Last month, Mark received a call that changed everything: brokers told him his company no longer had the authority to haul loads. Despite diligently paying insurance premiums for years, FMCSA’s SAFER database listed his operating authority as revoked. How? Because his insurer never filed the required continuation filings.
How Insurance Can Cost You Your Authority
By FMCSA regulation, carriers must maintain proof of liability insurance via Form BMC-91 or BMC-91X filings. Importantly, it’s the insurance company’s responsibility to notify FMCSA of continued active coverage, not the carrier’s.
When insurers fail to file or delay submissions, FMCSA can automatically issue a Notice of Revocation of Authority. This mistake puts your business in limbo, even when you’re fully covered.
In Mark’s case, his insurer admitted the error, paid the $80 reinstatement fee, and his authority was restored in a week. But the damage was done. Public records now showed his operation as newly authorized, and many brokers refused to work with him due to a lack of continuous authority.
Don’t Assume You Have to Accept the Loss
Just because your authority was revoked through no fault of your own doesn’t mean you’re left without recourse. Across the country, laws exist to recover damages when professional negligence causes harm. In this scenario, the insurer’s failure to file properly triggered direct financial harm to Mark’s business, loss of customers, missed loads, and diminished trust. The insurer can be held responsible.
What You Should Do Immediately
Document Everything – Save notices, emails, broker refusals, and the evidence showing your insurer failed to file.
Reinstate Authority – Work with FMCSA to get your status corrected. Pay needed fees, and ensure the proper forms are filed.
Evaluate Damages – Calculate revenue lost during the revocation period, lost contracts, reputational harm, and other related losses.
Consult a Specialized Attorney – Your state’s rules vary on recovery and notice requirements; a trucking law firm can guide you.FMCSA Form Filing Failure – What Truckers Should Do When Authority Is Revoked
Know Your Rights. Protect Your Business.
If your operating authority was revoked because of a filing error by your insurer, you don’t have to bear the loss alone. The team at Eckert & Associates, P.A. specializes in trucking law and insurance disputes.
Call 1-800-DOWNTIME or visit DowntimeClaims.com today for a free consultation, we fight to recover what you rightfully deserve.
Kelsea Eckert enjoys helping clients resolve their insurance and downtime claims. She is active in the trucking community and is always willing to speak with groups about transportation topics.
Kelsea was raised in the Bloomington, Illinois area and has practiced law since 1988. She lives in Florida and Kentucky, representing clients across the United States.
Over the years, she has written numerous books, including: The Illinois Legal Filing Directory, Small Claims Court Without a Lawyer, How to Form Your Own Corporation, Getting Paid in Full, Lawsuits of the Rich and Famous, and Selling Internationally, Without a Product.
Kelsea regularly speaks at trade shows, podcasts, and radio shows on transportation issues. She writes articles for newsletters, magazines and the Eckert & Associates, PA blog. Some of her writings and interviews are available on Transport Topics, Landline Media, Expediters Online, Service Truck Magazine, and other transportation media networks.
Kelsea attended Illinois State University and University of Georgia during her undergraduate years. She graduated from Southern Illinois University School of Law. She is a member of the Illinois Bar and Florida Bar.
Kelsea is on the board of the Transportation Club of Jacksonville as the Driver Advocate Chair. She is involved in her community through volunteering, and she and her husband have two amazing children.