Can I broker my own freight?

Discussion in 'Ask An Owner Operator' started by Natty Bro, Jan 26, 2022.

  1. Natty Bro

    Natty Bro Bobtail Member

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    My insurance agent just told me that I cannot broker my own freight. She said, "Insurance companies frown on that!" I asked her how they would know, and she said once they see you bought a surety bond they would know.

    Is this true?

    Why would the insurance companies care if my wife is at home brokering freight? It doesn't make sense. She probably would be brokering 80% for others, 20% for me, if that!

    Any ideas?
     
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  3. LoneRanger

    LoneRanger Road Train Member

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    You need a brokerage firm bond and insurance plus mc and dot needs to be for brokerage firm as well. On top of that you can’t find loads on the board and broker those off, as it’s called double brokering
     
  4. Spyro2112

    Spyro2112 Medium Load Member

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  5. DUNE-T

    DUNE-T Road Train Member

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    Are you just planning to get loads from a load board and rebroker, or are you gonna get loads straight from the shippers?
     
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  6. ZVar

    ZVar Road Train Member

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    If you are trying to say all double brokering is illegal you are wrong. It's only illegal if it's used to cover another crime like fraud.
     
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  7. LoneRanger

    LoneRanger Road Train Member

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    co brokering is legal. Double brokering isnt. Simple as that. There’s a difference between the two.
     
  8. TallJoe

    TallJoe Road Train Member

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    I abhor double - brokering with the fullest of my heart but I don't think it is illegal as if there were some state or federal laws against it. It may be illegal in the sense that a broker-carrier or shipper - broker agreement prohibits it, and all of those I have ever signed explicitly did prohibit double-brokering. If they had not, however, there would not be any law against it, provided, of course, that the double-brokering party has also a brokerage authority.
     
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  9. ZVar

    ZVar Road Train Member

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    BennysPennys Thanks this.
  10. ZVar

    ZVar Road Train Member

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    Now that said, I'm not saying it's ethical or even a good idea. Just that it's not illegal.
     
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  11. TallJoe

    TallJoe Road Train Member

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    We know from experience that ethics is always a rather fluid topic to discuss. LOL.
    Some will say it is capitalism at works and there is nothing wrong with someone to have enough salesmanship acumen and be smart and, perhaps, foxy enough to secure a bunch of loads and then resale them for a profit. I am sure that someone could also venture an explanation of double - brokering merits to the society. LOL again.
     
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