Commercial fleet insurance: federal minimums, contract terms and common gaps
A fleet changes every month: new trucks, new drivers, new lanes and new freight. Each one can fall outside the policy you bought. Here's what trucking companies and commercial fleets typically carry, and the gaps we see most.
Insurance commercial fleets typically carry
What's typical and what's commonly required. Your trade, state, contracts and insurer decide the details.
| Coverage | What it covers | Often required by | Typical limits |
|---|---|---|---|
| Auto liability | Injury and damage you cause to others with your vehicles. | State law, and federal law (FMCSA) for interstate for-hire carriers | Federal minimum of $750,000 for most general freight. Shippers and freight brokers often ask for $1M. |
| Physical damage | Damage to your own trucks and trailers from collision, theft, fire or weather. | Lenders and leasing companies | The value of each unit. |
| Motor truck cargo | Freight you're hauling, if it's lost or damaged. | Freight brokers and shippers | $100,000 is common. High-value freight needs more. |
| Non-trucking liability | Owner-operators leased to a carrier, when driving off dispatch. | Carriers that lease owner-operators | Often $1M. |
| Trailer interchange | Trailers you pull that belong to someone else, under an interchange agreement. | Interchange agreements | The value of the trailers you pull. |
| General liability | Injuries and damage at docks, yards and customer sites that don't involve driving. | Shippers, warehouses and some freight brokers | $1M per occurrence. |
| Workers' comp or occupational accident | Injuries to employee drivers, or to contracted owner-operators under occupational accident coverage. | State law for employees, and carriers for owner-operators | Set by state law or by contract. |
Federal minimums and contract requirements
Federal minimums (FMCSA)
For interstate for-hire carriers: $750,000 for general freight in vehicles over 10,000 lbs, $1M for oil, and up to $5M for certain hazardous materials. Passenger carriers need $1.5M or $5M depending on seats.
The MCS-90 endorsement
A federal endorsement on the auto policy that guarantees the public is compensated up to the minimum, even if the policy wouldn't otherwise pay.
Freight broker and shipper contracts
These often ask for $1M auto liability and $100,000 cargo, with the broker or shipper named on the certificate.
Scheduled units and drivers
Many fleet policies list each vehicle and driver. What isn't listed may not be covered, or only for a short reporting window.
Where fleet coverage breaks
The policy was right when it was bought. These are the changes that most often leave a gap.
A new truck isn't on the policy
Newly bought units are often covered only briefly unless you report them. After that, there may be no coverage.
A new driver was never added
Drivers who aren't listed, or who were excluded, can void coverage for that driver's accident.
Your routes or radius changed
Moving from local to long-haul, or into new states, changes the risk the policy was priced and written for.
You're hauling freight the cargo policy excludes
Cargo forms often exclude or limit certain goods, such as electronics, alcohol or refrigerated loads.
Owner-operators without non-trucking liability
Leased drivers who are off dispatch can fall between their coverage and yours.
A five-truck carrier takes on a new customer shipping consumer electronics. Its cargo policy excludes electronics. When a trailer is stolen at a truck stop, the $90,000 cargo claim is denied, and the carrier owes the shipper for the load.
Check your coverage for gaps like this →Frequently asked questions
What insurance does a trucking company need?
Most carry auto liability, physical damage and motor truck cargo. Depending on the operation, they may also need general liability, non-trucking liability, trailer interchange and workers' comp or occupational accident. Federal rules, your contracts and your lenders set the minimums.
What are the FMCSA insurance minimums?
For interstate for-hire carriers: $750,000 for general freight in vehicles over 10,000 lbs, $1M for oil, and up to $5M for certain hazardous materials. Passenger carriers need $1.5M for up to 15 passengers and $5M for 16 or more.
Is a newly bought truck covered automatically?
Sometimes, but usually only for a short window, and only if you report it in time. Check your policy's newly acquired auto terms and add new units as soon as you get them.
What is non-trucking liability?
It covers an owner-operator leased to a motor carrier when they're driving for non-business reasons, off dispatch. The carrier's policy typically covers them only while they're under dispatch.
Why would a cargo claim be denied?
Common reasons include excluded commodities, unattended-vehicle conditions, refrigeration breakdown exclusions and loads above the cargo limit.
This page is general information about typical coverage and common requirements. It is not insurance or legal advice, and it is not a recommendation to buy any policy. Requirements vary by state, contract and insurer.