Basic Guide to Starting a New Trucking Company
Step 1: Determine the Type of Authority Needed
Before you begin, identify the type of authority required for your operations. Common types include:
- Motor Carrier of Property (except Household Goods): For transporting general freight.
- Motor Carrier of Household Goods: For transporting personal household items.
- Broker of Property or Household Goods: For arranging freight transportation.
Step 5: Secure the Necessary Insurance
Before your authority is granted, you must meet FMCSA insurance requirements.
- Public Liability Insurance: Coverage requirements vary:
- $750,000: General freight (vehicles over 10,000 pounds).
- $1,000,000: Transport of oil or hazardous materials.
- $5,000,000: Specified hazardous substances.
- Cargo Insurance: Minimum of $5,000 per vehicle and $10,000 per occurrence for household goods carriers.
- Broker Surety Bond: $75,000 bond or trust fund for brokers.
Your insurance provider must submit the appropriate forms:
- BMC-91: Public Liability
- BMC-34: Cargo Insurance
- BMC-84: Surety Bond