- Part 387 requires motor carriers to carry minimum liability coverage ("financial responsibility") for injuries and damage they cause.
- The minimum depends on the cargo: $750,000 for general freight, $1 million for oil and most hazardous materials, and $5 million for the most dangerous hazmat.
- The MCS-90 endorsement makes sure the public can collect up to the minimum, even when the policy might not otherwise cover the claim.
Property carriers (§387.9)
| Type of carriage | Minimum |
|---|---|
| For-hire, interstate or foreign commerce, 10,001+ lbs, non-hazardous property | $750,000 |
| Oil; hazardous waste; hazardous materials and substances not in the $5 million category (10,001+ lbs) | $1,000,000 |
| Certain bulk hazardous substances, explosives (Divisions 1.1–1.3), poison inhalation hazard Zone A materials, highway-route-controlled radioactive material | $5,000,000 |
Passenger carriers (§387.33)
Vehicles designed to carry 15 or fewer passengers (including the driver) need at least $1.5 million. Vehicles designed for 16 or more need at least $5 million.
The MCS-90 endorsement (§387.15)
The endorsement is attached to the carrier's liability policy. If a final judgment is entered against the carrier for public liability, the insurer agrees to pay it up to the federal minimum, even if a policy condition or exclusion would otherwise defeat coverage. The insurer may then seek repayment from the carrier.
Who is covered
The interstate requirements apply to carriers operating in interstate or foreign commerce. Some limits also apply to hazardous materials carriers in intrastate commerce. Texas intrastate carriers also file insurance with TxDMV. See Texas intrastate operating authority.
Related
Official text: 49 CFR Part 387 on eCFR.