Commercial Trucking

Truckers are the third largest motorist group using Nevada's highways, after commuters and tourists. Trucking is different than driving around the city in a work van. Drivers often haul a large amount of merchandise or materials, across state lines, for long hours. The Federal Motor Carrier Safety Administration (FMCSA) — the governing body over trucking — requires certain insurance minimums needed by owners before their trucks can even hit the road.

In addition to filing an application for operating authority, all applicants for motor carrier, freight forwarder, and broker authorities must have specific insurance and legal process agent documents on file before the FMCSA will issue the authorities. The required filings vary, based on the types of registrations involved. Below is a list of pre-registration forms, followed by an explanation of which types of registrants are subject to filing those forms.   

Liability and cargo insurance forms must be submitted directly (online) by the home office of the insurance company furnishing the coverage. I need to know what authority you while I to create the right insurance documents for you. 

TYPES OF OPERATING AUTHORITY (From the FMCSA site):

Motor Carrier of Property (except Household Goods)

An authorized for-hire Motor Carrier that transports regulated commodities (except household goods) for the general public in exchange for payment. Motor Carriers of Property (except Household Goods) must file proof of public liability (bodily injury and property damage — BI & PD) with FMCSA in order to obtain interstate Operating Authority. Cargo insurance is not required.

Motor Carrier of Household Goods (Moving Companies) 

An authorized for-hire Motor Carrier that transports only household goods for the general public in exchange for payment. Household goods are personal items that will be used in a home. They include items shipped from a factory or store, if purchased with the intent to use in a home, and transported at the request of the householder who pays for the transportation charges. Motor Carriers of Household Goods must file proof of both public liability (BI & PD) and cargo insurance with FMCSA in order to obtain interstate Operating Authority. 

Broker of Property (except Household Goods) 

An individual, partnership, or corporation that receives payment for arranging the transportation of property (excluding household goods) belonging to others by using an authorized Motor Carrier. A Broker does not assume responsibility for the property and never takes possession of it. 

Broker of Household Goods 

An individual, partnership, or corporation that receives payment for arranging the transportation of household goods belonging to others by using an authorized Motor Carrier. A Broker does not assume responsibility for the household goods and never takes possession of the goods. Household goods are personal items and property that will be used in a home.  An individual, partnership or corporation requires registration as a household goods broker if the motor carrier providing transportation will also provide some or all of the following additional services, binding and nonbinding estimates, inventorying, protective packing and unpacking of individual items at personal residences and loading and unloading at personal residences. 

United States-based Enterprise Carrier of International Cargo (except Household Goods)  

A company that transports international cargo (excluding household goods) and is headquartered in the United States, but is owned or controlled (greater than 55%) by a Mexican citizen or resident alien. International cargo must originate in or be destined for a foreign country. 

United States-based Enterprise Carrier of International Household Goods  

A company that transports international household goods and is headquartered in the United States, but is owned or controlled (greater than 55%) by a Mexican citizen or resident alien. Household goods are personal items that will be used in a home. They include items shipped from a factory or store, if purchased with the intent to use in a home, and transported at the request of the householder who pays for the transportation charges. International household goods must originate in or be destined for a home in a foreign country. Applicants for authority to operate as motor carriers of household goods or freight forwarders of household goods also must offer arbitration as a means of settling loss and damage disputes on collect-on-delivery shipments. (See 49 U.S.C. 14708.) 

• Freight Forwarder Authority 
• Motor Passenger Carrier Authority 
• Non-North America-Domiciled Motor Carriers 
• Mexico-based Carriers for Motor Carrier Authority to Operate Beyond U.S. Municipalities and Commercial Zones on the U.S.-Mexico Border (Includes instructions and application in Spanish) 
• Mexican Certificate of Registration for Foreign Motor Carriers and Foreign Motor Private Carriers Under 49 U.S.C. 13902 

Last updated: Thursday, November 2, 2017 

The type(s) of Operating Authority requested will impact the type and level of insurance that is required by FMCSA. Therefore, carefully select only the type(s) of Operating Authority relevant to the business and read the instructions before filing. 

According to the Federal Motor Carrier Safety Administration (FMCSA), commercial trucking companies must obtain an interstate operating authority number if they meet certain criteria. The interstate operating authority number, also known as an MC number, is in addition to the requirement of obtaining a Department of Transportation (DOT) number. 

