Have you ever known someone to use a backup MC once their trucking business goes south? It can be difficult to repair damaged relationships with insurers or brokers. However, operating a backup MC is not a solution for many reasons. Let’s take a look at some of the inherent problems with this workaround.
Running a Backup MC is Illegal
The most straightforward reason why using a backup MC is a poor idea is that it is an illegal practice. Companies that take this option are using a deceptive workaround to try to get around their past issues. As you could imagine, this can put your business at risk of some major issues if uncovered. Fortunately, tools like trucking software can help you operate your company well in the first place.
Backup MCs Get Confusing Quickly
Have you ever told a little white lie and had to maintain it over time? It can quickly become quite complex, leading to a wide web of deception. This is typically the case with running a backup MC. Between maintaining multiple addresses and finding people to help with the process, it can cause many issues. There is also an increased cost with running a backup MC.
Same Practices Yield the Same Mistakes
Let’s face it - if your trucking business goes south, you are going to end up at the same fate with a backup MC unless you take actions to correct the problematic practices in the first place. It’s normal for businesses to make mistakes that can lead to high safety scores and problems with insurance and brokers. Modern carriers need to harness the benefits of trucking software in order to avoid these problems.
Risk Relationships with Family & Friends
Many people who operate a backup MC will register it in the name of a friend or family member in order to avoid suspicion. However, this can result in problems over time. If that person decides they want to start a company, they won’t be able. You can also create tension and stress should you start having problems with a backup MC operating under someone else’s name.
Starting From Square One
When you operate a trucking business, you know it takes time to build trust, relationships, and business. Having to switch to a backup MC means essentially starting over with a brand new company. While your trucks and drivers may be the same, you’ll have to build brand new relationships with brokers and insurers. This can keep you from growing your business like you would like.
Avoid Backup MCs By Leveraging Trucking Software
All-in-one trucking software used to be solely the domain of the major carriers. However, even small carriers are increasingly implementing this type of tool now. Trucking software can not only help you keep performing at a high level but can also enable you to reduce costs and save time by streamlining processes. ZTrucking is the leading trucking software when it comes to keeping a low safety score thanks to our industry leading AI that performs daily safety audits. Try it out for yourself with our free trial.