Compliance & Risk Management

Safety First. Compliance Always.

FreightAI maintains rigorous compliance standards with triple-layer carrier verification, comprehensive insurance requirements, and proactive risk management.

Triple-Layer Carrier Verification

Every carrier on FreightAI is verified through three independent databases before they can access a single load.

FMCSA SAFER

Federal Motor Carrier Safety Administration

  • Active operating authority (MC/DOT)
  • Safety rating verification
  • Insurance filing status (BMC-91/BMC-91X)
  • Operating status (authorized vs. revoked)
  • Crash history and inspection results

Highway

Carrier Identity Verification

  • Real-time identity monitoring
  • Carrier impersonation detection
  • Authority change alerts
  • Contact information verification
  • Chameleon carrier detection

Carrier411

Performance & Complaint Database

  • Complaint history review
  • Double-brokering flags
  • Payment dispute history
  • Cargo claim records
  • Industry reputation score

How We Manage Risk

FreightAI proactively identifies, monitors, and mitigates risks across every shipment. Here's how we protect shippers and carriers.

Carrier Authority Lapse

High

Real-time FMCSA monitoring automatically suspends carrier accounts the moment their operating authority changes or lapses.

Insurance Expiration

High

Automated alerts at 30, 15, and 7 days before expiration. Accounts are suspended at expiry until renewed certificates are uploaded.

Double-Brokering

Critical

Triple-layer carrier verification, GPS tracking validation, and real-time carrier identity monitoring via Highway prevent double-brokering.

Cargo Damage or Loss

High

All carriers must carry minimum $100K cargo insurance. FreightAI maintains contingent cargo coverage and a documented claims process.

Payment Fraud

High

Stripe's built-in fraud detection, email verification, and identity verification on Connect accounts protect every transaction.

Late Delivery

Medium

Real-time GPS tracking, automated check-call system, and proactive shipper notifications keep deliveries on schedule.

Safety Violations

Critical

Continuous FMCSA safety rating monitoring and HOS compliance tracking. Carriers with violations are automatically removed from the platform.

Data Security

Critical

TLS encryption in transit, bcrypt password hashing, JWT session tokens, rate limiting, and security headers protect all platform data.

Insurance Requirements

All carriers must maintain the following minimum insurance coverage to operate on the FreightAI platform.

General Liability

Required
$1,000,000

Per occurrence. Covers bodily injury and property damage claims arising from business operations.

Auto Liability

Required
$1,000,000

Per occurrence, or as required by FMCSA for your operating authority class. Covers vehicle-related incidents.

Cargo Insurance

Required
$100,000

Minimum coverage. Higher limits may be required for high-value freight. Covers loss or damage to transported goods.

Workers' Compensation

Required
State Required

As required by applicable state law. Covers employee injuries and occupational illnesses.

FreightAI Platform Coverage

Errors & Omissions (E&O)

Professional liability coverage for broker operations, protecting against claims of negligence in carrier selection or shipment management.

Contingent Cargo Insurance

Secondary cargo coverage that activates if the carrier's primary cargo insurance is insufficient or denied for a valid claim.

Surety Bond (BMC-84)

$75,000 surety bond as required by FMCSA for all licensed freight brokers, protecting carriers against non-payment.

Continuous Compliance Monitoring

FreightAI doesn't just verify carriers at onboarding — we monitor compliance continuously.

Real-Time Authority Monitoring

FMCSA authority status is checked in real-time. Any change triggers immediate review and potential account suspension.

Insurance Expiration Alerts

Automated alerts at 30, 15, and 7 days before expiration. Accounts are suspended at expiry until renewed certificates are uploaded.

Anti-Fraud Detection

AI-powered fraud detection monitors for double-brokering, carrier impersonation, and suspicious activity patterns.

Dispute Resolution

Built-in dispute resolution system with documented processes, evidence collection, and fair adjudication by platform administrators.

Regulatory Framework

FreightAI operates in compliance with all applicable federal and state regulations.

FMCSA Broker Authority

FreightAI holds active FMCSA broker authority with a $75,000 surety bond (BMC-84) as required by 49 CFR Part 371.

Carmack Amendment Compliance

Cargo liability claims are handled in accordance with the Carmack Amendment (49 U.S.C. § 14706), which governs carrier liability for loss, damage, or delay.

Hours of Service (HOS)

All drivers operating through the platform must comply with FMCSA Hours of Service regulations (49 CFR Part 395).

Record Retention

Transaction records are retained for 7 years per IRS requirements. Shipment documents are retained for 3 years per FMCSA record-keeping requirements (49 CFR Part 371.3).

Data Protection

Platform data handling complies with applicable privacy laws including CCPA for California residents. See our Privacy Policy for details.

Anti-Fraud Regulations

FreightAI actively monitors for and reports suspected fraud, including double-brokering, carrier impersonation, and cargo theft, in cooperation with law enforcement when required.

Questions About Compliance?

Our team is available to answer questions about our compliance processes, insurance requirements, or carrier verification procedures.