Insurance companies typically ask if your Motor Carrier and Brokerage Authorities are set up as separate entities.
The reason separate entities are important comes down to litigation issues. Under the same entity, the Motor Carrier could be found liable for the operations of the Brokerage. Law and insurance professionals are always considering the events of a loss.
• Claimants going after the “Deepest Pocket”
• Courts Don’t Hesitate to Impose Motor Carrier Liability
Separate entities for Brokerage and Motor Carrier Authorities is a best practice.