Trucking company insurance: coverage, requirements and costs

A trucking company starts with primary auto liability, because a loaded tractor-trailer that hurts someone produces the largest claims in commercial insurance, and federal law sets a floor before you may operate. Around that sit cargo coverage for the freight, physical damage for the equipment, workers' compensation or occupational accident for drivers, general liability for the yard, and an umbrella above the whole stack. Trucking sits in NAICS 484 (484110 local general freight, 484121 and 484122 long-distance truckload and less-than-truckload, 484220 and 484230 specialized freight) in the 2022 Census Bureau code list.

Why trucking companies need business insurance

Traffic accidents are the main hazard in the Bureau of Labor Statistics' description of the driver's job. BLS reported about 2.2 million heavy and tractor-trailer drivers in 2025 and says the occupation has one of the highest injury and illness rates of any job (BLS Occupational Outlook Handbook). The Insurance Institute for Highway Safety counted 5,340 deaths in large-truck crashes in 2024. That is why jury awards against carriers drive the market: a bad crash can exceed a $1 million primary limit, and plaintiffs' lawyers look for the carrier's hiring, training and maintenance records.

AM Best reported a commercial auto underwriting loss of about $4.9 billion for 2024, the 14th straight year of losses, and a smaller loss of about $1.9 billion for 2025. Underwriters have answered with higher rates, higher attachment points for excess layers, and more questions about cameras and safety scores. The American Transportation Research Institute reported in July 2026 that 2025 truck repair and maintenance costs rose 8.6%, which also feeds physical damage pricing.

Core coverages

• Primary auto liability. Written on the ISO motor carrier coverage form (CA 00 20) or a carrier's own form. It pays bodily injury and property damage to others. See trucking insurance: the coverages motor carriers need.
• Motor truck cargo. Pays for the shipper's freight if lost or damaged, subject to named perils, reefer breakdown conditions, theft exclusions for unattended trucks, and per-vehicle and per-load limits. See motor truck cargo insurance: how it works and where it stops.
• Physical damage. Covers your tractors and trailers for collision and comprehensive, with actual cash value as the typical valuation basis; the ISO form pays the lesser of ACV or repair cost. See physical damage coverage for trucks and trailers. Trailer interchange covers trailers you pull under a written agreement.
• General liability. For the terminal, the dock and the yard, not the road. See general liability insurance: what it covers and what it does not.
• Workers' compensation. Required by state law once you have employees; see workers' comp requirements by state: who must carry it. Drivers have heavy lifting, slip and fall from the cab, and loading injuries.
• Non-trucking liability and bobtail. For owner-operators leased to a carrier, covers the truck when it is not under dispatch. See non-trucking liability and bobtail insurance: what each covers and owner-operator insurance: leased vs independent authority. The lease must say who provides it (49 CFR 376.12(j)).

Coverage you may be required to carry

Federal minimums. Under 49 CFR 387.9 (Table 1), the schedule of limits has not changed since January 1, 1985:

Passenger carriers are covered by 387.33. These are floors. Shippers and brokers routinely require $1 million, and many require more.

Proof. Under 49 CFR 387.7, you prove the coverage with Form MCS-90 (an endorsement attached to the auto liability policy), Form MCS-82 (a surety bond), or FMCSA authorization to self-insure. The MCS-90 is a promise to the public that the insurer will pay a judgment even when the policy would not respond, for example for an unlisted vehicle. The insurer can seek reimbursement from you. It is not coverage for you, and courts have treated it as a surety-like obligation. See The MCS-90 endorsement explained: what it guarantees and what it doesn't and FMCSA insurance requirements and filings for motor carriers. Section 387.7 provides for continuous coverage and 35 days' written notice of cancellation.

Filings. A for-hire carrier that needs operating authority has its insurer file Form BMC-91 or BMC-91X with FMCSA, and cancellation is not effective until 30 days after a notice on Form BMC-35 is filed (49 CFR 387.313). Freight brokers, a different business, must hold a $75,000 bond or trust (387.307, Form BMC-84 or BMC-85). Check your own state's rules for intrastate hauling; a state may impose its own minimum or adopt the federal one.

Contracts. Broker-carrier agreements typically require auto liability, cargo, workers' comp, general liability, a waiver of subrogation and the shipper named as certificate holder; see contract insurance requirements checker. The Supreme Court ruled 9-0 on May 14, 2026 in Montgomery v. Caribe Transport II that broker negligent-selection claims are not preempted by federal law, which pushes brokers to demand more of their carriers' insurance.

Common claims and how to prevent them

• Collisions. Camera systems, driver coaching and following-distance alerts. See telematics and dashcams in commercial auto insurance and building a fleet safety program that insurers notice.
• Driver quality. MVRs at hire and annually (49 CFR 391.23 and 391.25), a written hiring standard, and drug and alcohol testing including post-accident testing (49 CFR 382.303). See Driver selection, MVRs and your commercial auto premium.
• Cargo theft. CargoNet recorded 3,594 cargo theft events in 2025. Avoid unattended loads in high-risk lots, use trailer locks and GPS, and screen brokers and double-brokered loads.
• Reefer breakdown. Keep maintenance logs and temperature records, since a cargo policy often requires a reefer breakdown endorsement.
• Equipment fire and theft. Pre-trip inspections and a preventive maintenance schedule.

What drives the cost

• Liability and physical damage are rated per power unit, using radius of operation (local, intermediate, long haul), garaging location, commodity hauled, driver age and experience, MVRs, claims history and the value of the truck. A fleet is generally five or more self-propelled autos under the Commercial Automobile Insurance Plan manual (3/1/2026).
• Cargo is rated on the commodity, maximum load value, and theft exposure of your routes.
• Federal safety data. FMCSA's Safety Measurement System sets alert thresholds, such as 65% for most BASICs and 80% for the more severe ones for property carriers (88 FR 9954). See How CSA scores and safety ratings affect trucking insurance.
• Workers' comp is rated on payroll by class code; trucking classes are among the more expensive, and some states count owner-operators as employees. See why commercial auto insurance keeps getting more expensive.

Specialized coverages to consider

• Umbrella and excess liability over the primary limit; see commercial umbrella insurance and How much umbrella coverage do I need?.
• Occupational accident for independent contractors who are not employees.
• Pollution liability for fuel and cargo spills beyond the auto form; see pollution liability insurance and the pollution exclusion.
• Hired and non-owned auto if office staff use their cars; see Hired and non-owned auto (HNOA) coverage: what it covers and who needs it.
• Cyber and crime for fraudulent wire and fictitious-pickup schemes.
• Contingent auto liability for brokers and shippers who hire carriers.

How to buy

Trucking is a specialty market. An independent agent or broker with a trucking book can approach standard and excess-and-surplus carriers and programs; a new authority with no safety history often must start in the surplus market. Have ready: MC and USDOT numbers, a power-unit schedule with VINs and values, driver list with license numbers and MVRs, loss runs for five years, radius and commodity, your cargo contracts, your FMCSA safety scores and inspection history, and your maintenance and safety program. See how to prepare an insurance submission underwriters will read.

Key takeaways

• 49 CFR 387.9 sets floors of $750,000, $1 million and $5 million; most contracts ask for more.
• MCS-90 protects the public, not you; the insurer can seek reimbursement.
• BMC-91 filings and 30-day cancellation notice apply to carriers with operating authority; 35 days' notice applies under 387.7.
• Cargo, physical damage and non-trucking cover are separate and each has gaps.
• Driver hiring, cameras and your FMCSA scores influence price and availability more than anything else.