Trucking insurance coverages: every line, and who requires it
A one-truck trucking program is built from about eight coverage lines, but only one, primary liability, is required by federal law for a for-hire interstate carrier hauling general freight. The rest are required by someone else (a broker, a shipper, a lender, the carrier you lease onto) or are a choice about risk you would otherwise carry yourself.
Contents
The short version
- Law: primary liability, at least $750,000 for for-hire general freight in a truck rated 10,001 lb or more, filed with FMCSA by your insurer.
- Contracts: cargo, general liability and higher liability limits usually come from broker and shipper agreements.
- Money owed on the truck: the lender or lessor normally requires physical damage.
- Leased onto a carrier: the carrier covers liability under dispatch; you insure the truck, your off-dispatch driving and often your own injuries.
Who can require a coverage?
Before looking at the lines one by one, it helps to know that "required" means different things depending on who asks. For a single truck, there are five possible sources of a requirement, and they do not carry the same weight.
- Federal law. Under 49 CFR 387.7, a for-hire motor carrier in interstate commerce may not operate until it has the minimum financial responsibility set in 387.9. FMCSA will not grant operating authority until proof is on file.
- Your state. States set their own minimums for intrastate trucks. Texas, for example, requires $500,000 for trucks over 26,000 lb registered with TxDMV.
- Brokers and shippers. Their carrier agreements can require cargo coverage, general liability and liability limits above the federal minimum. These are contract terms, not law, and they vary: read the agreement before you sign it.
- Your lender or lessor. Whoever finances the truck wants the truck itself insured.
- The carrier you lease onto. Under 49 CFR 376.12(j)(1), your lease must say who provides insurance other than the carrier's public liability, "such as bobtail insurance", and how much the carrier will charge back if it buys it for you.
The legal side (USDOT and MC numbers, filing forms, state tables) is covered in detail in our guide to motor carrier insurance requirements. This page focuses on what each coverage does.
What does each trucking coverage pay for?
Each section below gives the essentials and links to the page that covers the line in depth.
Primary liability
Primary liability pays for injuries and property damage you cause to other people while operating the truck. It does not pay for your truck, your cargo or your own injuries. Under the federal schedule in 49 CFR 387.9, the floor is $750,000 for for-hire carriers of non-hazardous property in vehicles rated 10,001 lb or more, $1,000,000 for oil and most hazardous materials, and $5,000,000 for the highest-hazard loads. Your insurer files proof with FMCSA (Form BMC-91 or BMC-91X) and attaches the MCS-90 endorsement. Limits, combined single limits and excess layers are explained in trucking liability insurance.
Motor truck cargo
Cargo insurance pays for loss of or damage to the freight you haul, for example after a crash, fire or theft. Federal law requires it only for household goods carriers ($5,000 per vehicle and $10,000 per occurrence, filed on Form BMC-34 or BMC-83). For general freight, the requirement comes from broker and shipper contracts, which also set the limit per load. Exclusions are where cargo policies differ most: see motor truck cargo insurance.
Physical damage
Physical damage covers your own truck: collision (hitting something or overturning) and comprehensive (theft, fire, weather, vandalism and other non-collision causes). No federal or state rule requires it. Lenders and lessors do, and a truck you own outright can go without it if you can afford to replace it. Being leased onto a carrier does not change this: Progressive notes that carriers that provide primary liability for owner-operators "don't include" physical damage on your truck. Details on stated value and deductibles are in semi truck physical damage insurance.
Bobtail and non-trucking liability
These cover your liability when you drive a leased-on truck outside the carrier's dispatch. Insurers do not use the terms the same way. Progressive describes bobtail as coverage for driving without a trailer "for a business purpose" and non-trucking liability as coverage for non-business use. HUB International describes bobtail as applying when the tractor runs without a trailer "and not under dispatch". Read the policy wording, not the name. They matter mostly to leased owner-operators, and the lease must say who pays for them: see bobtail insurance.
General liability
Trucking general liability covers injuries and damage caused by your business activities other than driving: a customer hurt at your yard, damage while unloading at a dock, a product delivered to the wrong place. It does not replace auto liability for road accidents. Shippers and facilities ask for it in contracts. See trucking general liability insurance.
