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

• http://www.ehow.com/facts_6766662_definition-3pl-logistics.html
• http://www.ehow.com/facts_6961682_3pl-logistics_.html
• http://en.wikipedia.org/wiki/Third-party_logistics
• http://www.stcomplete.com/inside-st-complete/know-the-difference-between-asset-based-and-non-asset-based-3pl-providers/
• http://www.avascent.com/files/publications/0512-tar-07-just-in-time-at-dod.pdf
• classes.bus.oregonstate.edu/spring-06/ba457/…/3pl.ppt
• http://www.academia.edu/514908/Evaluating_Third_Party_Logistics_Relationships_When_provider_size_matters

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.