Carrier Vetting Checklist for Freight Brokers — FMCSA, Insurance & Authority
Carrier vetting used to be a risk-management best practice. After the Supreme Court's 2023 ruling that removed federal preemption for freight brokers on carrier selection, it's now a legal necessity. If you book a carrier with lapsed authority or inadequate insurance and something goes wrong, you can be named in a negligence suit under state law. This checklist covers what to verify before every booking.
Why Carrier Vetting Matters More Now
Before 2023, freight brokers had significant protection under the Carmack Amendment and federal preemption — the argument that federal law governed broker liability and state negligence claims were preempted. The Supreme Court's ruling in Doe v. Uber Technologies effectively ended that protection for brokers operating under FMCSA rules.
The practical impact: if you book a carrier whose authority is inactive, whose insurance is expired, or who has a poor safety record, and that carrier is involved in an accident, you can face a state-level negligence claim for "negligent selection" of the carrier. Clicking past a warning banner is not a defense. Not generating the rate confirmation is.
Step 1 — FMCSA Authority Lookup
Every carrier operating in interstate commerce must have active FMCSA authority. You can verify this at safer.fmcsa.dot.gov using the carrier's MC number or DOT number.
| What to Check | What It Means | What to Do if It Fails |
|---|---|---|
| Operating authority status | "Active" = can legally haul | Do not book — carrier cannot legally operate |
| Authority type (common/contract) | Common carrier = general freight; Contract = specific shippers only | Confirm they can haul your shipper's freight type |
| Revocation history | Prior revocations indicate compliance issues | Investigate before booking; avoid carriers with recent revocations |
| Out-of-service orders | Active OOS = carrier is prohibited from operating | Do not book under any circumstances |
Both the MC number (Motor Carrier number) and DOT number (Department of Transportation number) identify a carrier, but they mean different things. The MC number authorizes interstate for-hire freight. The DOT number is assigned to any company operating vehicles above a certain weight, including private fleets. You want to verify the MC number specifically for for-hire authority.
Step 2 — Insurance Verification
Carrier insurance information is on file with FMCSA and visible in the SAFER system under "Insurance." However, the FMCSA record can lag by days or weeks. The safest practice is to also request a current certificate of insurance from the carrier directly.
FMCSA minimum insurance requirements
| Freight Type | Minimum Liability Coverage |
|---|---|
| General freight (non-hazmat) | $750,000 |
| Hazmat (Zone A or B toxics) | $5,000,000 |
| Hazmat (other) | $1,000,000 |
| Household goods | $750,000 |
| Passenger carrier (16+ seats) | $5,000,000 |
Cargo insurance minimums are $5,000 per vehicle under FMCSA rules, which is far below what most loads are worth. Most shippers and good brokers require $100,000 in cargo coverage. For high-value freight, verify the actual cargo policy limit and whether specific commodities are excluded.
Step 3 — Safety Rating
FMCSA assigns one of three safety ratings based on compliance reviews and inspection data.
| Rating | Meaning | Action |
|---|---|---|
| Satisfactory | Carrier meets FMCSA safety standards | Proceed with insurance and authority verification |
| Conditional | Carrier has safety deficiencies identified in a review | Use caution — review the specific violations before booking |
| Unsatisfactory | Carrier has serious safety deficiencies | Do not book — many shipper contracts prohibit booking unsatisfactory carriers |
| Not rated / Unrated | New carrier or not recently reviewed | More common than you think — not an automatic disqualifier, but verify everything else carefully |
A "Conditional" rating does not mean a carrier is unusable — it means a specific compliance issue was found. Look up the FMCSA inspection report to understand what it was. A single log-book violation is different from a pattern of brake defects or drug/alcohol violations.
Step 4 — SMS Safety Measurement System
The FMCSA's Safety Measurement System (SMS) scores carriers across seven behavioral areas using inspection and accident data from the last 24 months. Scores are available at ai.fmcsa.dot.gov/SMS.
- Unsafe Driving — speeding, distracted driving, seatbelt violations
- Hours-of-Service Compliance — log violations, duty status falsification
- Driver Fitness — unlicensed drivers, missing medical certifications
- Controlled Substances/Alcohol — positive drug/alcohol tests
- Vehicle Maintenance — brake defects, tire failures, lights
- Hazardous Materials Compliance — (HM carriers only)
- Crash Indicator — reportable crash rate vs peer group
A carrier with a BASIC score above the alert threshold (70–80% depending on category) is one FMCSA has identified as higher-risk. These carriers are worth additional scrutiny before booking.
Hard Stops vs Soft Flags
Some issues are absolute — do not book, full stop. Others are yellow flags worth investigating before you decide.
| Issue | Hard Stop | Investigate Further |
|---|---|---|
| Authority status: inactive or revoked | ✓ | |
| Active out-of-service order | ✓ | |
| No liability insurance on file | ✓ | |
| Unsatisfactory safety rating | ✓ | |
| Conditional safety rating | ✓ Check the specific violations | |
| High SMS BASIC scores | ✓ Review which categories | |
| Insurance expiring within 7 days | ✓ Get current certificate | |
| No cargo insurance on file | ✓ Request certificate directly |
Ongoing Monitoring
Adding a carrier to your approved list once is not enough. Authority and insurance status can change any time — carriers lose authority for non-payment, insurance lapses between renewal cycles, and safety ratings change after compliance reviews.
- Re-verify authority and insurance every 90 days for carriers you use regularly
- Use FMCSA's free carrier monitoring service to receive alerts when a carrier's status changes
- Make re-verification part of your onboarding packet refresh when carriers haven't run for you in 6+ months
- Never rely on a carrier's self-reported status — always verify in SAFER directly
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