How Can I Make Sure My Freight Business is Compliant?
One of the biggest risks a freight business will encounter is compliance risk. Because trucking is a heavily regulated industry, you don’t want to take any chances when regarding your compliance. It’s important to make sure you have met all of the government’s requirements. Here are three tips to make sure your freight business is operating legally and with the necessary authority.
Have the Proper Insurance
As a business owner, it’s important to have the right types of insurance. Purchasing the necessary coverage will protect you from unexpected events that could compromise your business.
In addition to business insurance, you should invest in specialty insurance such as carrier insurance and freight liability insurance. Freight insurance in particular is useful because it protects your customers and your business from the negative financial consequences resulting from lost or damaged freight.
There are many different ways you can secure this coverage, but one of the most useful and protective options is a business insurance package that includes freight insurance. This option will offer coverage no matter who is at fault for the damage.
Have Biennial Updates
The Federal Motor Carrier Safety Administration (FMCSA) requires all freight companies to update their information every two years. These biennial updates are required, even if your freight business has not changed its information in the last two years. If you don’t update your information every two years, you could be fined up to $10,000. You can update your information for free online, so completing biennial updates is one of the easiest ways to keep your freight business compliant.
Keep Detailed Records
Record keeping is critical to ensuring that your freight business is compliant with all regulations. Detailed records will help both you and your clients stay safe. Make it a habit to properly document all major business-related transactions and decisions. Keep track of all your permits, licenses, insurance certificates, and registrations. You should also be aware of the heavy use tax regulations associated with trucking, and keep your tax forms on file.
Ideally, these records would be stored digitally and backed up in a secure place. You should keep these records for three years before deleting or replacing them.
As you invest in the proper insurance, complete biennial updates, and keep detailed records, you’ll have the peace of mind that comes from knowing you did your due diligence. You and your freight business will be able to minimize risk, operate safely, and perform to the best of your abilities.