The Federal Motor Carrier Safety Administration (FMCSA) currently does not allow motor carriers to broker loads unless they first apply for and receive a license as a property broker. If you are a new broker, that means you must complete an application for broker authority using the Unified Registration System (URS) of the FMCSA. You will need to locate proof of insurance coverage to do so. The FMCSA also requires new applicants to submit Form BMC-84, also known as Surety Bond, and Form BMC-85, also known as the Trust Fund Agreement.
Instructions for companies that already have Motor Carrier authority.
You will still use the URS if the FMCSA has already granted you motor carrier authority. However, you will fill in your current number from the United States Department of Transportation (USDOT) on an OP-1 form but leave the spot asking for the motor carrier (MC) number blank. After processing the application, the FMCSA will issue you a separate number to use as your broker authority. You will then be able to broker loads as well.
10-Day Protest Period.
After the FMCSA issues you a separate number to allow you to broker loads, it will publish this information in its register. Anyone can file a claim in that 10-day period as long as they state why they believe you should not receive a license. If you do receive a complaint, check with the FMCSA to see how to proceed.
Obtain insurance within 90 days.
To make your new MC number valid, you must obtain the proper type of insurance within 90 days of the FMCSA publishing your information in its register. If you miss the deadline, the FMCSA will cancel your MC number and not return your application fee. Fortunately, we have a team of transportation professionals who are pros at helping trucking businesses get the coverage they need. We can help you get big rig insurance – just fill out our online form or send us a LiveChat to get started.
Don’t forget to assign a process agent.
A process agent is a person authorized to receive legal notifications on behalf of the trucking business as well as take specific actions under its name. This is necessary in case anyone pursues legal action against the motor carrier. The law requires motor carriers to assign someone in the organization the role of process agent in every state that the company does business. However, a motor carrier can also legally act as its own process agent. You just need to list the name on the form when applying for the proper license.
Save time and money on your big rig insurance.
Our team of truck insurance agents has worked with many, many truckers over the years to help them locate and apply for insurance policies specific to their situation. We would be happy to assist you in getting insurance coverage for your truck business. Just complete this quote request form or give us a call to get started with getting quotes from several insurers.
Source:
https://ask.fmcsa.dot.gov/app/answers/detail/a_id/211/related/1
https://www.fmcsa.dot.gov/faq/how-would-motor-carrier-also-brokers-loads-apply-broker-authority