Like any other industry, trucking businesses are required to comply with state and federal insurance laws. The FMCSA oversees this sector and it’s a requirement for all motor carriers, broker authorities, and freight forwarders to have the necessary insurance in place before they can be issued operating authorities.
However, it’s important to note, different situations require different filings. Therefore, you must know what federal filings you need since each has a distinct purpose. The main factors that influence which truck insurance filings you need are the type of cargo you haul, what you drive, and your hauling radius.
In this article, we’ll discuss the importance of BMC-91 filings as well as the MCS-90, BMC-84, and BMC-34. Let’s get started.
Truck Insurance Filings
BMC-91 or BMC-91X
A BMC-91 filing acts as proof that you have the necessary liability coverage in place for transporting people and commodities across state lines. If you have coverage with multiple insurance carriers then you’ll need to file a BMC-91X.
It’s important to note, what you’re transporting will influence your limit. If you’re hauling freight then your liability limit will be between $750,000 to $5,000,000. Of course, this amount varies depending on the type of goods you’re hauling. Commercial vehicles with a GVWR less than 10,001 pounds may only be required to carry $300,000 if they’re hauling non-hazardous cargo. Ultimately, if there’s more risk you can expect a higher limit.
If your transport more than 15 people (including yourself) your coverage limit is $5,000,000. However, if your seating capacity is less than that you’ll only need $1,500,000.
This is not insurance; however, it must be attached to your liability policy. Essentially, this endorsement acts as proof of insurance confirming that you have liability coverage in place that’s equal to or greater than the minimum required amount.
BMC-84 or BMC-85
If you’re a freight broker or freight forwarder then these filings are important to maximize the financial security of the goods you’re transporting. A surety bond or trust fund agreement of $75,000 is required and can be fulfilled with either of these filings.
Insurance carriers can issue a BMC-84, which is a surety bond. The bonds have a value of $75,000 and are issued under the name of the policyholder. This bond is pretty similar to an insurance policy as you have to renew it every year to keep it active.
Your second option is a BMC-85. This filing requires you to open up a $75,000 trust in your name.
This is meant to protect motor carriers and shippers if you fail to meet your contractual agreement.
BMC-34 or BMC-83
These filings apply to household goods motor carriers and household goods freight forwarders. If this is you then you’ll need to provide proof of cargo liability insurance. The limit is $5,000 per truck and $10,000 per occurrence.
However, truck insurance experts often recommend higher cargo limits than that. If you’re wondering what cargo insurance costs on average then give us a call today and one of our agents can assist.
If it’s still unclear what federal insurance filings you need, reach out to one of our dedicated team members. We’ve been in the transportation industry for many years, so we understand what’s required of you.
If you’re interested in a truck insurance quote then feel free to give us a call or fill out our online quote form. An agent will contact multiple insurance providers to try and get you the best rates and coverage options.