What are the minimum liability insurance amounts under 49 CFR 387.9?

Short answer

The minimum liability insurance amounts under 49 CFR 387.9 are $750,000 for non-hazardous property, $1,000,000 for oil and certain hazardous materials, and $5,000,000 for hazardous substances transported in bulk.

The rule says

"Table 1 to 387.9Schedule of LimitsPublic Liability Type of carriage Commodity transported January 1, 1985 (1) 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)

"For-hire and Private (In interstate or foreign commerce, in any quantity; or in intrastate commerce, in bulk only; with a gross vehicle weight rating of 10,001 or more pounds) Oil listed in 49 CFR 172.101; hazardous waste, hazardous materials, or hazardous substances defined in 49 CFR 171.8 and listed in 49 CFR 172.101, but not mentioned in entry (2) or (4) of this table 1,000,000" (49 CFR 387.9)

In plain English

These minimum liability insurance amounts are required for motor carriers to operate in interstate or foreign commerce, and are intended to protect the public in the event of an accident. The amounts vary depending on the type of commodity being transported and the weight rating of the vehicle. For example, carriers transporting hazardous substances in bulk must have at least $5,000,000 in liability insurance, while those transporting non-hazardous property must have at least $750,000. Carriers must maintain these minimum levels of financial responsibility at all times, and must provide proof of insurance to the FMCSA.

What to do

• Verify the type of commodity being transported and the weight rating of the vehicle to determine the required minimum liability insurance amount.
• Obtain and maintain the required minimum level of liability insurance coverage.
• Ensure that the insurance policy is issued by a reputable insurer and meets the requirements of 49 CFR 387.9.
• Maintain proof of insurance and provide it to the FMCSA as required.