You can call it brokering, forwarding, interlining, networking, agent hand-offs, or some term we haven’t heard of yet. The transportation industry is full of companies doing this kind of work, from those who specialize in it to delivery companies that want to offer one-stop-shop service to customers and take on jobs that they have to farm out to others. Here’s the thing: If you’re not doing it right, then you are taking on much more risk than you might realize.
Tendering freight to another carrier without proper authority from the FMCSA (Federal Motor Carrier Safety Administration) is punishable by a $10,000 dollar fine PER shipment,
And business owners may be personally liable. Compare that to your revenues from this work. And be advised, the government has set up a website and hotline where shippers (and competitors) can report alleged wrongdoing.
If Risk Strategies is not aware of the full scope of what you are doing, your insurance may not cover you fully or at all. Even if coverage applies, if your operations take your underwriters by surprise you could find yourself denied insurance at renewal and having to pay more for substitute coverage.
Now for the good news; Doing things right is pretty straightforward if you have good sources of advice. Simply make a resolution to take care of the issues and you’ll soon be back in the fast lane profiting from all these different services.
Learn how easy doing it right can be. Get the full whitepaper free by clicking here