New Authority Trucking Insurance

For-hire interstate property carriers need primary liability filed with FMCSA by the insurer on Form BMC-91 or BMC-91X: at least $750,000 for general freight in vehicles of 10,001 lbs or more, more for oil and hazmat. Most brokers and shippers also ask for $1,000,000 liability and $100,000 cargo.

New carriers enter FMCSA's New Entrant Safety Assurance Program and get a safety audit, usually within the first 12 months. Clean driver files, drug and alcohol testing, hours of service records and maintenance files help both the audit and your renewal pricing.

• CDL experience for every driver (two or more years helps)
• MVRs and prior loss runs if you drove under another authority
• Equipment list with VINs and values
• Commodities, radius and states

After you apply for operating authority through FMCSA's registration system, there's a protest period before the authority can become active. During that time your insurer must file proof of liability (BMC-91 or BMC-91X), and you must designate process agents (BOC-3). The authority won't go active until both are on file. See FMCSA insurance requirements for the filing details.

Once you're active, you also need UCR registration and, for qualifying trucks, IRP plates and an IFTA license from your base state. Within your first year FMCSA will schedule a New Entrant Safety Audit, so keep driver qualification files, hours-of-service records, drug and alcohol testing enrollment and maintenance files ready.

With no loss history under your own authority, insurers price new carriers cautiously and many standard markets won't write them at all. Personal CDL experience counts a lot: two or more years of verifiable driving, a clean MVR and prior employment with a carrier make you a much better risk. Some new carriers lease on to an established carrier for a year to build history first; see owner-operator insurance for how that changes coverage.

Down payments for new authorities are often high, so budget for the first payment and premium financing. Missing a payment can lead to cancellation, and FMCSA will revoke the authority if the filing is cancelled and not replaced.

• Primary liability filed with FMCSA ($750,000 minimum for general freight; $1,000,000 is what most brokers want)
• Cargo at $100,000
• Physical damage if the truck is financed
• General liability if shippers ask for it
• Reefer breakdown for refrigerated freight

See truck insurance cost for what drives the price.

Make sure everyone is safe, call police when anyone is injured or vehicles must be towed, and photograph the scene, the vehicles, the load and the seal. Get the other parties' insurance information. Don't admit fault or sign anything except the police and inspection paperwork. Report the claim to your agent or insurer right away; most policies require prompt notice, and a late report can complicate coverage.

Under FMCSA rules (49 CFR 390.15), qualifying crashes must be recorded in your accident register, and drivers involved in certain crashes must be drug and alcohol tested under Part 382. For cargo, keep the bill of lading, delivery receipt notations, reefer download (if any) and photos. Exceptions noted at delivery are often what decides a cargo claim.

Brokers, shippers, warehouses and port equipment providers will ask for a certificate of insurance, often naming them as certificate holder or additional insured. Some also want a waiver of subrogation or specific limits. Send the contract to your agent before you sign, because a promise you make in a contract that your policy doesn't match is your problem, not the insurer's. Common requests include $1,000,000 auto liability, $100,000 cargo, general liability and trailer interchange for drayage.

Most coverage problems come from paperwork, not accidents. Add new trucks and drivers to the policy before they run, remove sold units, report radius or commodity changes, and pay installments on time. A cancellation for non-payment triggers an FMCSA filing cancellation and can take your authority down (see FMCSA insurance requirements). At renewal, request loss runs from your current insurer early so we can shop with them in hand.

• FMCSA – Insurance requirements (49 CFR 387)
• eCFR – 49 CFR 387.9 financial responsibility minimums
• FMCSA – New Entrant Safety Assurance Program