Due to the necessity for commercial goods and products to be moved from city to city or state to state, there are great opportunities for those interested in starting up a new transportation business. However, the trucking industry is an extremely competitive field, and because the competition is so steep, it would be wise to thoroughly research the industry before opening a trucking business.
Determine the type of trucking business to operate
Trucking businesses operate by bidding on, and fulfilling, transportation accounts and contracts. Most trucking businesses usually operate in one of two ways:
- Sub-contracted drivers: In some instances the business is run is by using sub-contractors as drivers. The drivers are not actually employed by the company. This option cuts down on start-up costs, insurance costs, and required equipment. On the other hand, this option gives less control over the drivers and also cuts into profits.
- Privately owned drivers: Under the second option, the owner uses their own equipment, pays higher insurance prices, and hires a fleet of private drivers as employees. This option gives total control over the business and its employees, and promises the most return on profits. (On the downside, this option requires a great deal more start-up capital and operating costs).
In either case, Massachusetts trucking insurance is a vital part of any company that uses trucks as part of their daily operations to handle any claims resulting from commercial property, inland marine, ocean marine, cargo, crime, towing, roadside and emergency assistance, trailer interchange, leased operator coverage, bobtail insurance, and more.
As with any new business venture, the first thing is to understand the basics of starting a business, and then research the additional steps specific to operating this type of company. After determining what type of trucking business to start, seek out more information on financing the business, hiring employees, and complying with tax obligations.
Compliance with all trucking-specific business licenses, permits, and forms is crucial. In addition to the general federal and state requirements, there are tax, license, and permit regulations that apply specifically to the trucking industry. Depending on the type of trucking business being run, several important federal requirements must be met as well.
Starting a new business can be a fun and rewarding experience. But the bottom line is, to be successful in this type of venture requires the financial security that comes from providing the company with the proper amount of trucking insurance in the Massachusetts area.