FMCSA Insurance Requirements for Motor Carriers

Minimum Liability Limits by Cargo Type

FMCSA financial responsibility requirements are set by 49 CFR Part 387 and vary based on the type of commodity transported and the weight of the vehicle. For-hire carriers transporting non-hazardous general freight in vehicles over 10,001 pounds must maintain a minimum of $750,000 in public liability coverage.

Carriers transporting hazardous materials face significantly higher minimums. If you haul oil or hazardous waste, the minimum increases to $1,000,000. For carriers transporting certain highly dangerous hazardous materials such as Division 1.1, 1.2, or 1.3 explosives, Division 2.3 poison gas, or highway route-controlled quantities of radioactive materials, the required minimum jumps to $5,000,000.

Private carriers hauling their own non-hazardous goods are generally not subject to Part 387 federal minimums; private carriers transporting hazardous materials are, at the applicable $1,000,000 or $5,000,000 levels. For-hire carriers operating passenger vehicles have separate requirements: $5,000,000 for vehicles designed to seat 16 or more passengers, and $1,500,000 for vehicles seating 15 or fewer passengers.

It is critical to understand that these are federal minimums. Many shippers, brokers, and freight platforms contractually require higher limits, and industry standard practice for general freight is $1,000,000. Operating at the bare minimum may satisfy the FMCSA but can limit your access to profitable loads.

MCS-90 Endorsement

The MCS-90 endorsement is a mandatory attachment to the liability policy of every for-hire interstate motor carrier. It functions as a guarantee to the public that the insurer will pay claims arising from the carrier's negligence, even if the underlying policy would otherwise exclude or deny the claim.

The MCS-90 is not additional coverage in the traditional sense. It acts as a safety net that ensures injured parties are compensated regardless of policy technicalities. If the insurer pays a claim under the MCS-90 that would not have been covered under the base policy, the insurer has the right to seek reimbursement from the motor carrier.

The MCS-90 attaches to your policy and stays with your records; your insurer separately files the BMC-91 or BMC-91X electronically with the FMCSA as proof of financial responsibility. If your policy is cancelled or non-renewed, the insurer must provide 30 days advance notice to the FMCSA through a cancellation filing. During those 30 days, your authority remains active, but you must secure replacement coverage before the cancellation takes effect or your authority will be revoked.

BMC-91 and BMC-91X Filings

The BMC-91 is the form used by your insurance company to file proof of your liability coverage with the FMCSA. It certifies that you carry at least the minimum required amount of public liability insurance. The BMC-91X serves the same function but is used when coverage is provided through a surplus lines insurer rather than an admitted carrier.

These filings are electronic and processed through the FMCSA's Licensing and Insurance system. Once your insurer submits the BMC-91 or BMC-91X, your authority status in the FMCSA database updates to reflect active, compliant coverage. Brokers and shippers routinely check this status before tendering loads, so timely filing is essential.

Separately, if you are a freight broker or freight forwarder rather than a motor carrier, you are required to maintain a BMC-84 surety bond or BMC-85 trust fund in the amount of $75,000. This is distinct from the motor carrier liability filing and ensures that brokers can meet their financial obligations to carriers and shippers.

Cargo Insurance Requirements

While the FMCSA does not set a specific minimum for motor truck cargo insurance for property carriers, cargo coverage is effectively required by the market. Nearly every broker, shipper, and load board requires proof of cargo insurance before tendering freight, and the industry standard minimum is $100,000 per occurrence.

For-hire household goods carriers are the exception: they are required by FMCSA regulation to offer cargo liability coverage to shippers and must maintain sufficient insurance to meet those obligations. Beyond regulatory requirements, your motor carrier operating agreement and any broker-carrier contracts will specify cargo insurance minimums that you must maintain as a condition of doing business.

Maintaining Compliance

• ●Ensure your insurer files the BMC-91 or BMC-91X immediately upon binding your policy to avoid any gap in your FMCSA filings
• ●Monitor your authority status on the FMCSA SAFER System website to confirm your insurance filings are active and current
• ●Never allow your policy to lapse, as the FMCSA will begin revocation proceedings and your authority status will change to Not Authorized
• ●Provide 30-day advance notice to your insurer before making changes that could affect coverage, such as adding new vehicle types or commodities
• ●Review your coverage limits annually and whenever you add new freight types to ensure you meet the correct minimum for your commodity mix
• ●Keep copies of your insurance certificate, MCS-90 endorsement, and BMC-91 filing confirmation with your operating documents at all times