Question
I am looking into the legal requirements of becoming a broker. Not for myself but for someone close. What insurance does a broker need to have? I have heard it is simular to that of a truck owner. Also what are the typical cost for the required insurance? Including down payment and monthly payments on an average if applicable.
Basically they will be doing all types of freight including FB and hotshot. They will not be doing household goods or autos. The majority of the freight being temp controlled and dry box.
Thanks for any info.
Answer
Basically, the broker needs to put up a deposit with the FHWSA or post a $10,000 Property Broker's Bond. Bond usually costs about $500.
The other coverages you make reference to Liability & Cargo are basically Contingent Liability and Contingent Cargo. Pricing on this might be a little tougher since it is based on specifics which may not be readily available for the underwriter.