To learn more go to Federal Motor Carrier Safety Administration (dot.gov).

The FMCSA monitors and ensures compliance with regulations governing both safety (all carriers) and commerce (for-hire carriers). Companies may find they are subject to both registration requirements (USDOT Number and MC Number) or either one separately.  

Applicants should be prepared to contact their agents to request filing of the required forms immediately after obtaining their designated docket number.   Applicants are cautioned to ensure that the name and address of the business as set out in all pre-registration filings match exactly the name and address provided in their application for operating authority filings. Any deviation will result in rejection of the supplemental pre-registration filings. 

Liability and cargo insurance forms must be submitted directly (online) by the home office of the insurance company furnishing the coverage.  The type(s) of Operating Authority requested will impact the type and level of insurance that is required by FMCSA. Therefore, carefully select only the type(s) of Operating Authority relevant to the business and read the instructions before filing.  Here are a few of the authority types for truckers: 

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• Bodily injury liability coverage – pays for bodily injury or death resulting from an accident for which you are at fault and provides you with a legal defense.
• Property damage liability coverage – provides you with protection if your car accidentally damages another persons property. It also provides you with a legal defense.
• Combined single limit (CSL) – Liability policies typically offer separate limits that apply to bodily injury claims for property damage. A combined single limits policy has the same dollar amount of coverage per covered occurrence whether bodily injury or property damage, one person or several.
• Medical payments, no-fault or Personal Injury Coverage – usually pays for the medical expenses of the driver and passengers in your car incurred as a result of a covered accident regardless of fault.
• Uninsured motorist coverage – pays for your injuries and, in some circumstances, certain property damage caused by an uninsured or a hit-and-run driver. In some cases, underinsured motorist coverage is also included. This is for cases in which the at-fault driver has insufficient insurance.
• Comprehensive physical damage coverage – pays for damage to or replacement of your car from theft, vandalism, flood, fire, and other covered perils.
• Collision coverage – pays for damage to your car when it hits or is hit by another object.
• Inland Marine - If your business frequently ships products or equipment, you may want to consider purchasing inland marine insurance. This type of coverage is especially important if you ship high-value products or materials, which are often excluded from basic property coverage. Inland marine insurance can cover a wide range of specialty equipment and products, including:

1. Computers, everything from servers to laptops.
2. Communications and networking equipment.
3. Construction and contracting equipment.
4. Medical and scientific equipment.
5. Photography equipment.

When weighing the need for inland marine insurance, consider the nature of your business and operations. Inland marine insurance isn’t just for companies that ship products to retailers and customers. For example, if you have a valuable tradeshow booth that is frequently shipped around the country and stored offsite by a vendor, you may want the protection provided by inland marine insurance. In addition, if someone else’s property is temporarily in your possession, inland marine insurance can provide coverage against the loss of this property. Special inland marine coverages include:

• Motor Truck Cargo Coverage—Keeps clients’ goods protected while your business transports and delivers them and provides insurance on the freight or commodity hauled by a For-hire trucker. It covers your liability for cargo that is lost or damaged due to causes such as fire, collision, or striking of a load.
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• Bailee’s Customer Coverage—Protects clients’ property that is left in the care of your business; e.g., if you operate a warehouse or repair shop.
• Builder’s Risk—Protects structures and materials during new construction projects or renovations.
• Exhibition and Fine Art Coverage—Keeps valuable items protected while on exhibit, in transit or on loan.
• Installation Floater—Covers materials from the moment they are loaded onto a truck until they are put to use or installed.

In any profession, here are some ways to get your commercial auto or trucking policy premium lower:

• Hire drivers with flawless driving records. Verify at https://www.dmvnv.com
• Always keep your payments current. Most carriers add late fees to late payments.
• Think safe driving first – a speeding ticket can be expensive for several years
• Implement and require safe driving classes for yourself and employees
• Once you have had you CDL for a certain period of time, you may be able to get a discount

Protecting your trucking business or yourself as a for-hire trucker means insuring yourself properly. Whether you need primary truck insurance or need to add general liability, insurance doesn’t have to be an extraordinary expenditure — and adding it to your business costs could help you survive the financial burden of an accident or disaster.

(702) 541-0882 Call or Text for An Business Auto Insurance Quote Today!