New MC number: will brokers work with you?

Some will and some won’t yet. A broker can set a minimum authority age before it loads a new MC, and each broker has its own number. Ask. Here is what to have ready, and what to refuse.

Ask each broker two things

• What is your minimum authority age?
• What do you need for carrier setup?

A “no” today is not a “no” for good: that gate is about time on your authority. Move to the next broker and keep the list.

Setup packet: have it ready

• Your FMCSA authority letter (MC number). The broker checks it against the registry.
• A W-9 with the same legal name and EIN as your FMCSA record. A mismatch can hold up setup.
• A certificate of insurance with your auto liability and cargo limits. A broker may ask to be listed as the certificate holder; your insurance agent issues that.
• A Notice of Assignment, if you factor. It tells the broker to pay your factoring company.
• The broker–carrier agreement. Read it before you sign: payment terms and any fees.

Insurance

For for-hire interstate general (non-hazardous) freight in a vehicle with a GVWR of 10,001 lb or more, the federal minimum is $750,000 auto liability (49 CFR § 387.9). Vehicles rated under 10,001 lb fall under other rules: ask your insurance agent and the broker. A broker can require more, for example $1 million liability and $100,000 cargo, so ask before you buy a policy.

Before each load

• Check the broker: authority, bond, and the number to call.
• Know your cost per mile, so you can tell what a rate leaves you.
• Keep every rate confirmation, BOL and invoice. You’ll need them if a broker doesn’t pay.