There are several types of operating authority. You should carefully choose the types of authority for your business because they impact what kind of insurance you need and how much you must have in coverage.
You can see the list of authority types and their descriptions below.
Motor Carrier of Property (except Household Goods): a for-hire motor carrier that hauls regulated freight, except household goods, for compensation. Motor Carriers of Property must file proof of public liability (bodily injury and property damage – BI &PD) with FMCSA (Federal Motor Carrier Safety Administration). Cargo insurance is not required.
Motor Carrier of Household Goods (Moving Companies): a for-hire motor carrier that hauls only household goods for compensation. The term ‘household goods’ describes personal items used in a home. They also include items transported from a store or factory, if they are brought to be used in a home and shipped at the request of the householder who pays for the delivery. If you are a motor carrier of household goods, you must file proof of both public liability (BI &PD) and cargo insurance with FMCSA to get an authority to operate.
Broker of Property: an individual or company arranging other people’s property transportation (excluding household goods) for compensation by using a motor carrier. As a Broker of Property, you are not responsible for the property and do not take possession of it.
Broker of Household Goods: an individual or company arranging other people’s household goods transportation for compensation by using a motor carrier. As a Broker of Household Goods, you are not responsible for the goods and do not take possession of them.
You are required to register as a Broker of Household Goods if you provide any of the following:
– Estimates (binding and non-binding),
– Packing and unpacking items at personal residences,
– Loading and unloading at personal residences.
US-based Enterprise Carrier of International Cargo: a company that ships international cargo (except for household goods) and has headquarters in the US while being owned by a Mexican citizen or resident. International cargo originates or is destined for a foreign country.
US-based Enterprise Carrier of International Household Goods: a company that ships international household goods and has headquarters in the US while being owned by a Mexican citizen or resident. International household goods originate or are destined for a foreign country. They also include items transported from a store or factory, if they are brought to be used in a home and shipped at the request of the householder who pays for the delivery.
Other authorities include:
– Motor Passenger Carrier
– Freight Forwarder (FF)
– Non-North America–Domiciled Motor Carrier
– Mexican Certificate of Registration for Foreign Motor Carriers and Foreign Motor Private Carriers
– Mexico-based Carrier for Motor Carrier Authority to Operate beyond US Municipalities and Commercial Zones on the US-Mexico Border (MX)
At DOT Operating Authority we are always happy to help you get the right type of authority! Also, we will assist you with every aspect of filing for authority and provide professional advice.
To learn more about the various types of Interstate Authority, watch the video below.