Motor Carrier
A business that transports goods or passengers for hire, subject to DOT regulations and requiring specialized commercial auto coverage.
What It Is
A motor carrier is any business entity that transports property or passengers over public roads for compensation. Motor carriers are regulated by the Federal Motor Carrier Safety Administration (FMCSA) and must meet specific insurance requirements based on the type of cargo transported and the size of vehicles operated.
Motor carrier insurance requirements vary by cargo type. General freight carriers must maintain at least $750,000 in liability coverage, while carriers of hazardous materials must carry $1,000,000 to $5,000,000 depending on the specific materials. Passenger carriers must maintain between $1,500,000 and $5,000,000 based on seating capacity.
Motor carrier policies are typically written on the Truckers Coverage Form (CA 00 12) or the Motor Carrier Coverage Form (CA 00 20), which are specifically designed for for-hire trucking operations. These forms differ from the standard Business Auto Coverage Form in how they handle coverage for non-owned trailers, temporary substitute vehicles, and the MCS-90 endorsement.
Why It Matters for Brokers
Trucking is one of the most complex commercial auto classes to insure. Brokers must navigate federal and state regulations, specialized forms, unique rating methodologies, and cargo-specific requirements. An improperly structured motor carrier policy can result in FMCSA operating authority revocation, DOT penalties, and broker E&O claims. Brokers specializing in transportation accounts need deep expertise in this area.
Real-World Example
A motor carrier operating 28 trucks hauling general freight applies for insurance. Federal requirements mandate $750,000 minimum liability, but their largest customer contract requires $1,000,000. The broker places a Truckers Form with $1M CSL liability, $1M cargo coverage, and physical damage on all 28 power units (total insured value $4.2M). The MCS-90 endorsement is attached as required by FMCSA. Annual premium is $392,000 with a fleet safety discount based on their 89 CSA score.
Common Mistakes
- 1Using the standard Business Auto Coverage Form instead of the Truckers Form or Motor Carrier Form for a for-hire trucking operation.
- 2Failing to attach the MCS-90 endorsement when required by FMCSA, which can result in operating authority suspension.
- 3Not verifying that cargo insurance limits match contractual requirements from the carrier's shipping customers, not just federal minimums.
How brokerageaudit.com Handles This
brokerageaudit.com's Submission Intake identifies motor carrier accounts by DOT number and FMCSA lookup, automatically pulling operating authority status, fleet size, cargo types, and CSA scores. The Policy Checker validates that the correct form is used, MCS-90 is attached, and liability limits meet both federal minimums and contractual requirements stored in the account file.