The Insurance Zone 6.2
By Shelly Benisch
May 11, 2009 - 9:45:53 AM
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Question
from Brian G in Tampa, FL: I have seriously been considering moving on
from the company I’m leased on to and starting my own authority. What
do you think?
Brian,
in these tough times, it’s definitely tempting to see the grass as
greener hauling for yourself under your own MC number. If you have a
lot of connections, are very well organized and have some capital
behind you, it’s doable. Whether it’s worth it right now is another
story.
As
everyone already knows, runs are at an all time low. To make matters
worse, insurance for your own authority is often double what you’re
paying now as a Leased on Operator. On top of your own Primary
Commercial Auto Liability which will include your Filings for your
Motor Carrier Number, you’ll need Cargo Coverage and possibly General
Liability as well.
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Your largest challenge, however, is simply getting the runs you need to maintain a profitable Expediting Business of your own. While it can sometimes appear that the company you’re leased on to now makes all the money, remember that there’s a lot going on behind the scenes. They are locating and setting up your runs which include dispatch, billing, tracking and collections. In tough times it’s hard to squeeze blood from a turnip, and I know of motor carriers complaining that they’re spending half their time just trying to collect from runs 2 or 3 months ago.
While the allure of having your own authority can be tempting, we generally recommend most Owner Operators lease on with one of the excellent carriers we list as a link to their recruiters on our website www.CommercialInsSolutions.com
Every company has a different “personality” that suits different owner operators. If you don’t like one, try another until you find a match.
For now, take time to network with as many other Owner Operators and Expediting Carriers you can. Then when good times come back, you’ll be in a better position emotionally and financially to start your own Expediting Business if that’s still an avenue you’d like to explore.
We’re always available here to answer your questions if you’d like to talk.
Expediting Tip of the Day – Network, network, network…you never know who you’ll meet or what doors will open for you down the road!
© ExpediteNow.com
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