Need Help Obtaining Interstate Carrier Operating Authority?
Transportation companies must comply with a myriad of local, state and federal laws. At Clos, Russell & Wirth, P.C., our lawyers help new entrants in the trucking industry complete the requisite applications and filings with the federal government for authority to conduct business in interstate transportation.
In addition, we can provide business formation advice concerning the benefits of operating your transportation business as a corporation or a limited liability company.
The FMCSA Application
The surface transportation of most manufactured or processed goods in interstate or foreign commerce is subject to comprehensive federal regulations and rules set forth in the Federal Motor Carrier Safety Act (FMCSA). To obtain interstate authority and transport goods across the country, you must have interstate authority from the FMCSA.
You must also be familiar with all DOT regulations relating to the safe operation of commercial vehicles. By submitting your application, you are verifying that you have:
- A compliance system in place to ensure all parts of your operation meet Federal Motor Carrier Safety Regulations (FMCSR)
- A copy of the FMCSR on hand
- A driver safety training program in place
- Prepare and regularly maintain an accident register
- A system in place to oversee driver qualification requirements
- Policies and procedures in place to comply with DOT regulations governing driving and operational safety of motor vehicles, including drivers’ hours of service and vehicle inspection, repair and maintenance
- A process for handling alcohol and controlled substances testing
Complying With Insurance And Process Agent Regulations
FMCSA regulations also require that you possess appropriate insurance coverage and have an agent for service of process in place. The amount of insurance coverage required varies depending upon the authority you are seeking. The law requires motor carriers to have public liability insurance in the amount of $750,000.00, $1 million or $5 million. The transport of household goods also requires cargo insurance.
A process agent serves as a legal representative that can accept court papers if a lawsuit is brought. You must have a process agent in place in each state, you are authorized to do business in.
Note, in order to comply with FMCSA regulations, freight brokers must obtain a security bond or a bank trust agreement and freight forwarders must obtain liability and cargo insurance.
Ensure Regulatory Compliance With Our Help
Whether you need to complete the initial application process, or you need to update your coverage and agents remain compliant, we are ready to help. We invite carriers, brokers or freight forwarders to contact our firm online or call 877-354-0660 to schedule a consultation with an attorney.