Truckers and Travelers
Trucking Information Resource
Hello, Fellow Drivers! If you read yesterday’s blog (11/5/09) on how to get trucking authority, then you will be able to follow this blog and decide if you want carrier authority, broker authority (steps are below) or both. In any case, you will want to bookmark the federal website that gets you started on your way to starting your trucking business. That site is www.fmcsa.dot.gov. You can also visit www.truckersandtravelers.com for further assistance and email the owner of the site. You be the one that decides who will assist you. Empower and educate yourself of the trucking authority process. Enjoy the read and remember…be safe out there!
Broker Authority
Requirements of obtaining your broker authority within the minimum 16 days:
- Register for a Motor Carrier (MC) number issued by the Federal Motor Carrier Safety Administration (FMCSA)
- File Process Agents (BOC 3 filing) for each state
- Obtain a $10,000 Surety Bond or Surety Trust
- UCRA Registration
Refer to www.truckersandtravlers.com for assistance with doing steps 1 and 2 yourself.
Step 3 – Surety Bond or Trust
You are responsible for obtaining your own surety bond or surety trust. You can choose either a bond or trust, however you will need to obtain one or the other within the first two weeks after the MC number is filed to avoid any delays. To find a reputable surety bond company, do a Google search on surety bond for trucking and you will find companies to assist you with this process.
What is a Surety Bond?
It is an amount of money that you post to guarantee that you will do something you’ve promised to do.
Freight Brokers must obtain a Broker Authority. In order for the Broker Authority to be released as “Active”. there are 2 items that must be on file with the FMCSA. You must have a BOC-3 process agents and a $10,000 Broker Surety Bond.
The Broker Bond is evidence of financial responsibility. Basically the Surety Bond guarantees that you will meet all your contractual obligations to your customers and that you can pay any claims immediately.
Either the BMC 84 “Property Broker’s Surety Bond” or a BMC 85 “Property Brokers Trust Fund Agreement” must be on file, both will satisfy the Federally mandated $10,000 insurance/surety requirements for your Property Broker Authority.
You would need to contract with a bonding company or use your own resources. Evidence of a surety bond must be filed using a BMC 84, evidence of a Trust Fund with a financial institution must be filed using form BMC 85.
These items must be on file in order to activate your Broker Authority.
A Bond is not insurance that you purchase; it is the collateral for a promise.
We work with a “Highly Reputable” Bonding Company that has several different financial plan options for you to help you obtain your required Broker Bond. They currently hold over 50% of the Bond market, they are in excellent standing with the Better Business Bureau, they are very experienced and have many references for verification.
Most new Broker’s do not have this kind of money, if you need help getting a Broker Bond, contact us and we will help you immediately.
Do not let the $10,000 Broker Bond prevent you from pursuing a Freight Broker Business of your own, there are different plans to pick from that fit your financial needs.