Trucking insurance explained
Some coverage is the law, some is what brokers demand and some protects your own truck. Here's what each policy does.
Key takeaways
- The federal minimum for most general freight is $750,000 in liability. Oil and most hazmat need $1,000,000, and certain bulk hazmat needs $5,000,000.
- Your insurance company files proof with FMCSA on Form BMC-91 or BMC-91X. Your authority can't go active without it.
- FMCSA requires a cargo insurance filing (BMC-34) only from household goods carriers.
- Brokers usually want $1,000,000 auto liability and $100,000 cargo.
The federal minimums
FMCSA sets minimum public liability coverage: it pays for injuries and damage you cause to other people. It doesn't cover your truck or the freight. The limits in 49 CFR 387.9 for trucks with a GVWR of 10,001 lb or more:
| What you haul | Minimum |
|---|---|
| General freight (non-hazardous), for-hire, interstate | $750,000 |
| Oil, and hazardous materials or waste not in the $5,000,000 group | $1,000,000 |
| Certain bulk hazmat: hazardous substances in cargo tanks, portable tanks or hopper-type vehicles, bulk explosives (Division 1.1, 1.2 or 1.3), bulk Division 2.3 Hazard Zone A, and highway route controlled quantities of radioactive material | $5,000,000 |
The hazmat limits also apply to private carriers, not just for-hire. These are minimums. Most brokers ask for more.
Filings: BMC-91, BMC-91X and MCS-90
- BMC-91 or BMC-91X: your insurance company files this proof of bodily injury and property damage coverage with FMCSA electronically. A BMC-91 shows the full limit from one insurer. A BMC-91X can show full coverage or one layer when more than one insurer stacks coverage to reach the limit. You don't file it yourself.
- MCS-90: an endorsement on your liability policy. Keep a copy at your principal place of business as proof of financial responsibility. A surety bond on Form MCS-82 is the alternative.
- BMC-34: proof of cargo insurance, required only for household goods (moving) carriers.
- BMC-84 and BMC-85 are broker bonds and trusts, not carrier insurance.
Your authority goes active only after the filing is on record, so check your FMCSA record with our carrier lookup. A policy with the MCS-90 stays in force until it's canceled with 35 days' written notice between the insurer and the carrier.
The main types of coverage
| Coverage | What it pays for | Who requires it |
|---|---|---|
| Primary auto liability | Injuries and damage to others when your truck causes a crash. "Primary" means it pays first. | FMCSA (minimums above) and brokers |
| Cargo | Loss of or damage to the freight you haul | Brokers and shippers; FMCSA only for household goods |
| Physical damage | Repair or replacement of your own truck and trailer | Your lender or lessor if the equipment is financed or leased |
| Non-trucking liability (NTL) or bobtail | Liability when a leased-on owner-operator drives outside the carrier's dispatch. Bobtail usually means driving without a trailer. Policies define both differently, so read the wording. | Not FMCSA; your lease says who provides it |
| Occupational accident | Medical bills and lost income if you're hurt on the job, for owner-operators without workers' comp | Not FMCSA; check your lease and your state's rules |
Other policies you may need: trailer interchange or non-owned trailer coverage for power only, reefer breakdown for temperature-controlled freight, and general liability when a shipper or broker asks for it.
What brokers usually ask for
- $1,000,000 auto liability, even though the federal minimum for general freight is $750,000.
- $100,000 cargo. Check the exclusions: unattended vehicle, theft, reefer breakdown and certain commodities.
- A certificate of insurance that names the broker as certificate holder. Ask your agent how fast they can send one.
- Every truck, trailer and driver you run listed on the policy.
Carriers with only the federal minimum get fewer loads. Our insurance checklist lists each item.
Own authority or leased on
With your own authority, you buy the primary liability and cargo coverage and your insurer files the BMC-91 or 91X. See how to start a trucking company.
If you're leased on to a carrier, the carrier's liability covers you while you're under its dispatch. Federal leasing rules say the lease must state who provides other coverage, such as bobtail insurance, and the amount of any insurance the carrier charges back to you. Read that part of the lease before you sign.
Before you buy
- Get quotes before you apply for authority. Insurance is usually the biggest startup cost.
- Work with a licensed agent who writes commercial trucking every day.
- Match the limits to what your brokers and freight need, not just the federal minimum.
- Read the exclusions and the definitions, especially for cargo, NTL and bobtail.
- Pay on time. If your policy is canceled, the filing goes with it, and your authority needs an active filing to stay active.
- 49 CFR 387.9: Minimum levels of financial responsibility
- 49 CFR 387.7: Financial responsibility required
- FMCSA: Insurance forms
- FMCSA: Insurance filing requirements
- 49 CFR 376.12: Lease requirements
This page is general information, not legal or tax advice. Rules change; confirm with FMCSA, the IRS or your state before you file.
Questions carriers ask
What is the minimum insurance for a trucking company?
For general freight in trucks of 10,001 lb or more, FMCSA's minimum is $750,000 in liability. Oil and most hazmat need $1,000,000, and certain bulk hazmat needs $5,000,000.
Does FMCSA require cargo insurance?
FMCSA requires a cargo filing (BMC-34) only from household goods carriers. Brokers usually require $100,000 cargo anyway.
What's the difference between BMC-91 and BMC-91X?
Both are proof of liability coverage your insurer files with FMCSA. A BMC-91 shows the full limit from one insurer; a BMC-91X can show full coverage or one layer when several insurers stack coverage.
Does Fleetorica sell insurance?
No. Fleetorica is a dispatch service, not an insurance agency. Get quotes from a licensed agent who writes commercial trucking.