A for-hire carrier hauling general freight in interstate commerce in a vehicle of 10,001 pounds or more must carry at least $750,000 in public liability coverage. Oil and most placarded hazardous materials raise the floor to $1 million, and bulk and high-hazard materials to $5 million. A for-hire carrier whose fleet is made up only of vehicles under 10,001 pounds needs $300,000. The insurer proves the coverage with an MCS-90 endorsement and, for authority holders, a BMC-91 or 91X filing with FMCSA.
These are floors set by 49 CFR Part 387. Shippers, brokers and lessors can ask for more in a contract, and many do; the regulation only fixes the minimum that lets you operate.
Two sets of rules, one purpose
Part 387 has two parts that apply to most trucking companies at once:
- Subpart A (387.1 to 387.19) sets the minimum levels of financial responsibility that must be in effect before a vehicle is operated, and the proof kept at your office (the MCS-90 endorsement).
- Subpart C (387.301 onward) is the condition attached to for-hire operating authority: the insurance must be filed with and accepted by FMCSA (the BMC-91 or 91X certificate) or the authority cannot be issued or remain in force.
Who Subpart A applies to
387.3(a): for-hire motor carriers operating motor vehicles transporting property in interstate or foreign commerce. 387.3(b): motor carriers, for-hire or private, transporting hazardous materials, hazardous substances or hazardous wastes in interstate, foreign or intrastate commerce.
387.3(c)(1) excludes vehicles with a GVWR of less than 10,001 pounds, except when they carry any quantity of Division 1.1, 1.2 or 1.3 explosives, Division 2.3 Hazard Zone A or Division 6.1 Packing Group I Hazard Zone A material, or a highway route controlled quantity of Class 7 radioactive material in interstate or foreign commerce.
A private carrier of non-hazardous property is therefore outside Subpart A. It still carries whatever insurance its state requires.
The schedule of limits (387.9)
| Type of carriage | What is transported | Minimum |
|---|---|---|
| For-hire, interstate or foreign, GVWR 10,001 lb or more | Property (nonhazardous) | $750,000 |
| For-hire and private, interstate, foreign or intrastate, GVWR 10,001 lb or more | Hazardous substances in bulk in cargo tanks, portable tanks or hopper-type vehicles; bulk Division 1.1, 1.2 or 1.3; bulk Division 2.3 Hazard Zone A; bulk Division 6.1 PG I Hazard Zone A; bulk Division 2.1 or 2.2; highway route controlled quantities of Class 7 | $5,000,000 |
| For-hire and private, interstate or foreign in any quantity, or intrastate in bulk only, GVWR 10,001 lb or more | Oil listed in 172.101; hazardous waste, hazardous materials or hazardous substances not in the $5 million row | $1,000,000 |
| For-hire and private, interstate or foreign, GVWR under 10,001 lb | Bulk Division 1.1, 1.2 or 1.3; bulk Division 2.3 Hazard Zone A; bulk Division 6.1 PG I Hazard Zone A; highway route controlled quantities of Class 7 | $5,000,000 |
"In bulk" has its own meaning in 387.5: property carried in containment systems with capacities over 3,500 water gallons, except that for Division 1.1 to 1.3 explosives and Division 2.3 Hazard Zone A or 6.1 PG I Hazard Zone A materials, any quantity counts as bulk.
The authority filing limits (387.303T)
For carriers holding for-hire authority, 387.303T(b) sets the amounts that must be on file with FMCSA:
| Equipment | Cargo | Minimum on file |
|---|---|---|
| Fleet including only vehicles under 10,001 lb GVWR | Property (non-hazardous) | $300,000 |
| Freight vehicles of 10,001 lb or more GVWR | Property (non-hazardous) | $750,000 |
| Freight vehicles of 10,001 lb or more GVWR | Oil and hazardous materials not in the $5 million row | $1,000,000 |
| Freight vehicles of 10,001 lb or more GVWR | Hazardous substances in tanks or hoppers over 3,500 water gallons, bulk explosives, and the other high-hazard materials listed | $5,000,000 |
| Passenger vehicle seating 16 or more, including the driver | Passengers | $5,000,000 |
| Passenger vehicle for 15 or fewer, including the driver, for compensation | Passengers | $1,500,000 |
The $300,000 line is the one that matters for cargo van and small straight-truck operators: it applies only when every vehicle in the fleet is under 10,001 pounds GVWR. Add one heavier truck, or a pickup and trailer combination that puts a vehicle over the line, and the $750,000 minimum applies. 387.303T(b)(3) adds that carriers are "at no time required to have security for more than the required minimum limits" set by DOT, which is a statement about the federal requirement, not about what customers may demand.
The paperwork: MCS-90, BMC-91 and friends
| Form | What it is | Rule |
|---|---|---|
| MCS-90 | Endorsement to the insurance policy that guarantees the federal minimum for public liability | 387.7(d)(1), 387.15 |
| MCS-82 | Surety bond alternative to the MCS-90 | 387.7(d)(2), 387.15 |
| BMC-91 / BMC-91X | Certificate of insurance filed with FMCSA by the insurer for authority holders (a 91X may represent full coverage or any level of aggregation) | 365.109T(a)(5), 387.313T(a)(3) |
| BMC-82 | Surety bond filed instead of a certificate | 365.109T(a)(5)(i), 387.313T(a)(5) |
| BMC-34 / BMC-83 | Cargo liability filing for household goods carriers | 365.109T(a)(5)(iii) |
| BMC-84 / BMC-85 | Broker surety bond / trust fund | 387.307(a) |
| BMC-35 / BMC-36 | Notice of cancellation of insurance / surety bond | 387.313T(d) |
387.7(d): proof of the required coverage, the MCS-90 or MCS-82, "shall be maintained at the motor carrier’s principal place of business." 387.7(e)(1) makes it public information to be produced "upon reasonable request by a member of the public." 387.15 requires the endorsement to be issued "in the exact name of the motor carrier." For vehicles of carriers domiciled in Canada or Mexico, 387.7(f) requires a legible English copy on board.
