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What is a Broker Authority?

Unlike carriers who haul cargo belonging to others for compensation, brokers arrange for trucks to transport cargo belonging to others, for compensation. Most often, brokers utilize for-hire carriers to provide the actual truck transportation.

Brokers are required to obtain many of the same authority requirements as for-hire carriers. They must have a DOT Number, broker MC Number, BOC3 and UCR. However, while carriers are required to post proof of insurance in order to maintain a valid carrier authority, brokers must instead have a surety bond of at least $75,000 on file in order to have a valid broker authority. A surety bond is usually obtained through your insurance company.

Unlike carriers who haul cargo belonging to others for compensation, brokers arrange for trucks to transport cargo belonging to others, for compensation. Most often, brokers utilize for-hire carriers to provide the actual truck transportation.

Brokers are required to obtain many of the same authority requirements as for-hire carriers. They must have a DOT Number, broker MC Number, BOC3 and UCR. However, while carriers are required to post proof of insurance in order to maintain a valid carrier authority, brokers must instead have a surety bond of at least $75,000 on file in order to have a valid broker authority. A surety bond is usually obtained through your insurance company.

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