Occupational accident
As an independent contractor, you are usually outside workers' compensation. Occupational accident insurance, in HUB International's description, "provides the injury benefits that workers' compensation would provide for an employed driver": medical expenses, disability income and accidental death and dismemberment. A carrier can make it a condition of your lease, so check yours. See occupational accident insurance.
Trailer interchange and non-owned trailers
If you pull someone else's trailer under a written trailer interchange agreement, your own physical damage coverage does not follow it: Progressive says its physical damage "cannot be applied to non-owned trailers". Trailer interchange coverage pays for damage to that non-owned trailer from collision, fire, theft, explosion or vandalism, and Progressive requires the written agreement. Owned trailers, interchange and non-owned trailer options are compared in tractor-trailer insurance.
Excess and umbrella liability
Excess or umbrella liability sits above your primary limit and pays once the primary limit is used up. A one-truck operation usually adds it only when a contract asks for a total limit higher than the primary policy carries. Triple-I warns not to rely on a personal umbrella for claims from business use of a vehicle. This layer is discussed with liability limits in our liability guide.
Trucking coverages at a glance
The table separates who imposes each coverage. "Contract" means the requirement exists only if an agreement you sign says so.
| Coverage | Pays for | Required by | Own authority | Leased onto a carrier |
|---|---|---|---|---|
| Primary liability | Injury and damage to others from operating the truck | Federal law (387.9) for for-hire interstate; state law intrastate | You buy it; insurer files with FMCSA | Carrier's policy, while under its dispatch |
| Motor truck cargo | Freight you haul | Law for household goods only; otherwise broker and shipper contracts | Usually needed to get loads | Depends on the lease; check cargo deductions (376.12(j)(3)) |
| Physical damage | Your truck (collision, comprehensive) | Lender or lessor | Your choice if paid off | Not provided by the carrier |
| Bobtail / non-trucking liability | Your liability off dispatch | The lease (376.12(j)(1)) and carrier policy | Generally not relevant without a lease; confirm your liability policy's terms | Usually required |
| General liability | Non-driving business accidents | Shipper or facility contracts | If a contract asks | If a contract or the lease asks |
| Occupational accident | Your own injuries on the job | Carrier lease terms; no federal rule | Your choice | Required if the lease says so |
| Trailer interchange | A non-owned trailer under an interchange agreement | The interchange agreement | If you sign one | If you sign one |
| Excess / umbrella | Liability above the primary limit | Contracts asking for higher total limits | If a contract asks | Usually the carrier's decision |
The "leased onto a carrier" column describes the usual arrangement, not a rule. Your lease is what decides who buys what and what is charged back to you. Read it line by line; our page on leased owner-operator insurance lists what 49 CFR 376.12 requires it to say.
In what order should a one-truck operation buy coverage?
With one truck, the budget rarely covers everything at once. The order below puts legal requirements first, then what you need to get paid work, then what protects your own balance sheet. It is a way to think about priorities, not advice for your specific operation.
With your own authority
- Primary liability, filed. Without it in force and on file with FMCSA, your authority is not granted, or is revoked later. Check the filing names match your application exactly; FMCSA says a mismatch delays authority.
- Cargo at the limit your brokers ask for. Broker agreements commonly ask for a cargo certificate before tendering loads. Ask two or three of the brokers you plan to work with what limit and exclusions they accept before you bind.
- Physical damage. Mandatory if you still owe on the truck. If it is paid off, compare the premium and deductible with the cost of replacing the truck from savings.
- Trailer interchange or non-owned trailer coverage, only if you pull trailers you do not own.
- General liability and higher liability limits, when a specific contract asks for them.
- Occupational accident or other personal injury cover. Not required by law for you as an owner-operator, but without it your own injuries fall on your health coverage and savings.
Leased onto a carrier
- Read the lease insurance clause. It must name who provides each coverage beyond public liability and the amount of any charge-back.
- Bobtail or non-trucking liability, in the form the carrier requires.
- Physical damage on your truck. The carrier's policy does not cover it.
- Occupational accident, if the lease requires it, or by choice.
- Cargo, only if the lease makes you responsible for cargo claims or deductibles.
