What does 49 CFR 387.9 (Financial responsibility, minimum levels) require?

Short answer

49 CFR 387.9 requires minimum levels of financial responsibility for motor carriers, with varying limits based on the type of carriage and commodities transported. The minimum levels range from $750,000 to $5,000,000.

The rule says

"The minimum levels of financial responsibility referred to in 387.7 are hereby prescribed as follows: Table 1 to 387.9Schedule of LimitsPublic Liability Type of carriage Commodity transported" (49 CFR 387.9)

"For-hire (In interstate or foreign commerce, with a gross vehicle weight rating of 10,001 or more pounds) Property (nonhazardous) $750,000" (49 CFR 387.9)

"For-hire and Private (In interstate, foreign, or intrastate commerce, with a gross vehicle weight rating of 10,001 or more pounds) Hazardous substances, as defined in 49 CFR 171.8, transported in bulk in cargo tanks, portable tanks, or hopper-type vehicles with capacities in bulk; in bulk Division 1.1, 1.2 or 1.3 materials; in bulk Division 2.3, Hazard Zone A material; in bulk Division 6.1, Packing Group I, Hazard Zone A material; in bulk Division 2.1 or 2.2 material; or highway route controlled quantities of a Class 7 material, as defined in 49 CFR 173.403 5,000,000" (49 CFR 387.9)

In plain English

This regulation sets the minimum insurance requirements for trucking companies, depending on what they haul and where. For example, a company hauling non-hazardous property in interstate commerce needs at least $750,000 in coverage, while a company hauling hazardous materials in bulk needs $5,000,000. These minimums ensure that trucking companies can cover damages in case of an accident.

What to do

• Review your company's insurance coverage to ensure it meets the minimum requirements.
• Check the type of commodities your company transports to determine the applicable minimum level of financial responsibility.
• Verify that your insurance policy or surety bond meets the requirements outlined in 49 CFR 387.9.
• Maintain proof of financial responsibility at your company's principal place of business, as required by 49 CFR 387.7.