What is a Broker Authority?

Unlike carriers who haul cargo belonging to others for compensation, brokers arrange for trucks to transport cargo belonging to others, for compensation. Most often, brokers utilize for-hire carriers to provide the actual truck transportation.

Brokers are required to obtain many of the same authority requirements as for-hire carriers. They must have a DOT Number, broker MC Number, BOC3 and UCR. However, while carriers are required to post proof of insurance in order to maintain a valid carrier authority, brokers must instead have a surety bond of at least $75,000 on file in order to have a valid broker authority. A surety bond is usually obtained through your insurance company.