Requirements
How much insurance does a trucking company need?
There are two answers to this question: the legal minimum that keeps your authority active, and the commercial minimum that gets your trucks loaded. Below are both, policy by policy, plus why brokers tightened their requirements in 2026 and what the usual limits cost.
Federal minimum liability by operation
For-hire interstate carriers must carry public liability insurance, which pays for injuries and property damage you cause to others. Under 49 CFR 387.9, the minimum depends on what you haul and the gross vehicle weight rating (GVWR) of your trucks. Passenger carriers and small-vehicle fleets fall under 49 CFR 387.303.
Federal rules do not require cargo insurance for general freight. The only federal cargo requirement under 387.303 applies to household goods movers. Intrastate carriers follow their own state’s limits, except for certain hazardous materials, which 387.9 covers even within one state.
| Operation | Federal minimum |
|---|---|
| General freight, for-hire, trucks 10,001 lb or more | $750,000 liability |
| General freight, fleet of only vehicles under 10,001 lb | $300,000 liability |
| Oil and most hazardous materials | $1,000,000 liability |
| Bulk and high-hazard materials (e.g. hazmat in cargo tanks) | $5,000,000 liability |
| Passenger vehicles for 15 or fewer, including driver | $1,500,000 liability |
| Passenger vehicles for 16 or more, including driver | $5,000,000 liability |
| Household goods movers: cargo | $5,000 per vehicle, $10,000 per occurrence |
What brokers actually require
The federal minimum keeps you legal, but it will not get you far on the load boards. C.H. Robinson requires $1,000,000 in auto liability and $100,000 in cargo coverage, and says the legal minimums “do not align with the insurance thresholds required to haul a majority of freight” on its platform. TQL lists the same $1 million auto liability and $100,000 cargo minimums, and requires reefer breakdown coverage on the certificate for refrigerated loads.
Insurance is not the only screen. C.H. Robinson also requires your authority to have been active for at least 7 days and an FMCSA safety rating of Unrated or Satisfactory; carriers rated Conditional or Unsatisfactory are not certified. Many carriers treat $1 million auto liability and $100,000 cargo as the real starting point for a new trucking company for this reason.
Why brokers tightened requirements in 2026
On May 14, 2026, the Supreme Court ruled unanimously in Montgomery v. Caribe Transport II that freight brokers can be sued under state law for negligently selecting unsafe motor carriers. Before that, several federal courts had dismissed these claims against brokers.
Brokers responded quickly. C.H. Robinson says it added carrier certification measures less than a week after the decision, including the $1 million auto liability minimum and the safety-rating rule. Overdrive reported that the changes appear to have locked some owner-operators out of the broker’s network, including any carrier with a Conditional rating. Expect more brokers and shippers to check your limits, safety rating and insurance history closely.
The full insurance program, policy by policy
Auto liability and cargo are only part of the picture. This is how a typical trucking company’s coverage is built and who sets each limit. Exact amounts depend on your contracts, equipment and freight.
| Policy | Who requires it | Typical limit |
|---|---|---|
| Auto liability | FMCSA and brokers | $1,000,000 |
| Motor truck cargo | Brokers and shippers | $100,000, more for high-value freight |
| Reefer breakdown | Brokers, for refrigerated loads | Matches cargo limit |
| Physical damage | Usually your lender or lessor | Value of the truck and trailer |
| Trailer interchange | Agreements to pull others’ trailers | Value of the trailer |
| Workers’ compensation | State law, once you have employees | Set by state law |
| General liability | Shippers, warehouses, landlords | Set by the contract |
| Non-trucking liability | Carriers you lease onto | Set by the lease |
What these limits cost
Insureon reports that its trucking customers pay a median of $816 a month, or $9,794 a year, for commercial auto; 24% pay less than $500 a month and 64% pay less than $1,000. Progressive Commercial reports 2025 national averages of $734 a month for for-hire specialty truckers and $926 for other transportation truckers.
The other policies are smaller line items. Insureon’s trucking medians are $129 a month for motor truck cargo, $51 for general liability and $650 for workers’ compensation. Your total depends on your trucks, drivers, radius, freight, claims history and the limits you choose.
How to carry enough without overpaying
The cheapest program is the one that meets your customers’ requirements the first time, so you are not adding endorsements mid-term or losing loads.
- Collect the carrier packets of the brokers and shippers you plan to work with before you buy, and quote to the highest limits they require.
- Set your cargo limit by your most valuable typical load, and ask about exclusions such as unattended trucks, theft and reefer breakdown.
- Keep your safety rating at Satisfactory or Unrated; C.H. Robinson will not certify Conditional-rated carriers.
- Avoid coverage lapses, which can put your authority at risk and make future quotes harder to get.
- Describe your radius, commodities and drivers accurately so the price does not change after underwriting.
- Compare several insurers, since appetite for new authorities and freight types varies widely. A broker such as Florin can compare quotes from several insurers for you.
Frequently asked questions
Is $750,000 in liability enough for a trucking company?
It meets the federal minimum for general freight in trucks of 10,001 pounds or more. Most large brokers, including C.H. Robinson and TQL, require $1 million, so $750,000 limits the loads you can book.
Do I need cargo insurance if FMCSA doesn’t require it?
Federal rules require cargo coverage only for household goods movers. In practice, brokers such as C.H. Robinson and TQL require at least $100,000 in cargo coverage.
How much insurance does an owner-operator leased to a carrier need?
The motor carrier usually provides primary liability while you are under dispatch. Progressive Commercial notes leased owner-operators often buy non-trucking liability for personal use, plus physical damage on their own truck, and Insureon notes many independent contractors buy occupational accident insurance instead of workers’ comp.
Do intrastate trucking companies need the same limits?
No. The $750,000 minimum in 49 CFR 387.9 applies to interstate for-hire carriers, and each state sets its own intrastate limits. Certain hazardous materials hauled in bulk fall under the federal minimums even within one state.
How much insurance does a hotshot company need?
If every vehicle in your fleet is under 10,001 pounds GVWR, the federal minimum under 49 CFR 387.303 is $300,000. Heavier combinations need $750,000, and brokers still typically ask for $1 million.
Figures are third-party estimates and examples, not quotes. Coverage depends on the policy terms and underwriting, and rules vary by state.