What cargo insurance is required for household goods carriers under 49 CFR 387.303?

Short answer

Household goods carriers are required to have cargo insurance of at least $5,000 for loss or damage to household goods carried on any one motor vehicle and $10,000 for loss or damage to or aggregate of losses or damages of or to household goods occurring at any one time and place.

The rule says

"Security required to compensate individual shippers for loss or damage to property belonging to them and coming into the possession of household goods motor carriers in connection with their transportation service; (1) For loss of or damage to household goods carried on any one motor vehicle $5,000, (2) For loss of or damage to or aggregate of losses or damages of or to household goods occurring at any one time and place $10,000." (49 CFR 387.303(c))

In plain English

This means that household goods carriers must have insurance to cover losses or damages to shipments, with a minimum of $5,000 per vehicle and $10,000 per occurrence. This is to protect individual shippers in case their goods are lost, damaged, or destroyed during transportation. Carriers must maintain this insurance to ensure they can compensate shippers for any losses.

What to do

• Obtain and maintain cargo liability insurance with at least $5,000 per vehicle and $10,000 aggregate limit per occurrence.
• Ensure the insurance policy covers loss or damage to household goods carried on any one motor vehicle.
• Review and understand the terms and conditions of the insurance policy to ensure compliance with regulatory requirements.
• Maintain records of the insurance policy and provide proof of insurance as required by regulatory authorities.