Guide to Federal Motor Carrier Safety Administration (FMCSA) insurance requirements
Do you operate commercial vehicles to transport cargo or passengers? If so, you’re probably aware of the FMCSA. It oversees vehicle safety for companies like yours. One of the most important FMCSA requirements from a company owner’s perspective is that you have to carry adequate commercial auto insurance.
As a business owner or decision-maker, dealing with government agencies probably isn’t your favorite part of your job. But here’s some good news: We handle your FMCSA filing for insurance coverage. That’s one less item on your to-do list!
This article provides helpful information on FMCSA, explaining what the agency is, why it exists, and how we streamline your interaction with it regarding business insurance. Read on to learn more.
What is the FMCSA?
Let’s start with some helpful background on the FMCSA. It’s an agency within the U.S. Department of Transportation (DOT) that was created in 2000. Its objective is to make commercial vehicle operations safer, reducing crashes, injuries, and fatalities.
It does this in multiple ways. First, the agency develops and enforces safety regulations for entities transporting people or cargo. That includes setting standards for commercial vehicle operators—things like driver qualifications, vehicle maintenance, hours of service, and practices for transporting hazardous materials.
The FMCSA] monitors safety through a program called Compliance, Safety, Accountability (CSA). This involves performing roadside inspections, conducting crash investigations, and collecting safety data. In addition, the agency provides helpful educational resources (information on safe driving practices, for example) and invests in research and development of critical technology like collision avoidance systems.
If your business operates commercial vehicles, it’s important to understand your legal requirements under FMCSA regulations. One of those obligations is carrying adequate insurance. That’s why it’s crucial to understand your FMCSA insurance requirements. So is working with an insurer like biBerk that understands the agency and how to engage with it, such as handling your insurance-related FMCSA filings.
What are insurance filings?
It’s vital that whoever handles insurance coverage for your company understands what insurance filings are. Generally speaking, they’re notifications (typically to state or federal government entities) that you carry coverage.
For example, this might be a notification that you meet FMCSA’s liability insurance requirements. You’ll need to complete insurance filings if you have an MC (motor carrier) number. MC numbers are typically required if you cross state lines in for-hire transportation, meaning your business transports goods or passengers for pay. To obtain an MC number you'll need to apply to the FMCSA for operating authority.
There are minimum insurance limits that you also have to purchase:
- If a vehicle has Gross Vehicle Weight Rating over 10,001 lbs, the limit is $750,000.
- If you haul motor vehicles or large equipment or machinery, the limit is $1,000,000.
- If you haul hazardous materials, the limit is $5,000,000.
- For for-hire passenger transport, if you have a vehicle that accommodates 16 or more passengers, the limit is $5,000,000.
- If you have a vehicle that can carry at least 9 passengers the limit is $1,500,000.
If you don’t have the necessary insurance, your business can face fines and penalties. The FMCSA can also revoke your operating authority.
biBerk handles your FMCSA insurance filing.
We know how critical it is for companies that operate commercial vehicles to comply with FMCSA requirements. That’s why we submit your proof of insurance the next business day after the down payment is made. But be aware that if you miss an installment or your policy goes into cancellation, we submit a cancel notice to the FMCSA. Once the bill is paid or the issue is resolved, we reinstate the proof of insurance.
You have to engage with the agency in other ways, of course, like completing your FMCSA application requirements. But when it comes to the FMCSA and insurance, you should be reassured to know that biBerk is working on your behalf.
biBerk handles your FMCSA insurance filing.
We know how critical it is for companies that operate commercial vehicles to comply with FMCSA requirements. That’s why we submit your proof of insurance the next business day after the down payment is made. But be aware that if you miss an installment or your policy goes into cancellation, we submit a cancel notice to the FMCSA. Once the bill is paid or the issue is resolved, we reinstate the proof of insurance.
You have to engage with the agency in other ways, of course, like completing your FMCSA application requirements. But when it comes to the FMCSA and insurance, you should be reassured to know that biBerk is working on your behalf.
Insurance as a cornerstone of business success
Every business faces risks. As you’re considering your FMCSA requirements, it’s helpful to understand the full spectrum of coverages available. In addition to commercial auto insurance, biBerk offers other essential policies to address the risks small businesses face:
Workers’ Compensation insurance
This insurance, which states require for virtually all organizations with employees, helps protect your people and your company if a worker gets hurt or dies due to an incident on the job. It can cover medical costs, legal fees, and lost wages due to the injury.
General Liability insurance
Also known as commercial liability insurance, a general liability policy can cover damages and legal costs associated with injury claims from non-employees (clients, delivery people, etc.). Slip-and-fall accidents at your business location are an example. It can also provide payment for damage you cause to other people’s property. In addition, this policy provides financial protection in incidents of libel, slander, and copyright infringement. Plus, you can add endorsements to customize your policy, including cyber, hired and non-owned auto liability, employment-related practices liability, and employee benefits liability.
Professional Liability insurance
Also known as errors and omissions (E&O) insurance, this policy can protect you from the cost of damages and legal fees if someone claims an error you made caused financial harm to them or their business. Coverage includes mistakes (errors) and the failure to perform a service (omissions).
Business Owners Policy
Also known as property & liability insurance, a business owners policy (BOP) combines general liability insurance with coverage for your firm’s property. It protects the building you own, the space you lease, and any property needed to run your business. A BOP also covers business interruption, replacing lost income and paying other costs associated with getting your firm operational after suffering property damage. Like with a general liability policy, you can customize your BOP with add-ons, including cyber, hired and non-owned auto liability, employment-related practices liability, and employee benefits liability.
Cyber insurance
You can purchase this coverage as an add-on to a BOP, general liability, or professional liability policy. It helps cover costs related to computer system hacks or data security breaches where someone steals sensitive information and uses it to commit fraud or is likely to.
Umbrella insurance
Every liability insurance policy has a maximum value that it will cover in the event of an incident. Umbrella insurance adds another layer of protection, covering costs exceeding the limit of another biBerk liability policy up to its own limit.
Take action today to protect your business.