FMCSA Insurance Requirements: BIPD, Cargo, and Bond Explained

Insurance is not optional in the trucking industry. The FMCSA mandates minimum levels of financial responsibility for all motor carriers operating in interstate commerce. Failing to maintain required coverage can result in suspension of your operating authority, fines, and personal liability exposure. Here is a breakdown of the different types of required coverage and the minimum amounts.

BIPD Insurance (Bodily Injury and Property Damage)

BIPD liability insurance covers injuries to other people and damage to their property caused by your vehicles. This is the primary insurance requirement for all for-hire and private carriers. The FMCSA minimum depends on the type of cargo and vehicle:

General freight (non-hazmat): $750,000 minimum
Household goods: $750,000 minimum
Oil (hazmat): $1,000,000 minimum
Other hazardous materials: $5,000,000 minimum
Passengers (small vehicles, 15 or fewer): $1,500,000 minimum
Passengers (large vehicles, 16+): $5,000,000 minimum

These are minimums set by federal law. Many shippers and brokers require $1,000,000 or more for general freight, and industry best practice for long-haul carriers is typically $1,000,000 in BIPD coverage regardless of the legal minimum. Your insurance company files a Form BMC-91 (for policies) or BMC-82 (for surety bonds) with the FMCSA to prove your coverage is active.

Cargo Insurance

Cargo insurance covers the value of the freight you are hauling in case of damage, theft, or loss. The FMCSA does not technically mandate cargo insurance for most carriers, but it does require household goods carriers to offer cargo coverage. In practice, virtually all shippers and brokers require cargo insurance as a condition of doing business. Common minimums are $100,000 for general freight and higher for specialized or high-value commodities. The standard cargo policy covers losses from fire, collision, overturning, and weather events, but check exclusions carefully — many policies exclude refrigeration breakdown, contamination, or theft from unattended vehicles.

Surety Bonds and Trust Funds

Freight brokers and freight forwarders must maintain a $75,000 surety bond (BMC-84) or trust fund (BMC-85). This protects carriers and shippers in case the broker fails to pay for services rendered. The bond amount was increased from $10,000 to $75,000 in 2013 to better protect carriers from broker insolvency. If you are a carrier checking a broker's credentials, verify that their bond is active and on file with the FMCSA.

What Happens If Insurance Lapses?

When your insurance company cancels a policy or it expires, they file a cancellation notice with the FMCSA. After a 30-day grace period, if no replacement filing is received, your operating authority is automatically suspended. Operating without required insurance is a serious federal violation that can result in fines of up to $16,000 per day. Carriers and brokers should monitor their FMCSA profile to ensure insurance filings stay current.

How to Verify Insurance

You can check whether a carrier has active insurance on file by looking up their DOT number on Carrier Lookup. The carrier profile shows whether BIPD coverage, cargo insurance, and bonds are currently on file. This is a critical step in carrier vetting — never tender a load to a carrier without verifying active insurance.

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