how the owner-operator is paid and what may be taken out of each settlement.

This template covers the equipment by year, make, VIN and plate, who supplies trailers, the carrier's control and responsibility while the equipment runs under its authority, the owner-operator's right to refuse loads, pay as a percentage of revenue, per mile or per load with fuel surcharge and extras, itemised written settlements paid within the days you set, a written list of permitted deductions, an optional escrow with statements and return, the insurance each side holds, safety, inspections and logs, cargo and accidents, and ending the agreement. It also notes that transport regulations in many places set extra requirements for these agreements, which apply where they ask for more.

When to use a owner-operator agreement

• A trucking company leasing on an owner-operator with their own tractor and trailer
• A small fleet bringing on a power-only owner-operator to pull company trailers
• Updating an old lease agreement so every deduction is listed in writing
• Setting up an escrow with clear statements and return terms
• An owner-operator reviewing a carrier's terms before signing on

What you fill in

21 blanks, then the name and email of each person who signs: carrier, owner-operator.

What the owner-operator agreement covers

1. Equipment
2. Loads and the Owner-Operator's independence
3. Pay
4. Expenses and deductions
5. Insurance
6. Safety, inspections and records
7. Cargo and accidents
8. Term and ending
9. General

Using the owner-operator agreement, step by step

1 Enter both parties and the equipment

Add the carrier's legal name and authority numbers, the owner-operator's name, and each unit's year, make, model, VIN and plate. Choose who supplies trailers.

2 Set the pay

Choose the pay basis and rate, the share of fuel surcharges and extra charges, and how many days after receiving the paperwork each settlement is paid. Revenue-based pay comes with the rated freight bill.

3 List deductions and any escrow

List every item the carrier may deduct, one per line, with how it is calculated — anything else needs written consent. Add an escrow amount, how it builds up and when it is returned, or leave it empty.

4 Insurance and notice

Describe the insurance the carrier holds and the cover the owner-operator must carry, such as non-trucking liability, physical damage and occupational accident cover, and set the notice to end.

5 Send for signature

Send it to the owner-operator. Once signed, it's filed in your vault — keep the equipment receipts and insurance certificates with it.

Tips before you send it

• Check the transport regulations where you operate. Many set specific requirements for leasing equipment, settlements, deductions and escrow funds, and they apply on top of this agreement.
• List every deduction. The template only allows the deductions written in the agreement, which avoids most settlement disputes.
• Whether someone is legally an independent contractor depends on how the relationship works in practice, not only on the label — the template says so.
• Collect certificates of insurance before the first load and on every renewal.

Owner-operator agreement: frequently asked questions

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This template is a general starting point, not legal advice. Laws differ between countries and states — have a lawyer review the agreement for your situation before you rely on it. Page last reviewed 2026-10-25.