What does 49 CFR 387.301 (Surety bond, certificate of insurance, or other securities) require?

Short answer

49 CFR 387.301 requires for-hire motor carriers and foreign motor carriers to file surety bonds, certificates of insurance, or other securities with the FMCSA to ensure public liability and cargo insurance coverage. The regulation sets minimum security limits and requires continuous compliance.

The rule says

"No for-hire motor carrier or foreign (Mexican) motor private carrier or foreign motor carrier transporting exempt commodities subject to Subtitle IV, part B, chapter 135 of title 49, United States Code, shall engage in interstate or foreign commerce, and no certificate shall be issued to such a carrier or remain in force unless and until there shall have been filed with and accepted by the FMCSA surety bonds, certificates of insurance, proof of qualifications as self-insurer, or other securities or agreements, in the amounts prescribed in 387.303." (49 CFR 387.301(a)(1))

In plain English

This regulation is about ensuring that motor carriers have adequate financial responsibility to cover potential losses or damages. The FMCSA requires carriers to file surety bonds or certificates of insurance to demonstrate their ability to pay for bodily injuries, property damage, or environmental restoration. Carriers must maintain these securities at all times to remain compliant and avoid penalties. In practice, this means that carriers need to carefully review their insurance coverage and surety bonds to ensure they meet the minimum requirements, and that they maintain accurate records to demonstrate compliance during audits or inspections.

What to do

• Review your current insurance coverage and surety bonds to ensure they meet the minimum requirements prescribed in 49 CFR 387.303.
• File the necessary surety bonds, certificates of insurance, or other securities with the FMCSA.
• Maintain accurate records of your financial responsibility coverage and ensure continuous compliance.
• Verify that your insurance provider or surety company is authorized to issue bonds or policies in the states where you operate.