Transitioning From Company Driver to Owner Operator

Becoming an owner operator offers the freedom to control your routes, schedule, and income, but it also demands discipline and preparation. A team of subject matter experts from Triumph, a financial and technology company serving transportation, share insights from years of first-hand experience to help drivers transition with confidence. They are Kimberly Diggs, Senior Content Marketing Specialist; Julie Parker, Assistant Vice President of Insurance; Aubree Domond, Retention Specialist and former Owner Operator; and Lacy Aulbach, Vice President of Operations. 

Building a Strong Foundation 

The first step toward ownership is making sure the business is set up correctly. Parker stresses the importance of legal and administrative readiness. She notes that a driver should have a registered business name, MC number, and a relationship with a tax professional before hauling under their own authority. 

Researching rules in your state is critical and according to Parker, the best place to start is your local DMV that handles commercial vehicles. Online resources from the Department of Transportation, FMCSA, and professional groups can also provide clarity. 

Domond remembers when she and her husband started their trucking company in 2020. They bought their first truck and trailer, and her husband began driving. Within months, both left their corporate jobs to focus on the business. Looking back, Domond admits, “we learned quickly that driving was only half the job. Managing expenses, permits, and insurance was just as important.” 

Beyond the truck and trailer, startup costs can include an ELD, dash cam, headsets, and even simple items like a cooler for long trips. Parker advises setting aside enough cash for the insurance down payment, first month’s premium, and deductibles, pointing out that unexpected costs can catch new owners off guard. She recalls hearing new drivers assume that “if you have a claim, everything’s going to be paid for” and warns that is often not the case. 

When it comes to equipment purchases, Domond recommends buying a truck from a trusted truck dealer and a trailer from a trusted trailer dealer. While online marketplaces can offer deals, reputable dealers may provide financing and warranties that help protect your investment. 

Protecting Your Business Through Insurance and Safety 

Insurance is one of the largest ongoing expenses for an owner operator and one of the most important. New operators usually start at higher “new venture” rates, which depend on factors like the type of freight hauled, location, and driving history. Parker explains that insurance companies prefer applicants who already know exactly what commodities they plan to haul.  

“When you’re getting started, you want to go ahead and identify, this is what I’m going to haul,” she says, warning that listing commodities you do not actually haul can limit your options. 

Core coverages include auto liability, physical damage, and motor truck cargo insurance. Depending on your contracts, you may also need general liability or trailer interchange coverage. Physical damage insurance covers repairs after an accident you cause, but Parker cautions that towing limits can be lower than many expect. She describes one case where the tow cost $15,000 for the truck and $14,000 for the trailer.  

A clean driving record is essential, and insurance companies examine both commercial and personal driving history. As Parker explains: “If your job is a driver and you are having accidents or getting violations in your personal vehicle, that will at some point transition over to your commercial driving.” Preventing violations begins with consistent pre- and post-trip inspections, keeping the truck in good condition, and building relationships with dependable mechanics. 

Domond and her husband developed a relationship with a mechanic at a truck stop who eventually became their full-time service provider. This helped them keep their truck in top shape and avoid costly breakdowns. 

Managing Cash Flow and Choosing the Right Partners 

Once the wheels are turning, cash flow becomes the lifeline of the business. Broker payments can take 30 to 90 days, creating a strain for new operators. Some brokers offer quick pay for a fee, but Aulbach points out that factoring companies can provide same-day payment at a lower cost. 

“Factoring also verifies billing, checks broker credit history, and makes sure your paperwork is in order, so you get paid on time,” she says. 

Before taking any load, Domond stresses the need to calculate profitability. Rate per mile, fuel costs, and driver pay must all be considered.  

“If somebody’s going to pay you $1,200 and you’re going 500 to 600 miles, that may be more profitable than $2,000 for 1,000 miles,” she says. 

Insurance companies also look for steady, sustainable growth. Aulbach cautions that going from one truck to seven in the first year can make insurers wary and stretch a company’s finances. Building slowly allows for better management of safety, maintenance, and customer relationships. 

Partnerships can bring additional value. Some factoring companies offer fuel programs with discounts and route planning tools. Equipment dealers, insurance agents, and mechanics can all be key allies when chosen carefully.  

“Know who you’re working with, know what you’re dealing with, and do your research for sure,” Aulbach says. 

Secure parking is another safeguard that is often overlooked. Leaving a loaded trailer in an unsecured area can violate policy terms and lead to theft. Paid parking with surveillance may cost money, but it provides peace of mind and can be far cheaper than replacing stolen cargo. 

For teams or partners who co-own a business, Parker recommends putting financial responsibilities in writing. This ensures both parties understand who is accountable for debt or equipment if something goes wrong. 

“When you plan ahead, know your costs, and work with the right partners, you can set yourself up for success,” Parker says. 

Becoming an Owner Operator is more than just buying a truck. It is a business venture that requires careful financial planning, a deep understanding of regulations, strategic insurance coverage, and reliable partnerships. With these tools, drivers can not only survive but thrive in the transition from employee to entrepreneur. 

To view the webinar sponsored by Triumph, WIT members can visit the On-Demand Webinars page.  

Related Articles:  

• How Owner/Operators Can Navigate a Tough Economy 
• Five-Point Checklist for Aspiring Expediters 
• Ditching the Impostor Syndrome: Rewriting Your Inner Story  
• Secrets for a Successful Driving Career 
• Washington Update: Key Areas that Impact Women In Trucking  

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