What are the trucking insurance requirements for owner-operators and fleets?

New owner-operators need primary liability insurance that meets FMCSA minimums, physical damage coverage for the truck and cargo insurance to protect freight in transit. Owner-operators leased to a motor carrier also need non-trucking liability or bobtail insurance to cover the truck when it’s not under dispatch. Those running under their own operating authority need to secure primary liability directly instead of relying on a carrier’s policy. 

The exact coverage mix depends on the lease agreement or operating authority in place. Owner-operators leased to a carrier typically get primary liability and cargo coverage through the carrier’s policy, then purchase bobtail insurance and physical damage coverage on their own. Owner-operators running under their own authority need a complete policy that includes primary liability, cargo, physical damage and general liability. Workers’ compensation coverage may also apply once the owner-operator hires drivers or other employees. 

The minimum insurance required for a semi-truck depends on the cargo it hauls, under Federal Motor Carrier Safety Administration (FMCSA) regulations. Requirements scale with the type of cargo and the level of risk it presents: 

• General freight (vehicles over 10,000 pounds) — subject to a baseline primary liability minimum 
• Oil — subject to a higher primary liability minimum, reflecting the greater risk of spills and environmental damage 
• Other hazardous materials in bulk — subject to the highest primary liability minimum, given the potential severity of an incident involving these materials 
  
  

These federal minimums are a floor, not what most shippers or brokers actually require. Many freight contracts set their own liability requirements regardless of cargo type, and some add cargo insurance limits based on freight value. Carriers with a history of safety violations or claims may also face higher requirements from insurers or brokers looking to offset increased risk. 

Fleets and owner-operators should also budget for physical damage coverage, since FMCSA minimums only address liability for damage or injury to others, not damage to the truck itself. Non-trucking liability coverage is another common addition, covering situations where a driver operates the vehicle for personal use outside dispatched routes, since FMCSA and standard liability policies typically only apply while a truck is under dispatch.

Truck insurance includes several distinct coverage types, each addressing a different risk: 

• Primary liability covers damage or injury to others in an at-fault accident 
• Cargo insurance covers freight being hauled 
• Physical damage coverage (collision and comprehensive) covers the truck itself 
• Bobtail insurance and non-trucking liability cover the truck when it's not under dispatch 
• General liability covers risks unrelated to driving, such as an injury at a loading dock 
• Trailer interchange coverage protects trailers a carrier doesn't own but is temporarily using 
• Occupational accident insurance provides injury benefits for owner-operators who don't qualify for workers' compensation 
  
  

The right combination depends on whether a truck operates under a carrier's authority or independently, and what cargo it hauls. 

Starting a trucking company requires several types of coverage from day one: 

• Primary liability insurance that meets Federal Motor Carrier Safety Administration (FMCSA) minimums for the cargo hauled 
• Cargo insurance to cover freight in transit 
• Physical damage coverage for company trucks 
• General liability coverage for risks outside of driving 
  
  

New carriers filing for their own operating authority need to file proof of insurance with the FMCSA before receiving authority to operate. Lenders financing trucks or trailers typically require physical damage coverage as a condition of the loan. Companies that lease trucks from owner-operators instead of hiring drivers directly should confirm how liability, cargo and non-trucking liability coverage are divided between the company's policy and each owner-operator's coverage.