Tag Archives: dispatching

Dispatcher Info

Dispatching and the Insurance Issue

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Recently I got a comment that, what we purpose seems TOO easy when starting a dispatch business.  One of the comments was about being insured.  I’ve taken a couple of weeks to research this subject.  When you start your business if you sign on as a truck agent for the truck company that signs your contract, it would be a good idea to have them add your company as additionally insured.

As I understand it, your liability as a dispatcher is low risk.  The question?  Could you get sued if something goes wrong with the load you have been cleared to book?  Maybe.  So, far the best solution is to have your company name on the certificate of insurance as additionally insured.  Why?  Because if the company gets sued for a load they have agreed to have you book, the companies insurance company will also supply a lawyer for your company to fight the suit.

I have a request into my insurance company as to the best way to combat this issue, and to date, the best advice is to be added as additionally insured with the truck companies you have contracted with.  If I get any more information about this issue I’ll let our readers know.

If you sign on with a truck company as it’s truck agent, or admin office with dispatch capability, and you are an employee of the company, than you should not have to worry about the insurance issue, though you may want to get separate insurance when you register your business.  ( It was not recommended by my insurance agent.)  This is the method we used to begin dispatching right away.  The initial set up is very low.  The cost is derived from the set up of your office, and you only need to be concerned with phone calls, faxes, emails, and scanning documents.  If you have that capability you can start dispatching right away.

For the people that try to tell you that starting  dispatching is difficult, here is what the Wikipedia says about it:

en.wikipedia.org/wiki/Dispatcher

What is a dispatcher?

Dispatchers are communications personnel responsible for receiving and transmitting pure and reliable messages, tracking vehicles and equipment, and recording other important information. … trucking companies, … use dispatchers to relay information and coordinate their operations. Essentially, the dispatcher is the “conductor” of the force, and is responsible for the direction of all units within it. [2]

Simply Put – DISPATCHERS DISPATCH

I started a dispatch service not a logistics service which is completely different.  (3PL-Third Party Logistics Company.)  For Info about the difference between a company dispatch service and a 3PL service I have included some references you may want to check out:

Websites about 3PL’s

Though these seem closely related, it is not what we do.  I hope this information is helpful on how to build your own dispatch service.

Dispatcher Info

Owner Operator and Company Drivers

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Working with Owner Operators and Company Drivers for the beginning dispatcher.  If you know a truck driver who is working for a company (other than himself) he is referred to as a company driver.  If the company driver has his own truck, and trailer he may want to venture away from the company he is working for and begin working for himself.  If he is working for himself, he is referred to as an Owner Operator.  If he has his own authority and insurance he is able to run and book  freight loads independent of the company as long as he is not under contract with the company.

Question:
My husband has a truck and I want to dispatch him. How do I begin?

Answer:
This is a popular question. For the dispatcher, if you already have a truck to dispatch, you are half way to having a successful dispatch business.
Here are a couple of questions for you.

  • Is he a company driver
  • Is he under contract with the company he is working for

Most company drivers are under contract to the company that he is working for.  He will need to review his contract to see if he can carry freight loads independent of the company. Most companies will want the driver to be exclusive to them. They do not allow “trip” drivers. A trip driver is not under exclusive contract, and can get his own freight loads from other shippers.   If this is the case, the truck driver will need to go to his local DMV, and register his truck “company” as an independent Owner/Operator, and get what is called a MC (motor carrier) number. The next step is to get his own authority to transport freight either interstate, or intrastate. The next item that he will need is insurance for his truck company (business). The truck driver can get most of this information between the DMV and the Federal Motor Carrier Administration (http://www.fmcsa.dot.gov/registration-licensing/registration-licensing.htm ).

It is the responsibility of the Driver/Owner Operator (also known as the truck company) to take care of the these steps.  Your responsibilities as the dispatcher should start after he/she has taken care of the FMCSA, and he is legal to move freight as an independent owner operator.

  • The drivers starting point…. Read your company contract.
  • Talk to the DMV or apply online for your MC, etc. (FMCSA)
  • Contact your insurance Agent
  • Activate your authority
  • Start looking for your own freight or…hire a qualified dispatch service (they take care of all the paperwork that you will need to book freight loads as an independent owner operator.   A good dispatch service will help you grow your business in such away that you are both collecting good pay for the work that you both do.)
  • You may have to quit your JOB before you can actually start driving for yourself.

There you have it.  I hope this information was helpful for the owner operator, the company driver and the dispatcher.  Though, if you want to take on the extra duties of filing the paperwork for the driver, you can.  Know this, it would be easier for the driver to take care of this as he already had the experience of registering his truck with the DMV.)  If he already has an MC# (Motor Carrier) or a USDOT# (his authority to transport freight intrastate or interstate) he is more than halfway there.  Your duties as a dispatcher is to keep his truck loaded.