A new motor carrier needs liability insurance on file with the federal government before its operating authority becomes active. These answers from Assurance Group of America, an independent truck insurance agency headquartered in Florida and licensed in FL, GA, IN, MS, NC, OH, PA, SC, SD, TN and VA, cover the insurance side of starting a new authority.
Do I need insurance before my MC number is active?
Yes. Federal rules require proof of liability coverage on file before your operating authority is granted. Your insurer files it for you. Until that filing and your BOC-3 process agent designation are on record, the authority stays pending and you cannot haul for-hire loads under it. That is why the insurance step comes before your first load, not after (49 CFR 365.109).
How long do I have to get insurance on file?
Federal rules give applicants 90 days from the date notice of the application is published in the federal register of applications. Both the insurance filing and the BOC-3 must be on record within that window. Starting the quote process early helps, because underwriting a new venture can take time once an insurer asks for driver and truck details.
What does my insurance company file for me?
For bodily injury and property damage liability, the insurer files Form BMC-91 or BMC-91X with the federal government. A surety bond on Form BMC-82 is the other option. Household goods carriers also need a cargo filing on Form BMC-34 or a BMC-83 surety bond. General freight carriers do not have a federal cargo filing requirement.
What is the protest period after I apply?
After your application is published, interested parties have 10 days to file a protest. If no one opposes it, the grant becomes effective when the certificate, permit or license is issued, provided your insurance and BOC-3 filings are on record (49 CFR 365.115).
Is a BOC-3 a type of insurance?
No. Form BOC-3 designates process agents: people in each state who can accept legal papers on your behalf. It is filed by a process agent service or by you, not by your insurance company. It is still required within the same 90-day window as your insurance filing, so many new carriers handle both at the same time.
How much liability coverage does a new authority need?
The same federal minimums apply to new and established carriers. For most for-hire trucks rated 10,001 lbs or more hauling non-hazardous freight, the minimum is $750,000. Hazardous materials call for $1,000,000 or $5,000,000, and fleets of only vehicles under 10,001 lbs need $300,000. Our guide to federal liability insurance minimums explains each tier.
Do I need cargo insurance with a new authority?
Federal rules require cargo coverage only for household goods carriers. Most brokers and shippers, however, require motor truck cargo coverage in their carrier agreements before they give you a load. Read the insurance section of any carrier packet you plan to sign, and share it with your agent so the cargo limit matches what your customers ask for.
Can I get a quote before I have my USDOT and MC numbers?
Yes. An agent can start with your planned operation: truck type, what you haul, how far you run and each driver’s experience. The insurer needs your docket number to make the federal filing, so the filing itself happens once the number is issued. Getting quotes lined up early keeps the 90-day window from becoming a rush.
Why do insurers ask about my CDL experience?
Driver experience is one of the main things underwriters review for a new authority, along with each driver’s motor vehicle record, the planned radius and the equipment. Some insurers set minimum experience requirements for new ventures. Having CDL start dates and MVRs ready for every driver lets an agent take your operation to the carriers most likely to write it.
What happens if my insurance lapses after my authority is active?
If a policy is canceled, the insurer files a cancellation notice with the federal government, and your operating authority can be revoked unless a replacement filing is made in time. Brokers check filings too, so a gap can cost you loads. Keep payments current and talk to your agent well before renewal.
I’m leasing onto a carrier. Do I need my own authority insurance?
No. When you lease onto a motor carrier, that carrier’s primary liability covers your truck while you work under its dispatch. Leased owner-operators often carry non-trucking liability, physical damage and occupational accident coverage instead. Our guide to primary liability vs bobtail insurance explains how those fit together.
What should I have ready when I call for a new authority quote?
Have your USDOT and MC numbers if issued, CDL experience and an MVR for each driver, year, make and VIN for each truck and trailer, where the trucks are kept overnight, what you haul and how far you run. If you were insured under another carrier before, bring that policy and any loss runs; your agent reviews them as part of the quote.
Starting a new authority?
A licensed agent at Assurance Group of America can line up quotes from several carriers and coordinate the insurance filing with your timeline. See all commercial truck insurance coverage types, or start a quote now. Se habla español.