FMCSA Requirements
The Federal Motor Carrier Safety Administration (FMCSA) plays a pivotal role in ensuring the safety and security of commercial motor vehicle (CMV) operations in the United States. One of its key regulatory aspects involves insurance requirements for motor carriers, which are designed to protect the public and maintain financial responsibility standards within the industry.
The primary goal of FMCSA insurance requirements is to ensure that motor carriers have the financial capacity to cover potential liabilities arising from accidents or other incidents involving their vehicles. This mandatory insurance coverage helps:
Protect Public Safety by requiring carriers to hold insurance, the FMCSA ensures that victims of accidents involving commercial vehicles can receive compensation for damages and injuries.
Promote Financial Responsibility. It ensures that carriers are financially responsible for their operations, preventing scenarios where they might be unable to pay for damages caused by their vehicles.
Maintain Industry Standards. These requirements uphold a standard of professionalism and accountability within the trucking industry.
Types of Required Insurance Coverage
The FMCSA mandates different types of insurance coverage based on the nature of the carrier's operations:
Liability Insurance. This is the most common type of insurance required. It covers bodily injury and property damage resulting from the operation of commercial vehicles. The required coverage limits depend on the type of cargo being transported and the vehicle's weight.
For General Freight (Non-HazMat) Vehicles less 10,001 lbs: $300,000 minimum coverage.
For General Freight (Non-HazMat) Vehicles over 10,001 lbs: $750,000 minimum coverage.
For Hazardous Materials: $1,000,000 or $5,000,000 minimum coverage, depending on the type and quantity of hazardous materials transported.
For Passenger Carriers: $1,500,000 (vehicles seating capacity 15 or less) to $5,000,000 minimum coverage, based on the number of passengers.
Cargo Insurance. Required for carriers that transport household goods. This insurance covers loss or damage to cargo.
Minimum Coverage: $5,000 per vehicle and $10,000 per occurrence.
Compliance and Filing Requirements
Motor carriers must comply with FMCSA insurance requirements by:
Obtaining the Necessary Coverage. Carriers must purchase the required insurance from a licensed provider.
Filing Proof of Insurance. Insurance companies must file specific forms with the FMCSA to demonstrate that the motor carrier has the required coverage. These forms include:
Form MCS-90: Endorsement for motor carrier policies of insurance for public liability.
Form BMC-91 or BMC-91X: Proof of liability insurance.
Form BMC-34: Proof of cargo insurance.
Maintaining Continuous Coverage. Carriers must ensure that their insurance coverage remains in effect at all times. Lapses in coverage can result in penalties, including the suspension or revocation of operating authority.
FMCSA insurance requirements are a critical aspect of maintaining safety and financial responsibility within the commercial motor vehicle industry. By understanding and adhering to these requirements, motor carriers can ensure they operate legally and protect themselves, their drivers, and the public. Compliance not only avoids penalties but also promotes a culture of safety and professionalism in the trucking industry.
Insurance Filing Requirements
49 CFR Part 387 Section § 387.9
