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Minimum Insurance Limits
Freight Forwarder
Broker Authority
Motor Contract Carrier Authority
Motor Common Carrier Authority

What is the definition of,

Contract Carrier
Common Carrier

What does this term mean?

Waiver of Liability Insurance Requirements

For Vehicles with a Gross Vehicle Weight Rating (GVWR) of 10,000 pounds or more:

$750,000 (BI &PD) for General Commodities (non-hazardous)
$1 Million (BI &PD) hazardous except class A & B explosives
$5 Million (BI & PD) Class A & B explosives, Hazardous materials transported in specified capacities in tanks or hoppers and/or any quantity of hazardous materials as specified in 49 CFR 173.403 of the Federal Motor Carrier Regulations.

For vehicles with a Gross Weight Rating (GVWR) of less than 10,000 pounds:

$300,000 (BI & PD) for general commodities except any materials listed below.
$5 Million (BI & PD) Any quantity of Class A or B explosives, for any quantity of Poison Gas (Poison A) or highway route controlled quantity of radioactive materials.
Common Carriers: Must carry minimum liability as listed above plus $10,000 cargo insurance.
Broker Authority: Brokers must maintain a surety bond or trust fund in the amount of $10,000. We can arrange this for you.

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Freight Forwarder

A person or entity that arranges for the truck transportation of cargo belonging to others, utilizing authorized for-hire carriers to provide the actual truck transportation. The forwarder does assume responsibility for the cargo from origin to destination and usually does take possession of the cargo at some point during transportation. Forwarders typically assemble and consolidate less than truckload (LTL) shipments into truckload shipments at origin and disassemble and deliver LTL shipments at destination. Process agents must be on file and Insurance requirements are the same as for common carrier unless forwarder seeks a waiver of liability insurance requirements.

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Broker Authority

A person or entity that arranges for the truck transportation of cargo belonging to others, utilizing authorized for-hire carriers to provide the actual truck transportation. The broker does not assume responsibility for the cargo and usually does not take possession of the cargo. A broker must have process agents on file and a surety bond or trust fund in the amount of $10,000.

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Motor Contract Carrier Authority

The ICC termination Act of 1995 defines contract carriage as truck transportation provided under a contract, but, effective January 1, 1996 it no longer distinguishes between common or contract carriers. However the act specifies that carriers still must register as either common or contract carriers. If you are unsure of which authority to secure, you may check with potential shippers to see if they have a preference.

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Common Carrier

A person or entity providing motor transportation to the general public. Common carriers no longer have to file tariffs but must have cargo insurance on file in addition to liability insurance as noted under Minimum Insurance Limits.

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Contract Carrier

A person or entity providing motor transportation for compensation under contract. Must maintain insurance as noted under Minimum Insurance Limits.

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Waiver of Liability Insurance Requirements

Where a Freight Forwarder certifies they will not:
A) Own or operate any motor vehicles upon the highways in the transportation of freight.
B) Perform transfer, collection, or delivery services.
C) Have motor vehicles operated under its direction and/or control while performing transfer, collection or delivery services.

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