Carrier vetting guide · Updated
How to Verify a Carrier's Operating Authority and Insurance
Confirm the carrier's authority status is active for the right type (common, contract or broker), that liability insurance on file meets the federal minimum for the freight, and then call the insurer listed to confirm the policy is current.
Operating authority status
Authority can be active, pending, or revoked. Pending authority means the company has applied but cannot legally operate for hire yet. Revoked authority — often for lapsed insurance — means it must stop. A carrier with revocation pending is one insurance cancellation away from being out of service.
- Common authority: may haul for the general public.
- Contract authority: may haul under contracts with specific shippers.
- Broker authority: may arrange transportation but not haul it.
Federal insurance minimums
These are minimums. Most shippers and brokers require $1,000,000 in auto liability and $100,000 or more in cargo coverage by contract, so check your own requirements too.
- General freight in vehicles over 10,001 pounds: $750,000 bodily injury and property damage (BIPD) liability.
- Oil and certain hazardous materials: $1,000,000.
- Most other placarded hazardous materials: $5,000,000.
- Passenger carriers: $1,500,000 or $5,000,000 depending on seating capacity.
- Brokers and freight forwarders: a $75,000 BMC-84 surety bond or BMC-85 trust fund.
Confirm with the insurer
The filing on record shows that a policy was filed with FMCSA; it does not prove the policy covers the specific truck, driver or commodity. Ask for a certificate of insurance sent directly from the agent, with you named as certificate holder, and call the agent on a number you looked up yourself.
Red flags
- Authority granted in the last few weeks combined with a large load offer.
- Insurance cancellation date on file, or an insurer you cannot reach.
- A certificate of insurance emailed by the dispatcher rather than the agent.
- Contact details on the certificate that differ from the FMCSA record.
Frequently asked questions
How long does new operating authority take to become active?
Applications are published in the FMCSA Register for a protest period of about 10 days, and authority only becomes active once insurance and process-agent (BOC-3) filings are on record.
Does active authority mean a carrier is safe?
No. Authority is a legal permission. Safety performance comes from inspection, out-of-service and crash history, which you should review separately.
Check a carrier now. Free, no login.
Look up a USDOT or MC number