This is a reminder that the Cargo Insurance for Property Loss or Damage rule will be effective on March 21, 2011. The Federal Motor Carrier Safety Administration ("FMCSA") final rule amended 49 CFR Parts 365 and 387. This final rule eliminated the requirement for "for-hire" motor carriers of property and freight forwarders to maintain cargo insurance in the once prescribed minimum amounts of $5,000 per vehicle and $10,000 per occurrence and file evidence of this insurance with the FMCSA. This final rule only applies to "for-hire" motor carriers and freight forwarders as defined in 49 USC 13102.
The term motor carrier means a person providing motor vehicle transportation for compensation. The term freight forwarder means a person holding itself out to the general public (other than as a pipeline, railroad, motor, or water carrier) to provide transportation of property for compensation.
This final rule does not apply to household goods motor carriers and household goods freight forwarders. Therefore, they continue to be subject to the cargo insurance requirement.
Trucking Insurance Services LLC