Part 387 — Minimum Levels of Financial Responsibility
49 CFR Part 387: The federal minimum insurance requirements every motor carrier must carry.
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49 CFR Part 387 establishes the minimum levels of financial responsibility — in plain terms, the minimum liability insurance coverage — that motor carriers must maintain as a condition of operating in interstate commerce. These minimums vary based on the type of vehicle operated and the nature of the cargo carried, with higher requirements for hazardous materials.
The minimum liability coverage for most general freight carriers hauling non-hazardous commodities is $750,000. Carriers hauling certain hazardous materials face minimums of $1 million or $5 million depending on the specific materials. For-hire passenger carriers have their own minimum schedules based on vehicle size. Proof of coverage is filed with FMCSA through an MCS-90 endorsement, which is an insurance form that guarantees the policy meets federal minimums.
As of January 2026, freight brokers and freight forwarders must also maintain a $75,000 surety bond or trust fund in liquid assets under Part 387. The bond requirement for brokers was increased from $10,000 to $75,000 by MAP-21 in 2012, but the 2026 update added requirements around liquidity and trustee eligibility.
Key Provisions
- Requires minimum $750,000 liability coverage for general freight property carriers.
- Hazardous materials carriers face minimums of $1 million or $5 million depending on cargo type.
- Proof of coverage filed with FMCSA via the MCS-90 endorsement on the insurance policy.
- Brokers and freight forwarders must maintain a $75,000 surety bond or trust fund in liquid assets (updated 2026).
- Coverage must remain continuous — FMCSA can revoke operating authority if coverage lapses.
Why It Matters to Truck Owners
Financial responsibility under Part 387 is a hard requirement for maintaining operating authority. If your insurance lapses — even briefly — FMCSA can revoke your operating authority without prior notice. When buying a truck from a carrier, confirming their insurance status on FMCSA’s SAFER system is critical. A carrier operating without the required coverage represents a serious liability risk for any shipper, broker, or owner putting cargo on their truck.
Frequently Asked Questions
How much insurance does a trucking company need?
Under 49 CFR Part 387, minimum liability coverage is $750,000 for most general freight carriers. Carriers hauling certain hazardous materials face a $5 million minimum. Most carriers carry more than the minimum — $1 million is common for general freight operations.
What is the MCS-90 endorsement?
The MCS-90 is an endorsement added to a motor carrier’s insurance policy that certifies to FMCSA that the policy meets federal minimum financial responsibility requirements. It also contains a federal endorsement clause that makes the insurer liable to injured third parties up to the policy limit even if the carrier violated policy terms — a consumer protection provision.
What happens if a carrier’s insurance lapses?
If a carrier’s insurance coverage lapses below the required minimums, the insurance company must notify FMCSA, which can then revoke the carrier’s operating authority. FMCSA sends the carrier a notice, and if coverage is not reinstated within 30 days, operating authority is revoked.
Read the official legal text: 49 CFR Part 387 — eCFR.gov (official)
Related Federal Trucking Laws
- Part 365 — Rules Governing Applications for Operating Authority
- Part 367 — Standards for Registration with States (UCR)
- Part 371 — Brokers of Property
- Part 360 — Fees for Motor Carrier Registration and Insurance
- MAP-21 (2012)
This page is provided for informational purposes only and is not legal advice. Always verify current requirements at fmcsa.dot.gov or with a qualified transportation attorney.
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