If you're applying for operating authority or running interstate freight, insurance isn't just a business decision. It's a federal requirement, and your authority can't become active, or stay active, without the right filings on record with the Federal Motor Carrier Safety Administration (FMCSA). This article explains the federal minimums, the filings your insurer makes, the MCS-90 endorsement, and the coverages shippers and brokers typically expect beyond the legal minimum. It complements our commercial trucking insurance checklist.
Who the federal rules apply to
FMCSA's financial responsibility rules in 49 CFR Part 387 apply to motor carriers operating in interstate or foreign commerce (and, for certain hazardous materials, intrastate commerce). Two subparts matter most:
- Subpart A (§387.7 and §387.9): minimum financial responsibility levels for motor carriers of property. Read the regulation at eCFR – 49 CFR 387.9.
- Subpart C (§387.301 and following): the filing requirements for for-hire carriers with operating authority, including the forms your insurer files with FMCSA.
Passenger carriers have separate requirements in Subpart B.
Federal minimum public liability limits (property carriers)
Under 49 CFR 387.9, the minimums for vehicles with a gross vehicle weight rating (GVWR) of 10,001 pounds or more are:
| Type of operation | Minimum public liability |
|---|---|
| For-hire, non-hazardous property, interstate | $750,000 |
| Oil, and hazardous materials not in the highest-risk category | $1,000,000 |
| Certain high-risk hazardous materials (e.g., bulk hazardous substances in cargo tanks, certain explosives, highway-route-controlled radioactive material) | $5,000,000 |
Certain high-risk hazardous materials carried in vehicles under 10,001 pounds GVWR also require $5,000,000. Check the regulation's table for the exact commodity definitions.
These limits have not changed in decades, and they're a floor. Many shippers, brokers and load boards require $1,000,000 in auto liability for general freight, and some require more. Contracts control what you actually need to win loads.
Passenger carriers
For-hire passenger carriers have higher federal minimums under 49 CFR 387.33: $1,500,000 for vehicles seating 15 or fewer passengers (including the driver) and $5,000,000 for vehicles seating 16 or more. See eCFR – 49 CFR 387.33.
The filings: BMC-91, BMC-91X and BMC-34
When you apply for for-hire operating authority (an MC number), your insurer must electronically file proof of coverage with FMCSA:
- Form BMC-91 or BMC-91X: certifies public liability (bodily injury and property damage) coverage. BMC-91X allows multiple insurers to be aggregated to reach the required limit. See 49 CFR 387.313.
- Form BMC-34: certifies cargo liability insurance for household goods carriers, which must carry at least $5,000 per vehicle and $10,000 per occurrence under 49 CFR 387.303.
- Form BMC-84 or BMC-85: the $75,000 surety bond or trust fund required for freight brokers and freight forwarders (not motor carriers).
You'll also need a BOC-3 designation of process agents filed for your authority. FMCSA's registration portal explains the steps to get operating authority: FMCSA – Registration.
If your insurer cancels, it files a cancellation notice (Form BMC-35) with FMCSA, and your authority can be revoked if replacement coverage isn't filed before the cancellation takes effect. Keep your premium current and respond quickly to any lapse notices.
The MCS-90 endorsement
The MCS-90 is a federally required endorsement on the auto liability policy of carriers subject to the financial responsibility rules. It guarantees that the insurer will pay a final judgment for public liability up to the required minimum, even if the policy otherwise wouldn't cover the loss (for example, an unlisted vehicle or driver). It is not additional coverage for the carrier: if the insurer pays a claim that the policy wouldn't otherwise cover, it can seek reimbursement from the motor carrier. Treat it as public protection, not a safety net for you.
Intrastate carriers
Carriers operating only within one state are generally regulated by that state, which may set its own insurance minimums and filing requirements (some states adopt the federal limits, others set different amounts). Hazardous materials rules can apply intrastate. Check with your state's transportation or public utilities agency.
Coverages beyond the federal minimum
The federal rules address public liability. A complete trucking program usually includes:
- Primary auto liability at the limit your contracts require.
- Motor truck cargo: covers the freight you haul. Watch for exclusions such as unattended vehicles, reefer breakdown and high-theft commodities.
- Physical damage: comprehensive and collision on your tractors and trailers. Lenders and lessors require it.
- Non-trucking liability (bobtail) for owner-operators leased to a motor carrier, covering use of the truck when not under dispatch.
- Trailer interchange if you pull trailers owned by others under an interchange agreement.
- General liability for premises and non-auto exposures, often required by shippers and terminals.
- Workers' compensation for employee drivers and staff, or occupational accident coverage for independent owner-operators where permitted.
- Umbrella or excess liability above the primary auto limit.
New authorities: what to expect
New ventures typically face higher premiums and fewer insurers until they build a safety record. Underwriters look at driver experience and motor vehicle records, the commodities you haul, your radius of operation, equipment age and your safety management practices. Your Compliance, Safety, Accountability (CSA) scores and inspection history become central once you're operating; see FMCSA SMS. Maintaining clean inspections and enforcing driver qualification standards are among the most effective ways to improve insurability.
Our data pages on new trucking companies by state, truck inspection out-of-service rates and truck accident statistics by state draw on public FMCSA data.
Checklist for new interstate carriers
- Determine your federal minimum based on commodity and GVWR.
- Confirm the limit your target shippers and brokers require (often $1M).
- Have your insurer file the BMC-91 or BMC-91X (and BMC-34 for household goods).
- File your BOC-3 process agent designation.
- Add cargo, physical damage and general liability as contracts require.
- Keep driver files and maintenance records current; underwriters will ask.
- Calendar your policy renewal well ahead of the expiration date to avoid a filing lapse.
Contact Alishahi Insurance or call (877) 711-4545.
Frequently asked questions
What is the FMCSA minimum insurance for a trucking company?
For for-hire interstate carriers of non-hazardous property in vehicles of 10,001 pounds GVWR or more, the federal minimum public liability is $750,000. Higher minimums apply to oil and hazardous materials.
What is a BMC-91 filing?
It's the certificate of insurance your insurer files with FMCSA to prove public liability coverage for your operating authority. BMC-91X allows aggregation of multiple policies.
What is the MCS-90 endorsement?
A federally required endorsement guaranteeing payment of final judgments for public liability up to the federal minimum. The insurer can seek reimbursement from the carrier for claims the policy wouldn't otherwise cover.
Do brokers require more than the federal minimum?
Often yes. Many shippers and freight brokers require $1,000,000 in auto liability, plus cargo coverage.
What insurance do household goods movers need?
In addition to public liability, interstate household goods carriers must file cargo insurance (Form BMC-34) of at least $5,000 per vehicle and $10,000 per occurrence.
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. This is general information, not legal advice or a coverage determination. Coverage depends on policy language and underwriting, and laws change, so confirm current rules with your state regulator.