Insurance Advice When Applying For Operating Authority
One of the first steps in starting your trucking business is applying for authority through FMCSA. There is a 21-day vetting process before you can be granted authority. You actually have 90 days to bind your insurance coverage but a lot of companies want to get up and running as soon as possible, so these guidelines are for those eager to get started. Today’s video topic is about when you should start your insurance and bind your coverage.
I like to provide quotes Days 1-5 and just talk with my client about their goals and directions for the business. My advice is to select which insurance payment plan works best for you. For my insurance brokerage, I write a lot of my new start up companies through Progressive which requires the trucking company to wire transfer the down payment or send a cashier’s check in the mail around Day 12 of the 21 day process. I submit your application around days 14-15 but I put an effective date of around day 17-18. So, although you pay your deposit on day 12, you aren’t actually paying until the effective date of day 18. I do this because generally there is a 24-28 hour process of reviewing and accepting your application, and then another 24-48 hour process of the insurance carrier submitting your mcs90/coverage and federal filings to FMCSA.
Check out my website at https://www.shawnnhelpingtruckers.com
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As always, you can count on the commercial truck insurance professionals at The Daniel & Henry Company to assist you through challenging claims and all of our insurance, risk management, and safety issues. Contact us today to discuss solutions for your transportation risk management program.