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What are the differences between common, contract, and broker authority?

April 26, 2017authority broker common contract differences

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What are the differences between common, contract, and broker authority?

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Common authority is for carriers that provide for-hire transportation to the general public. Common carriers must file both liability insurance and cargo insurance. Contract authority is for carriers that provide for-hire transportation to specific individual shippers, based on contracts. Contract carriers are only required to file liability insurance. Broker authority is for a company who arranges for the transportation of cargo belonging to others for compensation utilizing for-hire carriers. Brokers are required to file a $10,000 surety bond.