What does 49 CFR 387.25 (Purpose and scope) require?

Short answer

49 CFR 387.25 requires for-hire motor carriers of passengers to maintain minimum levels of financial responsibility. The purpose is to create incentives for safe vehicle operation and ensure adequate financial responsibility.

The rule says

"This subpart prescribes the minimum levels of financial responsibility required to be maintained by for-hire motor carriers of passengers operating motor vehicles in interstate or foreign commerce." (49 CFR 387.25)

In plain English

This rule is about making sure bus companies and other passenger carriers have enough insurance or financial resources to cover potential accidents or injuries. It's meant to encourage them to operate safely and be prepared for any financial consequences. In practice, this means carriers need to have a certain level of financial responsibility, which can be demonstrated through insurance or other means.

What to do

• Review your company's financial responsibility coverage to ensure it meets the minimum requirements.
• Verify that your coverage is adequate for the type and scope of your operations.
• Maintain up-to-date records of your financial responsibility coverage.