FMCSA Insurance Requirements: What New Trucking Companies Need To Know

If you’re opening a new trucking company with a new motor carrier number, understanding the FMCSA insurance requirements is crucial. The Federal Motor Carrier Safety Administration (FMCSA) mandates that you meet specific insurance requirements to operate interstate for-hire. These requirements are important as they ensure that trucking companies meet the financial responsibility to cover bodily injury and property damage in case of an accident.

This guide will help you navigate the FMCSA insurance requirements, focusing on new trucking companies operating across state lines for hire.

Understanding FMCSA Insurance Requirements for Motor Carriers

To activate your MC number, you must comply with FMCSA guidelines and meet their minimum insurance requirements. This includes filing specific forms such as the BMC-91 or BMC-91X. Confusing? Don’t worry, your insurance company will file those for you. However, you need to make sure you purchase enough Auto Liability insurance coverage to meet those requirements. Working with an experienced insurance agency that specializes in trucking and transportation like Trucking Insurance Services is a must!

BMC-91 and BMC-91X: The Basics

FMCSA insurance requirements include filing the BMC-91 or BMC-91X forms. These forms are submitted by your insurance company on your behalf to confirm that you hold sufficient Auto Liability insurance.

BMC-91: This form is required to prove that you have the minimum auto liability insurance to cover bodily injury and property damage as set forth by the FMCSA. For most motor carriers, including those operating box truck and hot shots, the FMCSA insurance requirements set the minimum liability limit at $750,000. However, for those operating smaller commercial vehicles under 10,001 pounds, such as cargo vans and sprinter vans, the minimum limit is $300,000.

BMC-91X: This form is needed if your trucking business operates across state lines for hire and is insured by multiple insurance companies instead of just one.

By submitting these forms, your insurance company proves to the FMCSA that your trucking company, whether it involves semi trucks, box trucks, or hot shots, meets the federal insurance requirements to operate.

MCS-90 Endorsement: Protecting the Public

In addition to the BMC-91 or BMC-91X, the FMCSA insurance requirements mandate the MCS-90 endorsement. The MCS-90 is an essential part of your commercial truck insurance policy. It is a guarantee to the FMCSA and the public that your trucking company will pay for any legal liability in the event of an accident, regardless of whether the insurance policy would normally cover it.

The MCS-90 is not an insurance policy itself. It is roof that the trucking company holds the necessary insurance to operate.

Insurance companies take their obligation set forth by the MCS-90 to pay for any legal liability seriously, and they expect you to do the same. That’s why commercial truck insurance policies with the MCS-90 endorsement require all owned or operated commercial equipment to be insured on the policy.

How Do I Find Insurance to Activate My MC Number?

Lucky for you, you’re at the right place. Trucking Insurance Services is a premier independent insurance agency that specializes in trucking and transportation insurance. Here are a few tips to find insurance that meets FMCSA requirements:

• Contact a knowledgeable insurance agent: Experience in commercial truck insurance is key. Your personal lines insurance agency likely won’t cut it.  They will help you determine the correct type of liability insurance and assist with requesting the necessary forms, including BMC-91, BMC-91X, and MCS-90.
• Discuss coverage options with your agent: Not every commercial auto policy covers trucking operations. Your insurance agent should offer you multiple insurance quotes that offer filings that meet FMCSA requirements.
• Purchase commercial truck insurance with filings: Once you have decided which insurance policy to purchase and paid the down payment, your insurance agent will request the BMC-91 or BMC-91X and the MCS-90 endorsement. Insurance companies usually issue the filing and endorsement within 24-48 hours.

Frequently Asked Questions

Does the MCS-90 replace my Auto Liability insurance?

No, the MCS-90 is not a replacement for primary auto liability insurance. It acts as a financial guarantee that the carrier has financial responsibility for any legal liability.

How do I check the status of my motor carrier number?

Visit the Licensing and Insurance page on the FMCSA’s website. Your MC number is updated once daily at 5am.

How long until my MC Number becomes active?

On average the FMCSA advises it will take 1 to 5 business days for your MC number to go active once you meet the FMCSA requirements. In our experience, it takes closer to 3 to 5 business days.

Why does my MC Number show $750,000 liability when I purchased $1,000,000 liability coverage?

The BMC-91 or BMC-91X filing is proof that your Auto Liability coverage meets the FMCSA insurance requirements. Your certificates of insurance sent to brokers for loads will reflect your Auto Liability limit.

Why does my MC Number require $1,000,000 instead of $750,000?

The FMCSA requires a minimum of $750,000 Auto Liability coverage for carriers transporting non-hazardous freight. However, trucking companies hauling hazardous freight require a minimum of $1,000,000 Auto Liability. This includes car and auto haulers.

Ready to Activate Your MC Number?

You are in the right place! Our experienced truck insurance agents are knowledgeable in commercial truck insurance and FMCSA insurance requirements. As a premier independent insurance agency, we have access to a vast network of insurance companies that offer BMC-91 or BMC-91X filings and the MCS-90 endorsement. Don’t settle for less. Call our office at 855-281-2924 or submit your information online and an insurance agent will call you to discuss your needs.