Ep. 555 Mitigating Risk on the Move: The Case for Third-Party Subhauler Agreements

Rancho Mesa's Alyssa Burley sits down with Sam Clayton, Vice President of the Construction Group to discuss why having third-party subhauler agreements is recommended if you hire a third-party to move a piece of heavy equipment or use someone to import/export material from a project.

Show Notes: ⁠⁠⁠⁠⁠⁠⁠Subscribe to Rancho Mesa's Newsletter⁠⁠⁠⁠⁠⁠

Host: ⁠⁠⁠⁠⁠⁠Alyssa Burley⁠⁠⁠⁠⁠⁠

Guest: ⁠⁠⁠⁠⁠⁠Sam Clayton⁠

Editor: ⁠⁠Megan Lockhart⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠

Music: "Home" by JHS Pedals, “Breaking News Intro” by nem0production

© Copyright 2025. Rancho Mesa Insurance Services, Inc. All rights reserved.

Transcript

Alyssa Burley: You’re listening to Rancho Mesa’s StudioOne™ podcast, where each week we break down complex insurance and safety topics to help your business thrive.

I’m your host, Alyssa Burley, and today I’m joined by Sam Clayton, Vice President of the Construction Group with Rancho Mesa. And, we’re going to talk about ways third-party subhauler agreements.

Sam, welcome to the show.

Sam Clayton: Good morning, Alyssa. Glad to be back in StudioOne.

AB: Well, we're happy to have you. Now, you recently wrote an article where you made the case for subhauler agreements. Will you explain the key differences between a subcontract agreement and a subhauler agreement and why contractors often overlook the latter?

SC: Sure. So street and road, general engineering, and trade contractors understand the importance of having a written and executed subcontract agreement in place when using subcontractors to complete a project. And this agreement serves to protect both parties by clarifying the responsibilities, managing risk, and providing legal protections in the event of a dispute. However, many of these same subcontractors will overlook having a subcontract agreement in place for third-party subhaulers or what is called a subhauler agreement. So this really applies if you hire a third party to move a piece of heavy equipment from one project to another or use someone to import or export material from a project, we recommend implementing a subhauler agreement.

AB: All right. So walk us through a real-world scenario where a subhauler accidentally injured someone on the job site. What are the legal and insurance consequences contractors might face without a subhauler agreement in place?

SC: Great question. So, for example, if a street and road contractor needs to import or export material, they typically contact a subhauler to let them know they'll need at least two dump trucks running eight hours a day for one week. On the first day, the subhauler enters the job site and accidentally hits a pedestrian because they're unfamiliar with the project site, that individual will more than likely obtain legal representation and file suit against the subhauler who caused the bodily injury, but more than likely name the street and road contractor in the suit as well. In order to protect and transfer the risk in this scenario, we would recommend you working in conjunction with your legal counsel to establish a written subhauler agreement.

AB: All right. So how can implementing a subhauler agreement improve a contractor's risk profile and potentially lower insurance costs. Well, in today's legal environment, it's imperative that companies understand their potential exposure to risk. Those that can successfully implement and manage both their subcontractor and subhauler agreements will not only protect the assets of their companies, but also will receive more favorable insurance pricing and improve their risk profile.

AB: All right. So, Sam, if listeners have questions about their subhauler risk, what's the best way to get in touch with you?

SC: You can reach me at sclayton@ranchomesa.com, or my direct line is (619) 937-0167.

AB: Alright, well Sam, thank you for joining me in StudioOne.

SC: Thanks Alyssa.

AB: Thanks for tuning in to our latest episode produced by StudioOne™. If you enjoyed what you heard, please share this episode and subscribe. For more insights like this, visit us at RanchoMesa.com and subscribe to our weekly newsletter.