Why Should You Verify Your Carrier Has Insurance?

Besides the fact that having trucking insurance is law, verifying your carrier’s insurance certificate is an invaluable practice for guarding against chameleon carriers and identity theft.

The Law. The Federal Motor Carrier Safety Administration, known at the FMCSA, has set the standard for minimum insurance coverage for motor carriers, freight brokers and freight forwarders. See Example below taken from the FMCSA website:

FORM

DESCRIPTION

AUTHORITIES SUBJECT TO FILING

BMC-91 or BMC-91X Public liability insurance (bodily injury/property damage/environmental restoration)
  • Motor Contract Carrier and Common Carrier
  • Freight Forwarder (Note: Non-vehicle operating freight forwarders may seek waiver of this requirement.)
  • Freight:–$750,000 – $5,000,000, depending on commodities transported; $300,000 for non-hazardous freight moved only in vehicles weighing under 10,001 lbs.
  • Passengers:–$5,000,000; $1,500,000 for registrants operating only vehicles with seating capacity of 15 or fewer passengers.
BMC-34
  • Cargo insurance–$5,000 per vehicle
  • $10,000 per occurrence
  • Motor Common Carrier
  • Freight Forwarder
BMC-84 or BMC-85
  • Surety Bond–as of October 1, 2013, the amount is $75,000
  • Trust Fund Agreement–as of October 1, 2013, the amount is $75,000
Broker of Freight
BOC-3 Legal Process Agents All Authorities

So, naturally if you are a law abiding individual or corporation in the trucking industry, you have firstly insured yourself with the required insurance and secondly done your due diligence when employing a third-party to be sure they are also law abiding.

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