Losing your trucking authority can be financially devastating. In fact, whether due to insurance lapses, compliance issues, or paperwork errors, a revocation by FMCSA shuts down your ability to haul. As a result, your revenue disappears overnight, and your business grinds to a halt.
What Is Trucking Authority — and What Does Revoked Mean?
What is a trucking authority?
Operating authority (issued by FMCSA) allows carriers to move freight under their own USDOT/MC number, booking loads directly rather than under another company’s authority.
What does “revoked” mean?
If your status is “revoked,” you’re no longer legally approved to operate under your MC number. It differs from “inactive”; revoked means your operating permission has been removed until corrective action is taken.
What does “reinstated” mean?
In this context, reinstated means FMCSA has updated your status from revoked (or suspended) back to active, approving you again to haul freight.
Why Trucking Authority Gets Revoked
A number of missteps or failures can trigger revocation. Common causes include:
- Insurance Cancellation or Lapse — FMCSA requires proof of active liability insurance at all times.
- Insufficient Coverage — Not meeting the minimum liability levels (varies by weight and freight type).
- Missing or Invalid BOC-3 Filing — Carriers must always have a process agent on file.
- Failure to Update MCS-150 — Carriers must update their registration periodically; failure can lead to revocation.
- Unpaid Fees (UCR, etc.) — Overdue registration or carrier fees can result in authority revocation. As a result, even a small oversight can take you off the road.
- New Entrant Audit Failures — New carriers must pass a safety audit in their first year; failure may lead to the authority being revoked.
- Voluntary Revocation or Administrative Closure — Sometimes carriers ask for closure or are administratively closed due to inactivity.
Step 1: Determine Why You Were Revoked
You can’t fix the problem if you don’t know it. Here’s how to figure out the cause:
- Use FMCSA’s Licensing & Insurance (L&I) portal with your MC or USDOT to view your status (revoked, pending, active).
- Review the official revocation notice from FMCSA; it should state the reason and date.
- Check for any correction deadlines or windows (some revocations have reinstatement windows).
Step 2: Take Corrective Action
The necessary steps depend on what caused the revocation. Some common fixes:
- Insurance issues: Contact your agent/company immediately. If the insurance provider failed to submit required filings (BMC-91/BMC-91X), request that they do so and document their admission of error.
- Missing BOC-3 or process agent: File the correct BOC-3 form quickly.
- MCS-150 updates: Submit a new MCS-150 with current information.
- Unpaid fees: Pay outstanding UCR or regulatory fees.
- Audit failures: Correct all violations, gather proof of fixed issues, and submit documentation to FMCSA.
Step 3: File for Reinstatement
Once corrections are made:
- Submit Form MCSA-5889 (Reinstatement Request) to FMCSA.
- Pay the reinstatement fee (currently $80).
- Wait on processing — if all errors are addressed, reinstatement can take days, but sometimes longer.
- Monitor status — use FMCSA’s portal to confirm your authority is active again.
Step 4: Pursue Damages for Revocation Losses
If the revocation was caused by an insurer or agent’s error (e.g., failing to file insurance verification), you may have a claim:
- Lost income during revocation — brokers refusing loads, lost contracts, etc.
- Reinstatement costs — the $80 fee and associated administrative expenses.
- Business losses — reputational harm, indirect losses, reduced access to brokers who require six months of continuous authority.
Document everything: communications, denied load offers, broker rejections, and downtime losses.
Real-World Example
Marty, a small fleet owner, was revoked despite paying premiums on time. His insurer had failed to file proof of coverage with FMCSA. Within days of proving his payment and correcting the filing, his authority was reinstated. However, brokers still viewed his MC as “new”, requiring him to accept lower-paying loads until reestablishment.
Because the insurer’s mistake caused him revenue loss, he pursued damages for that lost income during the revocation period.
Conclusion
Operating authority is essential for your trucking business. A revocation, whether due to paperwork, insurance, or compliance missteps, can cause lasting damage. But by methodically identifying the cause, making corrections, filing for reinstatement, and gathering documentation, you can restore your authority. And when the revocation resulted from another’s error, you may have grounds to claim compensation.
Need to Restore Your Authority or Recover Losses?
If your trucking authority has been revoked, you don’t have to go it alone. Eckert & Associates, P.A. specializes in reinstatement, claims for lost income, and recovering damage from insurer errors.
Call 1-800-DOWNTIME or visit DowntimeClaims.com for a free consultation today.