I contacted a representative for this insurance company. I indicated that if a freight broker does their "due diligence" they can easily and quickly find out the status of a motor carrier's insurance standing. It only takes 10 minutes.
Yet, the insurance rep told me that many people do NOT do their "due diligence". It is hard for me to believe this but I am realizing more and more that there are all sorts of individuals getting into freight brokering and not knowing what the heck they are doing. I talk to a few of them from time to time.
They have NO idea about their requirements and what is expected of them and they have NO idea what to expect from others. To be blunt, these people will not be around very long. Freight brokering is difficult enough when you KNOW all the requirements and expectations.
But there are people out there "winging it". All I can say is, Good Luck!
Each motor carrier, in addition to cargo insurance, is required to carry Bodily Injury and Property Damage (BI/PD) insurance by filing either a BMC91 or BMC91X. The amount depends upon the gross truck weight and the type of cargo being hauled.
And, like I said, it takes only 10 minutes to check this out. In the meantime, these insurance guys are making big bucks off of those freight brokers who are so ill-informed that they think they need this insurance coverage.
It's sort of sad.
Well written article.
Posted by: Zarifa | October 10, 2008 at 06:08 AM
I know this is off the topic, but I just wanted to say this....Despite the news decrying a 20% increase in prices for food ect... I rarely see it when I book loads. It is late July 08, and as I call on loads from brokers, the majority of them are trying to pawn off loads for $1.30 to 1.60 per mile in the Southeast areas like Atlanta ga, Sc, and NC. I am sorry, but on Wed I booked no loads for my 12 trucks because of this. I, like many that know how to run a business will not take cheap freight, and for the smucks that are taking these loads, your probably the same sorts of drivers that steal fuel and tires and are two months behind on your insurance and house payment... so to you smucks...keep up the good work, you will be out of business soon. I love the high fuel prices, it is eliminating the competition (well the smuck competition). I cannot do that with merely 12 trucks, but the economy and high fuel prices are doing it for me. I hope fuel goes to $10.00 a gallon because I will not take a load that does not justify my overhead and give me a resonable profit. But their are so many smucks that do, and I cannot wait until they are all gone and out of the busienss... viva la high fuel prices!!!! The law of nature is survial of the fittest! Only the strong and wise will survive these days of high fuel prices.
Paul
Posted by: Paul | July 27, 2008 at 02:28 PM
Thanks for passing this on to us John.
Posted by: Dale | July 27, 2008 at 09:50 AM