Liability Insurance
Liability insurance in trucking covers bodily injury and property damage caused by the carrier's vehicle to third parties. FMCSA requires a minimum of $750,000 in liability coverage for general freight carriers in interstate commerce.
In Depth
Primary liability insurance is the largest single insurance expense for most owner-operators, typically running $8,000–$15,000/year for a single truck with good safety record. New authorities face higher rates — often $12,000–$20,000/year — due to lack of safety history.
The $750,000 FMCSA minimum is a floor, not a ceiling. Many shippers and brokers require $1,000,000 in liability coverage. Carriers hauling hazardous materials must carry $1,000,000–$5,000,000 depending on hazmat category.
Liability insurance is filed with FMCSA via Form MCS-90 endorsement. If insurance lapses, FMCSA automatically revokes operating authority — making continuous coverage essential.
Usage Example
Example: 'My primary liability runs $11,200/year — that's $0.09/mile at 120,000 miles. It's one of my biggest fixed costs.'
Related Calculators
Related Terms
Primary Insurance
Primary liability insurance is the foundational commercial auto liability policy required by FMCSA for carriers operating in interstate commerce. It covers bodily injury and property damage when the truck is under dispatch and actively engaged in commerce.
Bobtail Insurance
Bobtail insurance (also called non-trucking liability) covers a semi-truck when it is being driven without a trailer and outside of active dispatch — such as driving home after a delivery or repositioning to a pickup. It fills the gap that primary insurance does not cover.
Cargo Insurance
Cargo insurance (also called motor truck cargo insurance) covers the freight a carrier is transporting in the event of theft, damage, or loss during transit. FMCSA requires a minimum of $5,000–$10,000 cargo coverage, though brokers commonly require $100,000.
Operating Authority
Operating authority is the legal permission granted by FMCSA that allows a carrier to transport regulated freight for hire in interstate commerce. It is represented by the MC number and requires insurance, a BOC-3 filing, and a waiting period before it becomes active.
Frequently Asked Questions
How much does trucking liability insurance cost?
Established carriers: $8,000–$12,000/year per truck. New authorities: $12,000–$20,000/year. Rates depend on safety record, operating region, and experience.