You run your own truck, you also opened a freight brokerage, and now your truck insurance came back declined because of the brokerage. Maybe the note said "related entity". Maybe it said "freight brokerage operation". Either way, the truck did not change, and the answer still went from maybe to no. This page explains what underwriters see, what you can fix, and what to send before the next market looks at it.
Key takeaways
- Underwriters look up every company tied to your name, address and phone, not just the one on the application.
- An active broker authority under the same owner can stop a liability quote, even if the brokerage is small.
- Disclose the brokerage on day one. A market that finds it on its own may decline and stop there.
- If the brokerage is not doing business, the public record should say so before you shop again.
Got a decline like this? Send us the decline and both numbers here.
What is a related entity in trucking insurance?
A related entity is any other company that shares an owner, officer, address, phone number, trucks or drivers with the company asking for insurance. Underwriters check for them on the federal record before they price a file.
A freight brokerage is a common one. Broker authority is a separate registration from your motor carrier authority. Before FMCSA registers a broker, the broker needs a surety bond or trust fund on file, filed on Form BMC-84 or BMC-85 (49 CFR 387.307). If the brokerage is its own company, it gets its own number and its own record, and that record sits right next to your carrier record.
What underwriters do when they find a brokerage
The first step is a search. An underwriter, or the insurer's online rater, runs your USDOT number and pulls every number that shares your details. If a broker authority shows up as active under the same owner, the file gets a second look.
What happens next depends on the market:
- Online raters may stop at the eligibility step with a short "related entities" message. There is no one to explain the brokerage to.
- Hand underwriters may ask questions about the brokerage, then decide. Some will still pass.
- Wholesale markets may decline in one line. The decline notes we see are short, like "related entity" or "pass due to the freight brokerage operation".
The notes rarely say more than that. The decline is about the ownership link on the record, not about how you drive.
What you can do about it
You have three honest paths. Pick the one that matches what the brokerage really does.
- The brokerage is active and staying open. Disclose it on every application, with its USDOT and MC numbers. Write two or three lines on how it runs: who books the loads, whether your own truck hauls loads it brokers, and how the money is kept apart. Then shop markets that review files by hand. Instant raters will keep stopping.
- The brokerage never really started, or has stopped. Ask FMCSA how to close that authority. Until the public record shows it inactive, underwriters will treat it as active, no matter what you tell them.
- The brokerage belongs to a family member or partner. Say so in writing, with who owns what. A shared address or phone is enough to trigger the search, so the explanation has to come from you.
Whichever path fits, answer the related-company question on the application truthfully. A missing related company found later is a much bigger problem than the brokerage itself. Not sure which path fits? Send us both numbers and the decline and we will tell you what a market will ask.
A similar account from our desk
This past September a one-truck interstate carrier came to us for liability, physical damage and cargo. The owner had opened a freight brokerage earlier in the year, under a separate company. It shared his address and phone numbers on the federal record. It was not on his application.
Within the first days, one insurer's online rater stopped at its eligibility step and pointed to related entities. We did not dig into that warning soon enough. One liability market's underwriter did quote the liability, then found the active brokerage and withdrew the quote a few days later. Two more liability markets declined over the brokerage, one of them in a single line about the brokerage operation. A third declined only because it does not write in his state.
The owner confirmed in writing that he owned the brokerage, and we disclosed it to the markets we sent it to after that. He told us he planned to close it. When the file closed, the brokerage authority was still active on the federal record. Physical damage and cargo indications came back, but no liability price survived the brokerage. He had told us at the start that he already had a policy in force.
What this actually means for you: the brokerage was public from day one. If it had been on the first application with a short explanation, he would have known in days which markets were open, and the closing question could have been settled before the date. List every related number before you ask for a quote.
What to send us
- Your USDOT and MC numbers
- The brokerage's USDOT and MC numbers, and who owns it
- A few lines on what the brokerage does and whether your truck hauls its loads
- If you are closing it, what you have filed and the date
- The decline note or email you received
- Your current dec page and loss runs
- Your truck and driver list, and the date you need coverage
Start your request here, or call 317-427-5599. For the other rules that cause declines, see why big trucking insurers say no.
FAQ
Can I own a trucking company and a freight brokerage at the same time?
Yes. They are separate registrations, and many owners hold both. The question for insurance is whether a market will write the trucking company with the brokerage on the record. Some will not. Others will, once they understand how the two are kept apart.
Do I have to tell my truck insurer about my brokerage?
Applications often ask about related companies. Answer truthfully. Underwriters can see the link on the federal record, and an answer that leaves it out can cause problems with a claim or the policy later.
Will closing my broker authority fix the decline?
It can remove the reason, but only once the federal record shows the authority as inactive. Send the new record with your next submission, and ask the markets that declined to look again.
Why did one insurer quote me and another decline over the same brokerage?
Each insurer sets its own rules on related companies. One online rater may stop at eligibility, while a hand underwriter may read your explanation and price it. That is why the explanation matters.
Does the brokerage need its own insurance?
The brokerage has its own filing requirement: a surety bond or trust fund on file with FMCSA before it is registered. Many brokers also carry other broker coverages. That is separate from the liability on your truck.