Why Your Carrier Setup May Not Be Approved
You've just submitted all your broker setup application documents. You've completed the long questionnaire, despite multiple interruptions, and sent everything off. Days have passed, but instead of approval, you’re greeted with silence. You then reach out to the broker, only to find that your setup has not been approved. What went wrong?
Understanding the common issues with broker setups can give you a head-start in solving them. This guide will walk you through the most frequent problems and their resolutions.
Common Issues and Resolutions
Rejected W9
The Problem
Your carrier's W9 form may have been rejected due to TIN matching issues. TIN matching involves verifying that the Taxpayer Identification Number (TIN) provided matches the IRS records for your carrier's business TIN and name. This process ensures that the information on your W9 form is accurate and up-to-date.
Mismatched information can occur if there are discrepancies in the spelling or formatting of your business name or if the TIN provided is incorrect.
Common Resolution
Please review your details and resubmit the form to avoid delays in processing. The provided information should match what was previously provided to the IRS either on tax returns or during the EIN application. Check prior year tax filings. To avoid future issues, use software that allows you to perform your own TIN matching before submitting documents.
Can't Login to Complete Setup
The Problem
Most setup software, like DAT or MyCarrierPackets, has a universal login for their portal. However, they often complicate password resets to prevent fraud. For example, they may request that the phone number on file or email provided matches what has been provided previous to the FMCSA or DOT.
Common Resolutions
- Ask for a PDF packet: If you need to move a load immediately, request a PDF version of the setup forms. Usually brokers will have this on file.
- Call the broker: Know which number to call, and persist until you reach the appropriate party who can assist you.
- Know your carrier's info: Be ready with all the information you submitted to FMCSA and DOT. Many brokers and risk management software verify data submitted with the information reported to those organizations.
Application Stuck in Limbo
The Problem
Your application may be missing a compliance requirement. Commonly seen issues with compliance are insufficient insurance coverage or too young of authority age. Many brokers require carriers to be actively and in good standing for a minimum number of days such as JB Hunt which requires authorities to be at least 180 days old (at the time of this writing).
Common Resolution
Have an advocate on the broker’s side who can push your application forward typically a broker agent. In this manner, the carrier can at least get the information needed to resolve the issue as opposed to not having guidance on how to move forward. If a compliance issue is holding your carrier back, resolve it and then reapply. Your carrier may not be able to move loads with the broker in the interim.
Missing COI with Additional Insured
The Problem
The broker hasn't received your Certificate of Insurance (COI) with an additional insured clause. This is a common requirement to ensure the broker is covered in the case of an accident while the carrier hauls the load. This could happen if the insurer sent it to the wrong email, or if the agent didn't follow up with the broker.
Common Resolution
Get everyone—your insurer, the broker, and any other necessary parties—on the same email thread. If that doesn't work, arrange a conference call between the broker and the insurance provider.
Incorrect COI Form
The Problem
Brokers typically require documents on the Accord form, a standardized insurance form used widely in the industry. However, some insurers, like Progressive, prefer to use their own customized forms for documentation. In such cases, if you need the standardized Accord form, a specific request must be made to the insurer to provide it. This process ensures that all required information is captured accurately, regardless of the form used.
Common Resolution
Specifically request the Accord form from your insurance provider, as this document is crucial for processing various claims and policy updates. Ensure you keep a blank copy handy to show exactly what is needed, which can help avoid any confusion or delays. Having this form readily available will streamline your interactions and ensure all necessary information is accurately communicated.
Missing COA
The Problem
If you’re a new carrier, you may not have received your Certificate of Authority (COA) from the Federal Motor Carrier Safety Administration (FMCSA) yet. This crucial document, which grants you the legal authority to operate as a motor carrier, can take time to process and be issued.
Common Resolution
Explain the delay to the broker, detailing the specific reasons behind it. Additionally, provide a screenshot from the FMCSA website as a temporary solution to offer transparency and reassurance. Make sure to emphasize the steps being taken to resolve the issue promptly and keep the broker informed of any further updates.
Get Out of Approval Limbo
The longer your application is stuck in the approval queue, the less likely you are to get approved. Brokers receive numerous applications daily, which can create a backlog. Here's how to get out of limbo:
- Have a Hot Load: If you have a hot load that needs immediate attention, it can expedite the approval process. Brokers are more likely to push your setup through if there’s urgency involved.
- Have an Advocate: Having someone within the brokerage who can vouch for you can make a world of difference. This could be someone you’ve worked with before or someone who understands the importance of getting your setup approved quickly.
- Know Who to Call: Understand the hierarchy within the broker’s office and know exactly who to call for setup issues. Persistence is key in getting your application moved up the queue.
Conclusion: Self-Advocate
Navigating the broker setup process can be challenging, but understanding common issues and how to resolve them can save you time and frustration. Always be prepared to advocate for yourself. With persistence and the right strategies, you'll be moving loads in no time.
By following these guidelines, you'll increase your chances of getting your broker setup approved quickly and efficiently. Don’t hesitate to be proactive—your business depends on it.
Broker Set-up Series
That’s a wrap on our broker set-up series! Thanks for reading with TrueNorth. Found this useful, sign up for our Dispatch and Concierge service, where our team will help you with your set-ups.
We’ve done over a thousand set-ups for both drivers latched onto a carrier and to owner-operators with their own MC. What we’ve found is that most truckers don’t understand the broker set-up process. In our “How to get set-up with brokers” series we’ll break down what a set-up is, how to navigate compliance, and common issues across four blog posts.
- Part 1 - What’s a set-up?
- Part 2 - Compliance Requirements
- Part 3 - Getting Paid
- Part 4 - Troubleshooting Common Issues
Want a more high level overview? Check out our original article: From Carrier Packets to Broker Setups: What to Know