When Your Authority Gets Revoked by Mistake: What Carriers Need to Know About First-Party Claims

Last month, Mark got a phone call that shut his business down instantly.

As the owner of a small fleet, he was told by a broker that they couldn't use his company to haul loads because the FMCSA's SAFER database showed his authority to operate was revoked. "Impossible!" thought Mark. His company had been in business for five years without issue, and he always paid his insurance premiums on time.

But when he checked FMCSA's system, it was true; his operating authority showed as revoked.

What Went Wrong?

Under FMCSA regulations, every motor carrier must keep proof of liability insurance on file with the agency. Insurance companies, not the carriers themselves, are responsible for filing Form BMC-91 or BMC-91X electronically to show coverage is active.

If an insurer fails to update the filing in time, FMCSA automatically issues a Notice of Revocation of Authority. That's exactly what happened to Mark: his insurance company simply failed to submit the notice.

The Fallout

Mark's insurer admitted the error, paid FMCSA's $80 reinstatement fee, and his operating authority was restored in a week. But the damage had already been done.

In FMCSA's public records, his company now appeared as if it had just been authorized. Many brokers and shippers require six months of active authority before awarding loads. Mark's long-time clients turned him away, leaving his trucks idle and his revenue slashed.

Do Carriers Just Have to Accept This?

The answer is no.

Across the U.S., the law provides remedies when businesses suffer financial harm due to another party's negligence. In this case, the insurance company's filing failure directly caused Mark's business losses. That means they, not the carrier, can and should be held accountable.

What Should Carriers Do?

The best step for any motor carrier in this situation is to consult with a law firm experienced in trucking and insurance claims. Each state has different rules on notice requirements, damages, and recovery. But one principle remains the same:

Carriers should not bear the financial consequences of their insurer's mistake.

Protect Your Authority, Protect Your Business

Your operating authority is more than just paperwork it's your company's license to earn a living. If that gets disrupted because of someone else's negligence, you deserve compensation for the damage.

Protect Every Dollar After a Mistake

If your operating authority was wrongly revoked-or your business lost revenue because of someone else's error you don't have to carry the burden alone.

The team at Eckert & Associates, P.A. is here to fight for you. Call 1-800-DOWNTIME or visit downtimeclaims.com today for a free consultation. We understand the trucking industry and work to recover every dollar your business deserves.