The Federal Motor Carrier Safety Administration (FMCSA) requires commercial trucking companies to maintain minimum levels of financial responsibility, but the agency acknowledges that the current $750,000 liability insurance minimum for many operations may not cover the full costs associated with serious accidents, including property damage, personal injuries, and fatalities.
The FMCSA’s regulations, outlined in 49 CFR Part 387, establish insurance requirements based on the type of freight transported and the size of the vehicle. While $750,000 is the minimum for most general freight carried by larger trucks, the agency recognizes that claims can—and often do—exceed this amount. For trucks under 10,001 pounds hauling non-hazardous freight, the minimum requirement is $300,000. However, the FMCSA mandates significantly higher coverage—$5,000,000—for the transportation of certain hazardous materials, including explosives.
Industry stakeholders report that many brokers and shippers are now requiring carriers to maintain at least $1,000,000 in liability coverage, even though $750,000 remains the legal minimum. This de facto standard is driven by concerns about potential litigation costs and the increasing severity of accidents. One trucking company operator noted the practical necessity of exceeding the minimum, stating that securing freight often depends on demonstrating higher levels of coverage.
The FMCSA requires carriers to file specific documentation—the BMC-91 (or BMC-91X) form—to prove they have the required liability coverage. An MCS-90 endorsement further confirms that the insurance meets federal standards. Failure to maintain adequate insurance and properly file the necessary paperwork can result in penalties and the suspension of operating authority.
The agency’s regulations define “insurance premium” as the monetary sum paid to an insurer for accepting liability for public liability claims. The definition of a “motor carrier” encompasses both for-hire and private carriers, meaning these insurance requirements apply broadly across the commercial trucking industry.
Despite the existing regulations, the debate over adequate insurance coverage continues. The potential for claims exceeding $750,000, coupled with the demands of brokers and shippers, is prompting many carriers to voluntarily increase their coverage levels to mitigate risk and ensure continued access to freight opportunities. As of March 10, 2026, the FMCSA has not announced any plans to formally raise the minimum liability insurance requirements.
