Start with the federal floor in 49 CFR 387.9: $750,000 of public liability for non-hazardous freight in trucks of 10,001 pounds or more, $1,000,000 for oil and most hazardous materials, and $5,000,000 for the most dangerous loads. A for-hire carrier needs that liability filed with FMCSA before its authority activates. Cargo coverage isn’t federally required except for household goods carriers, but freight contracts commonly ask for it. Physical damage protects your own trucks, general liability covers business risks a commercial auto policy doesn’t, and workers’ comp follows your state’s law once you have employees.
The federal minimum: auto liability
- $750,000 for for-hire carriers of non-hazardous property in interstate or foreign commerce, in vehicles with a gross vehicle weight rating of 10,001 pounds or more.
- $1,000,000 for for-hire and private carriers of oil and of hazardous materials, wastes and substances not in the top tier, in vehicles of 10,001 pounds or more.
- $5,000,000 for hazardous substances in bulk in cargo tanks, portable tanks or hopper-type vehicles, bulk explosives and certain bulk gases, and highway route controlled quantities of radioactive material. Vehicles under 10,001 pounds carrying certain explosives, poison inhalation hazards or radioactive material need the same limit.
- $300,000 for for-hire fleets made up only of vehicles under 10,001 pounds hauling non-hazardous property, as an FMCSA filing requirement for operating authority.
For trucks subject to these limits, the policy carries the federal MCS-90 endorsement, and a for-hire carrier’s insurer files proof with FMCSA on a BMC-91 or BMC-91X. These are floors, not recommendations; a box truck over 10,001 pounds hauling for hire across state lines is held to the same $750,000 as a tractor-trailer. What the MCS-90 does.
Cargo coverage
FMCSA requires cargo security only from household goods carriers, filed on a BMC-34 or BMC-83, at $5,000 for loss on any one vehicle and $10,000 for losses at any one time and place. General freight carriers have no federal cargo requirement.
That doesn’t mean you won’t need it. Cargo requirements come from contracts: broker-carrier agreements, shipper contracts and equipment providers. In intermodal work, for example, most UIIA equipment providers require some type of cargo coverage, with limits and deductibles that vary by provider. Read each agreement for the limit and the commodities it expects. Do I need cargo insurance?
Physical damage on your own equipment
Liability pays for harm you cause to others; it doesn’t repair your own truck. A commercial auto policy can protect against liability and also against damage to the covered vehicles themselves, and that second part, physical damage coverage, is what pays for your tractor and trailers after a collision or other covered loss.
No federal rule requires physical damage coverage. If the truck is financed or leased, check the finance or lease agreement, which may require it. If you pull trailers you don’t own under interchange agreements, that equipment needs trailer interchange coverage instead.
General liability and the rest
A commercial general liability policy covers bodily injury and property damage arising from your premises and operations, and it excludes automobiles and property in your care, custody or control. That’s why a trucking company usually carries both: commercial auto for the trucks and GL for the rest of the business, such as a visitor hurt at your yard or office. The UIIA, for example, requires intermodal carriers to carry general liability of $1 million per occurrence. General liability for truckers.
- Workers’ compensation once you hire employees, under your state’s law. Owner-operators should read occupational accident vs. workers’ comp.
- Trailer interchange if you pull equipment you don’t own under interchange agreements.
- Non-trucking liability if you lease your truck to another carrier instead of running your own authority. Non-trucking vs. bobtail.
State rules and getting started
The federal limits apply to for-hire interstate work and to hazardous materials. Carriers that stay within one state follow that state’s rules, which can set different limits, filings or cargo requirements. Check your state’s trucking insurance rules.
Keep your business name and address identical across your state filings and your FMCSA application, since FMCSA says any mismatch delays the grant of authority, and start the insurance conversation the day you apply. A new authority has no loss history, so expect underwriters to ask more about the drivers, the equipment, what you haul and where. How to get MC authority.
Common questions
What is the minimum insurance for a new trucking company?
For a for-hire carrier hauling non-hazardous freight interstate in trucks of 10,001 pounds or more, $750,000 of auto liability. Hazardous materials raise the minimum to $1,000,000 or $5,000,000.
Is cargo insurance required for a new trucking company?
Not federally, unless you haul household goods. Brokers, shippers and equipment providers often require it by contract.
Do I need general liability if I have truck insurance?
Usually. Commercial general liability excludes automobiles and commercial auto is built for the trucks, so GL covers premises and operations risks the auto policy isn’t designed for.
Is physical damage insurance required?
Not by federal law. It protects your own trucks and trailers, and a finance or lease agreement on the equipment may require it.
Does a box truck need the $750,000 minimum?
If it has a GVWR of 10,001 pounds or more and hauls for hire in interstate commerce, yes. For-hire fleets of only vehicles under 10,001 pounds have a $300,000 filing requirement instead.
Do state insurance rules differ from federal ones?
Yes. Carriers operating only within one state follow that state’s limits and filings, which can differ from the federal rules.
Sources
- 49 CFR Part 387, Subpart A (eCFR): applicability, Form MCS-90, minimum levels
- 49 CFR Part 387, Subpart C (eCFR): insurance filings, BMC-91/91X, minimum limits
- FMCSA: insurance filing requirements
- California Department of Insurance: commercial insurance guide
- Intermodal Association of North America: UIIA insurance requirements
General information about insurance requirements for new trucking companies as of October 2026, not legal or tax advice; 49 CFR Part 387, your state’s rules and your contracts control. Coverage depends on underwriting and the terms, conditions and exclusions of the policy actually issued.