Starting a trucking company means dealing with two sets of insurance requirements: what the federal government requires before your authority is active, and what brokers, shippers and lenders require before they will work with you. They are not the same list.
What federal rules require
For-hire carriers hauling freight across state lines must show proof of liability insurance to the Federal Motor Carrier Safety Administration (FMCSA). The minimums depend on what you haul:
- $750,000 for general (non-hazardous) freight in trucks with a gross vehicle weight rating of 10,001 pounds or more
- $1,000,000 for oil and certain hazardous materials
- $5,000,000 for the most dangerous hazardous materials
Your insurance company files the proof for you (the BMC-91 or BMC-91X filing), and the policy carries an MCS-90 endorsement. Your authority is not active until that filing is on record. You also need a process agent filing (BOC-3), which is not insurance but is required alongside it.
What brokers and shippers require
The federal minimum is rarely enough to get loads. Most brokers and shippers ask for:
- $1,000,000 in auto liability, even when the federal minimum is $750,000
- Motor truck cargo, commonly $100,000. Federal rules only require cargo insurance for household goods movers, but almost every freight contract requires it
- General liability in many contracts
What your lender requires
If your truck or trailer is financed or leased, the lender will require physical damage coverage and will want to be listed on the policy as loss payee.
What about your drivers?
Workers’ compensation rules depend on your state and on whether your drivers are employees or independent contractors. Ask about your specific situation before you hire.
A note on registration
FMCSA is replacing its registration system with a new online system called Motus. The insurance requirements above are not changed by it, but the steps to apply for authority may differ from older guides you find online. Check FMCSA’s website for the current process.
This article is general information, not insurance or legal advice. Coverage depends on the policy that is issued, and requirements can change. Confirm current federal rules at fmcsa.dot.gov.