Insurance required for your own trucking authority

The federal liability minimum for general freight is $750,000

A for-hire carrier hauling non-hazardous property in a truck of 10,001 pounds or more must carry at least $750,000 in public liability. Oil and hazardous loads need more.

Public liability means bodily injury, property damage, and environmental restoration you cause to others on the road. It does not cover your truck or the freight. Those are separate policies.

The minimum is a floor, not a recommendation. Many brokers set their own higher limit in the carrier packet. Check the packets of the brokers you plan to work with before you choose a limit.

$750,000For-hire carriers of non-hazardous property in vehicles of 10,001 pounds or more must carry at least $750,000 of financial responsibility. — 49 CFR 387.9, Legal Information Institute, retrieved 2026-09-27

Hazardous materials and oil raise the floor

Oil and most listed hazardous materials require $1,000,000. Certain bulk hazardous substances and explosives require $5,000,000, including in some trucks under 10,001 pounds.

An owner-operator starting out rarely hauls hazmat under a new authority. Insurers quote it at a premium, and a hazmat endorsement on your CDL is a separate step. If tanker or hazmat work is in your plan, price it before you apply. The authority application asks what you will carry.

$1,000,000 / $5,000,000Oil and most listed hazardous materials require $1,000,000 in financial responsibility; certain bulk hazardous materials require $5,000,000. — 49 CFR 387.9, Legal Information Institute, retrieved 2026-09-27

The forms your insurer files with FMCSA

Your insurer files proof of liability coverage directly with FMCSA, on Form BMC-91 or BMC-91X. You cannot file it yourself, and the authority will not go active without it.

BMC-91 is used for a single policy at the full limit. BMC-91X covers full coverage or any level of layered coverage. Most trucking insurers use BMC-91X. Household goods carriers also need cargo coverage filed on Form BMC-34.

The policy itself carries the MCS-90 endorsement. That endorsement is what makes the insurer answer to the public for a covered loss, even where the policy might otherwise exclude it. Keep a copy at your principal place of business.

Carriers file certificates of insurance with FMCSA on Form BMC-91 or BMC-91X for liability, and on Form BMC-34 for cargo. — 49 CFR 387.313T, U.S. Government Publishing Office, retrieved 2026-09-27

Carriers keep proof of financial responsibility, such as the Form MCS-90 endorsement, at their principal place of business. — 49 CFR 387.7, U.S. Government Publishing Office, retrieved 2026-09-27

Cargo insurance is federally required only for household goods

The federal cargo security rule applies to household goods carriers. A general freight owner-operator is not federally required to carry cargo insurance, though brokers almost always require it.

For household goods the minimum is $5,000 per truck and $10,000 per occurrence. For everything else, the requirement comes from the broker agreement or shipper contract, not the government. Read the cargo limit in each carrier packet, and the exclusions in the policy. Reefer breakdown and unattended-vehicle theft are common gaps.

$5,000 / $10,000Household goods carriers must carry cargo security of $5,000 per vehicle and $10,000 per occurrence. — 49 CFR 387.303T, U.S. Government Publishing Office, retrieved 2026-09-27

Cancellation notice, and why a missed premium ends the authority

A trucking liability policy stays in force until cancelled with notice. When the insurer cancels, FMCSA hears about it, and your registration depends on that coverage.

Between insurer and carrier, cancellation takes 35 days' written notice. The certificate on file with FMCSA cannot be withdrawn until 30 days after the insurer notifies FMCSA. That window is your chance to replace coverage.

By statute, registration stays in effect only while the security requirement is met. Once coverage is gone, revocation follows. A new policy filed before the cancellation date keeps the authority intact.

35 daysCancellation of a required policy takes 35 days' written notice between insurer and carrier. — 49 CFR 387.7, U.S. Government Publishing Office, retrieved 2026-09-27

30 daysInsurance certificates on file with FMCSA may not be cancelled until 30 days after written notice reaches FMCSA. — 49 CFR 387.313T, U.S. Government Publishing Office, retrieved 2026-09-27

A registration remains in effect only as long as the carrier continues to satisfy the security requirements. — 49 U.S.C. 13906, Legal Information Institute, retrieved 2026-09-27

What to line up before binding a policy

Bind coverage only once your entity, USDOT number, and truck are settled. The policy names all three, and changing any of them later means an endorsement.

Insure the same legal name the authority is issued to. If you form an LLC, form it first. A policy in your personal name will not match an authority in the company's name. The business setup guide covers that order.

Ask each insurer for the liability, cargo, and physical damage premiums separately, and the down payment. Then add the total to the startup cost worksheet, and line it up with the rest of the filing sequence.

No motor carrier may operate a vehicle until it has the required minimum financial responsibility in effect. — 49 CFR 387.7, U.S. Government Publishing Office, retrieved 2026-09-27

Questions