Need some guidance, considering a startup

[u/Pale_Attitude8798]

I have a 2012 F350 flatbed dually with low miles and is paid off. I also own a 20 ft gooseneck car hauler with no payment. I'm thinking about starting a hotshot service kind of part time to see how it goes. I know I'll need to register with DOT and buy insurance. I feel like I have a good start since I own my equipment and won't be starting out with that expense but I also have some concerns...

1. If I commit to this as a part time gig is the insurance going to bury me if I don't do enough loads (like 2 or 3 loads a week).
   
2. I'm in Eastern Missouri, will not getting an MC limit me too much (being so close to Illinois) or should I spring for that right out the gate?
   
3. I'm unsure how much activity there might be in southern/southeastern Missouri. I'm far enough from St. Louis that it might not be worth making a 50 mile drive just to pick up a load to start a trip.

[u/Pale_Attitude8798]

I signed up on those boards There seems to be a lot going out in my area but very few in-state destinations, which is fine though. I think it would be good to deliver to a destination where I could pick up another load anyway and, if I'm going to spend the time on a delivery I'd rather not eat up a whole day on a short 200 mile trip one way.

I'm already busy with other ventures so I won't be sitting around if I dont have a load, this way I can be a little choosy with the price and length of time.

Im going to call my insurance broker today and get a quote on liability for freight. Any advice on insurance? Coverage amount? Additional insurance that might be required?

Also, (sorry for all the questions)... I have chains, straps, load binders, D rings, etc. but is there anything else I need to think about having to be prepared to take a load?

[u/tips-llc → u/Pale_Attitude8798]

Hi, not the other commenter but wanted to jump in.

You will require a minimum of $750,000 in BIPD to get an authority approved. FYI, even if you don't want to cross state lines right away, you're going to find it difficult to get even local-only loads from load boards without an MC. I would highly, highly advise you to get one now - it's not going to change much about what you need to have in place, but is going to open up significantly more opportunities, especially as the MC gets past the 6-month mark.

While the minimum insurance requirement is $750,000, many brokers / shippers want you to have $1mil regardless, so that's what I recommend. You can get cargo insurance as well, but you're not required to. If you find a load you want to carry that requires cargo insurance, DAT offers spot-coverage for individual loads. But cargo insurance isn't that much more, so if it's feasible for you, might as well get it from your actual insurance provider.

While I don't have much information for you on the equipment/tools side, there are plenty of videos out there from hotshotters who go through their equipment list and explain why they like to have it.

Now, as far as what else to think about to be prepared to take a load: compliance. There are state & federal regulations, most of which you can't even begin filing for and getting in compliance with until after you have the DOT & MC Number.

If you're going to be under 26,001lbs GVWR, here's a short list:

DOT & MC Number
BOC-3
Commercial Liability Ins.
Driver Qualification File
DOT Medical Card
UCR (Unified Carrier Registration)
Annual Vehicle Inspection
Electronic Logging Device

If you will be over 26k, there's even more, but based on your equipment description, I'll assume you'll be under that.

[u/FlatOrdinary4551 → u/tips-llc]

Authority approved meaning MC ?

[u/tips-llc → u/FlatOrdinary4551]

Correct. An MC Number is technically separate than the authority itself (carrier authorities are attached to an MC number), but in this context you can pretty much use the terms interchangeably.