Federal law sets a floor for the liability insurance a motor carrier must carry. The floor depends on what is being hauled and how it is packaged, not on the size of the company. The schedule is in 49 CFR 387.9. This guide explains the three dollar figures, how the categories are chosen, and the paperwork a carrier must keep, with a note on what the rule does not cover. This is the liability floor that any trucking insurance policy has to meet, and it protects other people, not the freight or the truck itself.
What the Schedule Covers: Public Liability
Under 387.7(a), no motor carrier may operate a motor vehicle until it has obtained and has in effect the minimum levels of financial responsibility in 387.9. The rule defines the thing being insured as public liability: liability for bodily injury or property damage, which includes liability for environmental restoration. It is protection for other people hurt or damaged by the vehicle. It is not cargo insurance, and 387.9 does not set a minimum for loss or damage to the freight itself.
The Minimum Levels
| Type of carriage | What is transported (paraphrased) | Minimum |
|---|---|---|
| For-hire, interstate or foreign commerce, GVWR 10,001 lb or more | Property that is not hazardous | $750,000 |
| For-hire or private, in any quantity in interstate or foreign commerce (in bulk only in intrastate), GVWR 10,001 lb or more | Oil listed in 49 CFR 172.101; hazardous waste, hazardous materials or hazardous substances not covered by the $5,000,000 row | $1,000,000 |
| For-hire or private, GVWR 10,001 lb or more | Hazardous substances transported in bulk 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; bulk Division 6.1 Packing Group I, Hazard Zone A; bulk Division 2.1 or 2.2; or highway route controlled quantities of Class 7 | $5,000,000 |
| For-hire or private, interstate or foreign, GVWR under 10,001 lb | Bulk Division 1.1, 1.2 or 1.3; bulk Division 2.3 Hazard Zone A; bulk Division 6.1 PG I Hazard Zone A; or highway route controlled quantities of Class 7 | $5,000,000 |
The categories depend on terms the rule defines. In 387.5, "for-hire carriage" means transporting, for compensation, the goods or property of another. "In bulk" means transporting property as cargo in containment systems with capacities above 3,500 water gallons, with separate definitions for the explosives and Hazard Zone A gas categories. A vehicle under 10,001 pounds GVWR hauling non-hazardous property does not appear in the schedule.
How much insurance does a box truck need?
For a for-hire box truck rated 10,001 pounds or more that carries non-hazardous property, the federal minimum public liability is $750,000 (49 CFR 387.9). Higher amounts apply to the hazardous materials categories listed in the schedule, and shippers or brokers can require more by contract.
Which Row Applies: Three Examples
Three made-up carriers, matched to the rows above:
- A for-hire carrier hauling packaged non-hazardous goods interstate in a vehicle rated at 26,000 lb GVWR. This matches the first row: $750,000.
- A carrier hauling non-bulk packages of a hazardous material listed in 172.101, interstate, GVWR above 10,000 lb. This falls in the $1,000,000 row, unless the material is one of the $5,000,000 categories.
- A carrier hauling a Division 2.1 flammable gas in bulk in a cargo tank. The $5,000,000 row names bulk Division 2.1 and 2.2 materials, so the minimum is $5,000,000.
Figuring out which row applies is the whole job. A carrier unsure whether a load counts as bulk should check the definitions in 387.5, and the hazardous materials tables, before assuming the lower figure.
Paperwork a Carrier Must Keep
- Proof of coverage. Under 387.7(d), proof is kept at the carrier's principal place of business. It consists of an MCS-90 endorsement issued by an insurer, an MCS-82 surety bond, or an FMCSA decision authorizing self-insurance under 387.309, provided the carrier keeps a satisfactory safety rating.
- Public information. The proof is public information and must be produced on reasonable request by a member of the public (387.7(e)).
- Continuous coverage. Policies, bonds and endorsements remain in effect continuously until terminated. Cancellation requires 35 days' written notice from the insurer or the carrier to the other, counted from the date the notice is sent. A finite-term policy may be used to cover a lapse (387.7(b)).
- Exact name. Under 387.15, the endorsement and surety bond must be issued in the exact name of the motor carrier.
- Foreign carriers. Vehicles operated in the United States by carriers domiciled in a contiguous foreign country must carry a legible English copy of the proof (MCS-90 or MCS-82). A vehicle without it can be denied entry. Mexico-domiciled carriers operating only in border municipalities or commercial zones under a part 368 registration may use coverage bought for periods of 24 hours or longer. They must carry the registration, the MCS-90 and an insurer document showing effective and expiration dates.
Cargo insurance, which protects the freight rather than third parties, is not prescribed by 387.9, and State minimums for vehicles that stay within one state can differ. A broker's separate $75,000 financial security is covered in Freight Broker Bond and Trust Fund Rules, Explained.
Sources
Regulation text: eCFR, 7 October 2026. For an actual policy, a licensed insurance agent can say what applies to your operation.