The coverage planner on our home page asks how you run, what you drive and what you haul, then lists only the lines that apply and the rule or contract behind each one.
A worked example: one dry van owner-operator
This is an illustration, not a real case or a quote. Imagine an owner-operator about to run under their own new authority, interstate, with a financed tractor and their own dry van trailer, hauling general freight.
- Liability: at least $750,000 by law. If the brokers they plan to work with ask for $1,000,000 in their carrier agreements, that becomes the practical minimum.
- Cargo: needed to book broker loads, at whatever per-load limit the agreements state.
- Physical damage: on the tractor (the lender requires it) and on the owned trailer, at a value that reflects their real condition.
- Not needed for now: bobtail or non-trucking liability (no lease), trailer interchange (they pull their own trailer).
- To decide: general liability (only if a shipper asks) and occupational accident (personal choice).
If the same driver later leased onto a carrier instead, liability would move to the carrier's policy under dispatch, and bobtail or non-trucking liability plus occupational accident would likely be added at the carrier's request.
Where the cost goes
Liability is usually the heaviest line. The American Transportation Research Institute reported that liability premiums rose 18.6% from 2021 to 2024 to 10.2 cents per mile across the carriers it surveyed (ATRI, May 2026); that figure is not specific to one-truck operations. Physical damage costs depend mostly on the truck's value and your deductible, and cargo on what you haul. Our guide to semi truck insurance cost explains each pricing factor.
Questions to ask before you bind a policy
- Does the liability limit meet both the federal minimum for my cargo and every broker agreement I plan to sign?
- Which commodities and situations does the cargo form exclude, and is there a reefer breakdown option if I need one?
- Is the truck insured at stated value or actual cash value, and what deductible applies to collision and comprehensive?
- Who is listed as loss payee, and does it match my financing contract?
- If I am leased on, does my bobtail or non-trucking policy cover the situations my lease leaves to me?
- Has my insurer filed my BMC-91X with FMCSA in the exact name on my authority application? (FMCSA insurance filing requirements)
Sources
- 49 CFR 387.9, Financial responsibility, minimum levels, eCFR, consulted October 20, 2026.
- Insurance Filing Requirements, FMCSA, consulted October 20, 2026.
- Trailer Interchange coverage, Progressive Commercial (insurer), consulted October 20, 2026.
- New ATRI Research Analyzes Motor Carrier Responses to Rising Insurance Costs, ATRI, May 19, 2026, consulted October 20, 2026.
FAQ
Is commercial auto insurance the same as trucking liability?
Trucking liability is a commercial auto liability policy written for trucks. The NAIC notes that business auto insurance can include large trucks and vehicles used to carry goods. What makes it 'trucking' is the rating (radius, cargo, authority) and, for for-hire interstate carriers, the federal filing and the MCS-90 endorsement attached to it.
Can I buy all my trucking coverages from one insurer?
Often, yes: some trucking insurers, Progressive among them, offer liability, cargo and physical damage, so they can be bought together. Some lines, such as occupational accident, may come from a different company or through the carrier you lease onto. One insurer is not required; what matters is that every line your contracts ask for is in force and that certificates show the right limits.
Which trucking coverages are tax deductible?
The IRS says you can generally deduct premiums for business liability insurance and for vehicle insurance covering vehicles used in your business. If the truck is partly used personally, only the business share is deductible. See IRS Publication 334, and ask a tax professional about your own return.
Do I need every coverage on this page?
No. Only primary liability is required by federal law for a for-hire interstate carrier with its own authority, and household goods movers also need cargo. Everything else depends on your contracts, your lender, your lease and how much risk you can carry yourself. The coverage planner narrows the list to your situation.
Related
- RequirementsMotor carrier insurance requirements: the full 49 CFR 387.9 table, limits for authorized carriers, FMCSA filings, the MCS-90 and TX, CA and FL rules.
- Owner-operatorsOwner operator truck insurance for one truck: what you buy with your own authority vs leased onto a carrier, who requires each line, and what to buy first.
- Semi truck insurance costSemi truck insurance cost from Progressive's 2025 averages and ATRI's cents-per-mile data, the factors behind your price, and a worked per-mile example.
Updated October 20, 2026