Can You Use Another Company’s CVOR? | MTO Rules Explained

Can you use another company's CVOR? It’s a question many operators ask, but the answer is more complicated than a simple "yes" or "no". In this video, I break down the specific rules from the Ministry of Transportation (MTO) regarding borrowing or renting a CVOR and what you need to do to stay legal on the road.

While the MTO generally wants the name on the CVOR certificate to match the plate ownership, there are legal ways to operate under someone else's authority—if you follow the right steps.

What we cover in this video:

The Short Answer: Why the MTO generally discourages using another person's CVOR.


Plate vs. Vehicle Ownership: Understanding the two halves of your ownership document and how they relate to the CVOR holder.


The "Direct Work" Rule: Why you can only use a CVOR if you are working directly for the holder.


Lease Agreements: The necessity of having a formal agreement in place to protect both companies.


Independent Operations: Why Company B cannot move their own freight while under Company A’s CVOR.


Bottom Line: If you ruin someone else's CVOR rating with crashes or tickets, they are the ones held responsible by the MTO. Before you "borrow" a CVOR, make sure you understand the risks and the legal requirements

Transcript

0:32

Can you use another company's CVR? What a great question. I didn't come up with it. You did. One of my viewers and listeners came up with this question, and it's awesome because it's really, really complicated. Let's get ready. into it. Can I use another person's CVR or can you use another person's CVR? And the short answer, There's really kind of 2 answers, I guess. Uh, the one that you would like and the one that you wouldn't like. Uh, can you rent a CBR from another company? And Could you loan your CBR to your buddy so that they can do work for you? So these are all the different questions or the ways that you answer, whether you could operate legally under somebody else's CVR. And the short answer, the simple one is no. The MTO really doesn't want you to use somebody else's CVR. Because, If that person loans you the CVR, they are still responsible for all the things that you and your drivers might do to that CVR. So if you have a crash or if you get tickets, it all goes on to that CVR. In other words, you could really ruin that CBR's rating. So, uh, but the long answer is yes, you actually can borrow somebody else's CVR. Here's what MTO had to say about it. The name on the CBR certificate should match the ownership of the license plates for the vehicle to afford coverage under that CVR. So, what does that really mean? Here's an example of an ownership, if you're not. Familiar familiar with the ownership. It actually has 2 halves. This is the left hand side right here. And you can see the arrow points out that this is the vehicle portion. So this is who actually owns the truck. It could be you, it could be your company. It could be a lease from, you know, one of the leasing companies. That's what would show up there. And on the other half, You see here with the arrow, it is the plate portion. So, technically, These 2 halves of the CVR could be and frankly are often different. The vehicle holder or the owner is on the left, the plate owner is on the right. Many companies, for example, set themselves up where assets are owned by one corporation, but they are rented or leased to a different corporation. And so that's what would happen here. In the case. of borrowing a CVR, as you can see there, you could own the truck, but the right hand portion, the plate portion of the ownership should be the CBR holder. And then, here's what more the MTO had to say, there are some exceptions, of course, including rental vehicles and lease agreements. So, sometimes when you rent a vehicle from a rental company, um, you don't actually, the CVR holder doesn't own the plate in that case usually, if it's a short term rental. The relationship. This is key. The relationship is only valid. If the company using the CVR is doing work directly for the CVR holder. The emphasis on the word directly is mine. But let's read that again to make sure that you understand it. The real, the relationship is only valid if the company is using the CVR is doing work directly for the CVR holder. So if you think of company A, is the CVR holder and you being company B, You can only work directly for company A, and move their products. And there has to be a lease agreement between company A and company B, outlining this. And so you may want to get a lawyer involved for that. Uh, company B cannot operate independently. This is directly from the email that I receive from MTL. Company B cannot operate independently, delivering their own products or, for contracts, with other companies while, Under the authoration of company A. So this says it quite clearly, Company B can only work and only move freight for the CVR holder. So, can you borrow a CVR? No, the MTO really hates that. But maybe, and you've got to think about who owns a plate, you got to have a lease agreement, and you can only work directly for, That CVR holder. All right, my name's Chris Harris. I own CVOR.ca. If you've got other questions, that was such a great question. If you have more, please reach out and let me help. All right, Chris Harris, Safety Dawg. Ah, I'm out of here.