Question
Connie, or anyone who knows...
I am thinking of adding brokerage authority to my trucking operations as I have some customers that have more freight than my one truck can haul. My question is, do most brokerages carry excess liability and/or cargo insurance coverages or are the coverages that the carriers I select sufficient to protect me and my customers? How much will $100k/excess cargo coverage cost me, generally? Should my regular truck insurer be able to furnish this type coverage to me? Thanks for any info. RSDREAMS@AOL.COM
Answer
If you plan to obtain your Brokerage Authority, please check with your current insurance carrier to see how this will impact your truck insurance. Some truck insurance carriers, have issues with a small motor carrier holding motor carrier authority and brokerage authority in the same name.
With the Brokerage Authority, you will be asked to post a $10,000 deposit with FHWA or a Bond. The bond can be secured with or without collateral. To obtain without collateral requires excellent credit these days. Check with your agent to see what their bonding company requirements are.
As for Contingent Cargo and Contingent Liability, they can be pricey, especially for a star-up operation. Again, your agent can work with you to determine the best route for you to take.