Current motor carrier adding brokers authority

Yup, just $300, get bond posted and you are good. Would recommend looking at contingent insurance. It can get expensive but if you are doing it as a real business then you want to be covered.

I have had some people tell me to get seperate DOT # but customers I have talked to seem to feel better about being a carrier first and broker second. Easier to get food in the door as a carrier.

 

I have never heard that it worked that way. They are running under their authority. That is what the service failure would go under. Ever have the DOT ask for information on the broker you got the load from during an inspection? All they ask for that could be tied to me is BOLs.

And as a carrier I kinda wish this was the case. Would put a lot of the shoddy carriers out of business.

 

OH, Not really. If it is getting out of the norm then I am not doing something right as a broker. Independent O/O beat large carrier records by a huge margin. And that is likely going to be most of the people I deal with. Plus my accounts are the size that they understand the difference between a brokered load and me.

I am also going to be only taking loads that offer better rates so I can be a little picky about who use.

 

That is how it wold work in theory. But it the real world, regardless if the carrier has coverage or not you will be sued. If the coverage is bad or for some reason doesn't cover, they will come after you. I started looking at it because I have a customer that requires it. And as I looked into it I learned that independent brokers go out of business because they can't get enogh customers to earn a living, they get sued over a load and mismanagement of money. In that order.

And even if they don't win the insurance carrier is going to pay for the attorney. Without insurance you will be paying.

 

The REAL question is will your trucking liability and cargo insurer cancel you if you start a brokerage under the same MC#. 9 out of 10, the answer is yes. Check with your provider before you file for your broker authority. If they have no problem, then your GTG. If they do, shop for insurance, but most likely you'll need to start a new company. This was the case for me. Making the names similar will generally make customers more comfortable such as Joe Bob's Trucking and Joe Bob's Logistics. It can also separate service failures from outside carriers like you're worried about.

 

If you make it seperate you would also have the option of selling one of the other later on down the road. Not that you are planning on it but it would leave your options open.