For a new authority, the BMC-91 or 91X must reach FMCSA within 20 days after your application is published in the FMCSA Register (365.109T(a)(5)). See how to get your own trucking authority for the full sequence.
Continuous coverage and cancellation
- 387.7(a): no motor carrier "shall operate a motor vehicle until" the minimum coverage is obtained and in effect.
- 387.7(b)(1): policies and endorsements stay in effect continuously until terminated. Either the insurer or the carrier may cancel on 35 days’ written notice to the other, counted from transmission.
- 387.313T(d): filings with FMCSA cannot be cancelled until 30 days after FMCSA actually receives the notice on Form BMC-35 or BMC-36.
- 387.301T(c): the security accepted by FMCSA "shall remain in effect at all times." Under 387.301T(a)(1) authority cannot remain in force without it. FMCSA’s April 2026 Motus notice says that when a registrant fails to keep the required insurance on file, "its operating authority will be revoked or suspended involuntarily."
- 387.313T(e): a replacement filing ends the old insurer’s liability on the replacement’s effective date. Switch insurers by having the new filing accepted first.
Primary, excess and self-insurance
The minimum does not have to come from one policy. 387.303T(a) defines primary security as coverage from the insurer "responsible for the first dollar of coverage" and excess security as coverage above it, up to the required minimum. When more than one insurer is used to reach the limit, 387.313T(a)(2) requires a separate endorsement and Form BMC-91X certificate from each insurer. Large carriers can instead apply to self-insure under 387.309; the application fee for original qualification as a self-insurer for bodily injury and property damage is $4,200 (360.3T(f)(50)), and under 387.7(d)(3) the self-insurance authorization only serves as proof while the carrier keeps a satisfactory safety rating.
Cargo insurance
For general freight, Part 387 sets no federal cargo insurance minimum. The only federal cargo requirement in 387.301T(b) is for household goods carriers, and 387.303T(c) sets it at $5,000 per vehicle and $10,000 for losses at any one time and place. Cargo coverage for other freight is a commercial matter: brokers and shippers commonly require it in their contracts, and the amount is whatever the contract says.
Bobtail and non-trucking liability for leased owner-operators
These are not federal minimums either. What the rules do require is that a lease spells the arrangement out. 376.12(j)(1): the lease "shall clearly specify the legal obligation of the authorized carrier to maintain insurance coverage for the protection of the public" and "who is responsible for providing any other insurance coverage for the operation of the leased equipment, such as bobtail insurance," plus the amount of any charge-back to the owner-operator. 376.12(j)(2): if you buy coverage through the carrier, it must give you a copy of each policy on request and a certificate showing insurer, policy number, dates, coverage, cost and deductible.
Brokers
387.307(a), in effect from 16 January 2026: a broker must have a $75,000 surety bond (Form BMC-84) or trust fund (Form BMC-85) in effect, and FMCSA "will not register a broker until" it is. Under 387.307(b) trust fund assets are limited to cash, irrevocable letters of credit from a federally insured depository institution, and Treasury bonds, and must be convertible to cash within 7 calendar days.
Penalties and audit consequences
- 387.17: a person who knowingly violates Subpart A is liable for a civil penalty set in Part 386, Appendix B, and each day of a continuing violation is a separate offense.
- 385.321, items 9 and 10: operating without the required minimum financial responsibility (property or passenger) is an automatic failure of the new entrant safety audit. See the new entrant audit page.
- 385.308(a)(6): a new entrant found operating without the required coverage may be sent for an expedited audit or compliance review.
Worked examples
Example 1. A hotshot operator with a one-ton pickup (GVWR 12,000 lb) pulling a gooseneck, hauling machinery for hire between states. The truck alone is over 10,001 lb GVWR, so the minimum is $750,000, filed on a BMC-91X, with an MCS-90 on the policy.
Example 2. A courier with two cargo vans (GVWR 9,500 lb each) delivering boxes for hire across a state line. The fleet includes only vehicles under 10,001 lb GVWR carrying non-hazardous property, so the filing minimum under 387.303T(b)(1) is $300,000.
Example 3. A private fuel distributor hauling gasoline in a cargo tank of more than 3,500 water gallons within one state. 387.3(b) brings intrastate hazmat carriers into Subpart A. Gasoline is a hazardous material listed in 172.101; carried in bulk in intrastate commerce and not one of the materials named in the $5 million rows, it falls in the $1,000,000 row. If the load were a material in the $5 million row (for example bulk Division 2.1 flammable gas), the minimum would be $5,000,000.
Insurance is usually the largest fixed cost of a new authority; put the premium into the cost per mile calculator before you quote rates.
Common mistakes
- Buying a policy but not having the insurer file the BMC-91X, so the authority is never granted.
- Assuming the $300,000 level applies because your main truck is light, when one vehicle in the fleet is 10,001 lb or more.
- Letting the policy lapse at renewal. A gap can cost you the authority and is an automatic audit failure for a new entrant.
- Assuming federal rules require cargo coverage for general freight. They do not; your contracts probably do.
- Signing a lease without reading the insurance clause. 376.12(j) requires it to say who pays for bobtail and what is charged back.