tips on where/how to start Independent o/o?

I had 35k a year premium and 2k financing charges. 8.9k down, 5k deposit, 3.2k for 9 months. This was on 1 million liability, 250k cargo with reefer breakdown, 45k non-owned trailer, 28k tractor coverage.

We just switched to Progressive after the business hit its 1 year mark. The policy was 14k but we got the discount to 12k because we paid it up front. We also dropped our cargo to 100k and replaced trailer interchange with a 16k flatbed. This was what we originally intended and were quoted before Progressive pulled out of the new entrant market, and re-entered a few months later with higher rates. I actually think it was 10k a year when we got the quote.

I would strongly suggest renting or buying a trailer. Power only can be tough if you don't have good connections or freight. Some brokers won't want to work with you until you've had a certain amount of experience, and they're usually the ones who pay better. If you're sure the port work pays well and it's what you want to do, go for it. Container work around my area was like 1.36 a mile or something, so I never got into it.

Business plan #1, create the business #2, the rest are all tied together pretty much. Getting your MC should be #3, it takes almost a month to process it so you can't run even if you have a truck. You have 90 days from when you file to activate your authority, which happens when you get insurance and the insurance company notifies FMCSA. If you go past the 90 days without activating, you have to start over and pay the fee again.

Oh, and you have to enter a drug testing program, take a pre-employment drug test, do a background check on yourself, register your truck(ours was around 2k a year), learn how to handle IFTA and other paperwork/record keeping.

 

@loudtom ... Excellent breakdown.

Few questions:

1. What year is your truck?
2. If I'm intending to do power only (drop/hook) should I consider "non-owned" trailer coverage OR that's part & parcel of the company I lease onto's insurance?
3. Why drop cargo limits to $100K? Are there no added advantages (ratewise) if you have higher limit? I heard that some brokers will not give you a load if load demands higher limit - which makes me ask - can u get more $$ with your higher limit?

 

2012 Volvo 780

I'm not sure about leasing as that should be the carrier's insurance you are under, but if you're pulling under your own authority then you are the one who needs trailer interchange or non-owned trailer coverage. You would then add them as additional insured or loss payee.

The only brokerage that required $250k from me was giving me loads that I estimated to be around $30k retail. Everyone else I've dealt with so far only requires $100k. If I want to increase it, I just call my agent and have them change it and pay a bit more. I might be wrong, but I don't see an insurance company paying out more money than the value of the cargo being claimed, so I don't see a benefit in it unless the value of my freight increases.

 

Dang that's high. I got a quote from progressive that was $17k a year & that was a new entrant quote. The only difference I was looking for was $65k non owned trailer coverage & $30k on the truck. Guess my quote wasn't too bad.

 

Ok. You say you will use brokers. Have you made any contact with any of them yet? Finding the work and then the good paying work will be your biggest hurdle here.

 

How many years driving experience do you have? I only ask because I've got a 2011 Freightliner & I got a quote from Progressive that was much lower than that.