What's the minimum primary liability required by FMCSA?

$750,000 for general freight in interstate commerce. Hazmat and certain commodities require higher minimums ($1M-$5M). Most carriers carry $1M as the practical baseline.

Do brokers require a cargo limit?

Yes — almost universally. $100K is the de facto standard for general freight. High-value brokers ask for $250K+. Some loads (auto parts, electronics) require specialty riders.

What happens if my cargo limit isn't enough for a damaged load?

You're personally on the hook for the shortfall. A $200K cargo claim against a $100K limit means $100K out of pocket. This is the leading cause of new-authority insolvency on a single bad load.

Is non-trucking liability the same as primary liability?

No. Non-trucking liability (NTL or 'bobtail') covers the truck while it's not under dispatch. Primary covers under dispatch. Leased-on owner-operators often carry NTL on top of the motor carrier's primary.

Can one policy bundle both?

Yes — most trucking-specialized insurers (Progressive, Sentry, Great West, NorthLand) sell primary + cargo + physical damage as a bundled policy with consistent claims handling.

Primary Liability Insurance vs Cargo Insurance — Insurance Comparison

Primary liability and cargo insurance are two separate coverages every for-hire interstate carrier needs. Primary liability covers third-party damages the carrier causes. Cargo covers loss or damage to the freight in the trailer. New authorities sometimes assume one covers the other — they don't.

Editorial estimates — verify rates with providers.

Side-by-side

	Primary Liability Insurance	Cargo Insurance
Tagline	Covers bodily injury and property damage to third parties caused by the carrier.	Covers loss or damage to the freight the carrier is hauling.
Federal minimum	$750,000 for general freight	$100,000 - $250,000
Typical limit	$1,000,000	$1,000 - $2,500
Hazmat / passenger	Up to $5,000,000 depending on commodity	Electronics, alcohol, tobacco, pharmaceuticals require riders
What it covers	Third-party bodily injury + property damage	Loss/damage to freight in transit
Typical cost	$8,000 - $15,000/year per truck for prime owner-operators	$1,000 - $3,000/year for $100K limit

Primary Liability Insurance

Covers bodily injury and property damage to third parties caused by the carrier.

Pros

Federally required ($750K minimum; $1M typical in practice)
Pays for damage your truck causes to other vehicles and people
Required by brokers and shippers on rate confirmations
BMC-91 filing satisfies FMCSA financial responsibility

Cons

Doesn't cover the cargo you're hauling
Doesn't cover your own truck (need physical damage)
Premium scales with truck count, miles, lanes, and CSA scores

Cargo Insurance

Covers loss or damage to the freight the carrier is hauling.

Pros

Required by most brokers and shippers ($100K typical floor)
Pays for theft, fire, collision damage, water damage to cargo
Separate limits don't reduce primary liability
Bundled with primary by most insurers

Cons

Doesn't cover damage your truck causes to other vehicles
Specific commodity exclusions on most policies
Deductible typically $1,000 - $2,500 per claim

Which should you choose?

These aren't alternatives — they're complementary. Every for-hire carrier needs both. Primary liability is federally mandated; cargo is contract-mandated by virtually every broker and shipper. Skipping either is operationally impossible. The right question isn't 'which one' but 'are my limits sufficient given the freight I haul'. High-value freight (electronics, pharma) typically needs $250K+ cargo limits.

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FAQs

What's the minimum primary liability required by FMCSA?: $750,000 for general freight in interstate commerce. Hazmat and certain commodities require higher minimums ($1M-$5M). Most carriers carry $1M as the practical baseline.
Do brokers require a cargo limit?: Yes — almost universally. $100K is the de facto standard for general freight. High-value brokers ask for $250K+. Some loads (auto parts, electronics) require specialty riders.
What happens if my cargo limit isn't enough for a damaged load?: You're personally on the hook for the shortfall. A $200K cargo claim against a $100K limit means $100K out of pocket. This is the leading cause of new-authority insolvency on a single bad load.
Is non-trucking liability the same as primary liability?: No. Non-trucking liability (NTL or 'bobtail') covers the truck while it's not under dispatch. Primary covers under dispatch. Leased-on owner-operators often carry NTL on top of the motor carrier's primary.
Can one policy bundle both?: Yes — most trucking-specialized insurers (Progressive, Sentry, Great West, NorthLand) sell primary + cargo + physical damage as a bundled policy with consistent claims handling.