Before any trucking firm or freight forwarder can start their operations within the confines of the law, they must first have the necessary licenses, trucking insurance policies, etc to allow them to operate legally. Though the process may take time and money (due to processing fees etc.), a legitimate trucking firm is better off than one that defies the law and operates illegally.
Where Do I Start?
The first thing a truck business owner or operator must apply for is a US DOT number. This type of number serves as a unique marker for all commercial vehicles that have registered with the Federal Motor Carrier Safety Administration. In some states, US DOT numbers are not required for trucking firms whose operations are limited within the borders of a certain state.
Do I Always Need a US DOT Number?
In some states, particularly in California, intrastate trucking firms are required to secure motor carrier permit numbers. The same rule applies to trucking companies who are based outside California but operate within the state. Application for a motor carrier permit number requires several trucking insurance policies, including liability insurance and workers compensation insurance.
Time for Insurance
In regards to trucking insurance, federal law mandates that trucking companies obtain Primary Liability Coverage before they can begin or resume operations. Other types of essential insurance policies may include cargo insurance and physical damage coverage. Additionally, other types of insurance are optional and can be purchased for additional coverage.
Different States, Different Requirements
In some states, such as New Mexico, New York, Oregon, and Kentucky, their basic trucking requirements include other documentations not mentioned above. Therefore, it is essential to determine the various requirements that each state imposes for transporting cargo.