Owner-Operator Lease Agreement

By completing this template, you can create an Owner-Operator Lease Agreement outlining the basic leasing arrangement involved in vehicle and freight leasing between carriers and independent owner-operators.

This template is useful for entrepreneurs adding to their fleet or outsourcing freight.

Download a sample owner-operator lease agreement in Word or PDF outlining the specifics of your deal and who pays what. Spell out your obligations, protect your business, and comply with federal and state law.

Who it's for

Use this Owner-Operator Lease Agreement template when you want the owner-operator arrangement without creating a full employment contract and you want to keep the independent contractor agreement intact.

• Owner-operators may lease vehicles and services to carriers.
• Freight carriers and logistics companies contract independent operators.
• Fleet managers assigning vehicles for temporary or long-term use.
• Entrepreneurs looking to enter transportation or freight delivery.
• Small business owners who want clear agreements to limit risk in their operations.

When to use this template

Use this Owner-Operator Lease Agreement sample when you're:

• Hiring or contracting with an owner-operator to deliver freight
• Terms under which a vehicle, equipment or service is rented
• Details on payment and compensation between parties
• Establishing insurance, liability and compliance requirements for independent operators
• Securing sensitive business information in operations
• Termination rights and amendment procedures for active contracts are established

It provides protection to both parties and prevents disputes by clearly stating the obligations, timelines, and legal protections for each party.

What's in Owner-Operator Lease Agreement Sample

The Owner Operator Lease Agreement template comes with all the clauses you need to define the legal relationship and operational agreement between the parties.

General Provisions

• Operator compliance with federal, state, and local regulations
• Independent contractor status (not an employee)
• Indemnification for liabilities, penalties, and damages

Duration of the Lease

• Start and end dates, renewal options
• Terms for fixed or successive lease periods

Receipt of Goods

• Proof that goods were received, including hazardous materials
• Confirms this agreement overrides bills of lading or other freight documents

Care and Custody of Merchandise

• Liability for damage or loss during transport
• Procedures for inspecting, securing, and reporting merchandise issues

Insurance

• Minimum coverage under FMCSA and UIIA standards
• Cargo, equipment, personal injury, and general liability requirements
• Certification and proof of compliance

Assignment

• Restrictions on transferring rights or obligations without carrier consent

Compensation and Payment

• Payment schedule and methods
• Documentation requirements for invoicing
• Procedures for reimbursements and expense settlement

Confidentiality

• Protection of business, supplier, and customer information
• Limits on disclosure without written consent

Termination

• Notice periods for voluntary or breach-based termination
• Equipment return and outstanding payment procedures

Amendments

• Written proposals for changes
• Mutual agreement required

Severability, Notices, Governing Law

• If one clause is invalid, the rest still stands
• Written notice procedures and delivery methods
• Which state's law governs the contract

How to fill out the Owner-Operator Lease Agreement template

You can use our free template to help you create an Owner-Operator Lease Agreement.

1. Figure out what you actually need

What freight, vehicle, or service are we leasing? What is the owner-operator responsible for? What is the carrier responsible for? Nail down equipment, routes, and compliance requirements.

2. Decide on the lease duration

Is it more of a fixed-term agreement, or something rolling? When does it start and when does it finish? If so, this must be stated as part of the contract.

3. Get insurance and liability straight

Provide minimum insurance coverage for cargo, equipment, and liability as required by the FMCSA and the UIIA, and indicate how proof-of-compliance is documented.

4. Lay out payment and compensation

How and when will the operator be paid? What are the invoicing requirements? Will I be reimbursed for expenses (gas, tolls, etc.)?

5. Set up procedures for handling goods and reporting problems

What are the requirements for inspections and custody? How do I report delays, damages, or accidents? This reduces the amount of risk.

6. Protect confidential information

The operator must not disclose information about the carrier's business or customers. The agreement must set out what information is confidential and what happens if it is disclosed.

7. Plan for ending the agreement

What's the notice period and what happens if you breach the contract? What would the process be for returning equipment or making amendments?

8. Make it legally enforceable

Get signatures from everyone, indicate which state's law applies, and keep records of notices sent to prevent future problems.