Trucking Insurance Requirements: Federal Minimums and FMCSA Filings
If you haul for hire, federal rules set your minimum liability limits and require your proof of insurance on file with FMCSA.
This article is general information about how insurance usually works. Your policy’s own wording decides what it covers. Ask us about yours.
Short Answer
If you are a for hire carrier hauling non hazardous property in interstate commerce, in vehicles of 10,001 pounds or more, you need at least $750,000 of public liability coverage, and certain bulk hazardous materials require $5,000,000. For a new authority, the coverage and the filing must be in place before the first load. Your contracts, brokers and shippers may require more than the federal minimums.
The Federal Minimums
- Non hazardous property.
- The minimum is $750,000 for for hire carriers in interstate commerce in vehicles of 10,001 pounds or more.
- Oil and other listed hazardous materials.
- The minimum is $1,000,000 when the material is not in the $5,000,000 class.
- Certain bulk hazardous materials.
- The minimum is $5,000,000.
These are federal minimums, and your contracts, brokers and shippers may require more.
When Coverage Must Be in Effect
A motor carrier may not operate until the federal minimum financial responsibility is in effect. For a new authority, the coverage and the filing must be in place before the first load.
The FMCSA Filing
For hire interstate carriers must have proof of insurance filed with and accepted by FMCSA before authority is issued or stays in force.
Proof and the MCS-90 Endorsement
Proof of financial responsibility is kept at the carrier’s principal place of business. The MCS-90 endorsement is one accepted form.
If a Carrier Will Not Write Your Account
One carrier declining is one answer from one carrier. Contact us. Our practice includes commercial risks that other agencies find hard to place. We reach the surplus lines market through licensed surplus lines brokers. No agency can promise a placement.
If a standard insurer says no, your policy may be placed this way, and it works a little differently. Some hard to place risks are insured by surplus lines carriers. These carriers are not licensed by the state as admitted insurers. Their policies can cost more, cover less or differently, and follow different cancellation and nonrenewal notice rules. They are generally not covered by the state insurance guaranty fund if the carrier fails. Surplus lines coverage is placed through a licensed surplus lines broker. We explain the differences to you in writing before you decide.
Frequently Asked Questions
How much liability insurance does a trucking company need?
The minimum is $750,000 for for hire carriers hauling non hazardous property in interstate commerce in vehicles of 10,001 pounds or more.
How much for hazardous materials?
Certain bulk hazardous materials require $5,000,000. Oil and other listed hazardous materials not in that class require $1,000,000.
When must a new trucking authority file insurance?
Before authority is issued, because for hire interstate carriers must have proof filed with and accepted by FMCSA.
What is an MCS-90?
It is an endorsement that is one accepted form of proof of financial responsibility.
Can I operate before my coverage starts?
No. A motor carrier may not operate until the federal minimum financial responsibility is in effect.