Most for-hire trucks rated 10,001 lbs or more that haul non-hazardous freight across state lines must carry at least $750,000 in public liability coverage. Hazardous materials raise the federal minimum to $1,000,000 or $5,000,000, and a fleet made up only of vehicles under 10,001 lbs has a $300,000 minimum.
This guide from Assurance Group of America, an independent commercial truck insurance agency headquartered in Florida and licensed in FL, GA, IN, MS, NC, OH, PA, SC, SD, TN and VA, explains each federal tier, who it applies to, and what has to be on file. It is general information, not coverage advice.
Key facts
- $750,000: for-hire, interstate, non-hazardous property, vehicle rated 10,001 lbs or more (49 CFR 387.9).
- $1,000,000: oil and most hazardous materials, vehicle rated 10,001 lbs or more.
- $5,000,000: certain bulk hazardous materials and highway-route-controlled quantities of radioactive material.
- $300,000: for-hire fleets that include only vehicles rated under 10,001 lbs, hauling non-hazardous property (49 CFR 387.303).
- The insurer files proof of coverage with the federal government on Form BMC-91 or BMC-91X.
What is the federal minimum liability for a semi hauling general freight?
The minimum is $750,000 for a for-hire carrier moving non-hazardous property in interstate commerce with a vehicle rated 10,001 lbs or more. That is entry (1) of the schedule of limits in 49 CFR 387.9.
Public liability coverage pays for bodily injury and property damage you cause to others on the road. It does not repair your own truck or cover the freight you haul. Those are separate coverages.
The $750,000 figure is a floor set by federal rules, not a recommendation. Many brokers and shippers ask carriers for more before they tender loads.
How much liability do hazmat loads need?
Hazardous materials move the minimum to either $1,000,000 or $5,000,000, depending on what you haul and how it is packaged. Both tiers apply to for-hire and private carriers.
The $1,000,000 tier covers oil listed in 49 CFR 172.101 and hazardous materials, substances or waste that are not named in the $5,000,000 tier. It applies to vehicles rated 10,001 lbs or more, in any quantity in interstate commerce, or in bulk within one state.
The $5,000,000 tier covers bulk hazardous substances in cargo tanks, portable tanks or hopper-type vehicles, bulk Division 1.1, 1.2 or 1.3 explosives, bulk Division 2.3 Hazard Zone A and Division 6.1 Packing Group I Hazard Zone A materials, bulk Division 2.1 or 2.2 gases, and highway-route-controlled quantities of Class 7 radioactive material.
| Who it applies to | What is hauled | Federal minimum |
|---|---|---|
| For-hire, interstate, vehicle 10,001 lbs or more | Non-hazardous property | $750,000 |
| For-hire or private, vehicle 10,001 lbs or more | Oil; hazardous materials not in the $5M tier | $1,000,000 |
| For-hire or private, vehicle 10,001 lbs or more | Listed bulk hazmat, bulk explosives, certain bulk gases, radioactive (HRCQ) | $5,000,000 |
| For-hire or private, interstate, vehicle under 10,001 lbs | Bulk explosives 1.1–1.3, certain Zone A materials, radioactive (HRCQ) | $5,000,000 |
| For-hire fleet with only vehicles under 10,001 lbs | Non-hazardous property | $300,000 |
Sources: 49 CFR 387.9, Table 1 and 49 CFR 387.303(b)(1).
Does a truck under 10,001 lbs need the same coverage?
No. A for-hire fleet that includes only vehicles rated under 10,001 lbs and hauls non-hazardous property has a $300,000 minimum under 49 CFR 387.303. One heavier vehicle in the fleet changes the picture, because the rule covers fleets made up only of small vehicles.
Hazmat still matters at this size. A vehicle under 10,001 lbs moving bulk Division 1.1 to 1.3 explosives, certain Hazard Zone A materials or highway-route-controlled radioactive material falls in the $5,000,000 tier.
Weight ratings come from the manufacturer’s label on the door jamb, not from how much you usually load. Federal rules count the gross vehicle weight rating or gross combination weight rating, whichever is greater, when deciding whether a vehicle is a commercial motor vehicle (49 CFR 390.5).
Who files proof of insurance, and on what form?
Your insurance company files it, not you. For bodily injury and property damage liability, the insurer files Form BMC-91 or BMC-91X with the federal government, or a surety files Form BMC-82 (49 CFR 365.109).
A new carrier has 90 days from the date notice of its application is published in the federal register of applications to get that filing and a Form BOC-3 process agent designation on record. The new authority insurance FAQ walks through those steps in order.
The filing has to stay in place. If a policy is canceled, the insurer files a cancellation notice, and your operating authority can be revoked unless a replacement filing is made in time.
Is cargo insurance part of the federal minimum?
Only for household goods carriers. Federal rules require a cargo filing on Form BMC-34 or a BMC-83 surety bond from household goods motor carriers and freight forwarders, and from no one else.
In practice, most brokers and shippers require motor truck cargo coverage before they give you a load. Contract requirements, not federal rules, drive that decision for general freight carriers.
Why do brokers ask for more than the federal minimum?
Brokers and shippers set their own insurance requirements in carrier agreements. Those requirements often exceed the federal floor because one serious crash can cost far more than $750,000.
Before you sign a carrier packet, read the insurance section. It usually lists the liability limit, the cargo limit, and whether the broker must be named as a certificate holder.
Our free Coverage Requirements Checker shows the federal minimum for your setup in a few clicks. A licensed agent can then compare that with what your contracts ask for.
Do state rules change these numbers?
They can for trucks that never cross state lines. The tiers above come from federal rules for interstate commerce, plus intrastate bulk hazmat. Carriers that operate only within one state follow that state’s own minimums, which can differ.
If you run both intrastate and interstate loads, the federal tier applies to the interstate work. Ask your agent which rules apply to your mix of loads.
How do I know which tier fits my operation?
Start with three facts: what you haul, your truck’s weight rating, and whether you cross state lines. Those three answers place you in one row of the table above.
- Check the GVWR and GCWR on your truck’s door-jamb label.
- List every commodity you haul, including any placarded hazmat.
- Note whether any trip, even one leg, crosses a state line.
- Call an agent to confirm the tier and to compare it with your broker and shipper contracts.
Talk to an agent about your liability limits
A licensed agent at Assurance Group of America can confirm the federal tier for your trucks and shop your operation with several carriers. Se habla español.