Insurance is the most binary safety check in freight. Either the carrier has valid coverage or they don't. If they don't, and something goes wrong, you're potentially absorbing the entire loss.

The problem is that most shippers check insurance once — when they first qualify a carrier — and then never check again. Insurance policies lapse, get cancelled, and change coverage amounts between qualification cycles. A carrier that was fully insured three months ago might not be today.

What Insurance Carriers Are Required to Have

The FMCSA requires motor carriers to maintain minimum levels of insurance depending on what they haul and how they operate.

Bodily Injury and Property Damage (BIPD) Liability:

Cargo Type	Minimum Required
General freight (non-hazmat)	$750,000
Household goods	$750,000
Oil (hazmat)	$1,000,000
Other hazmat	$5,000,000

These are minimums. A single serious accident can easily exceed $750,000 in damages. Many shippers contractually require $1,000,000 or more in BIPD coverage regardless of cargo type.

Cargo Insurance:

The FMCSA does not require cargo insurance for most carriers. This surprises a lot of shippers. Cargo insurance protects against loss or damage to the freight itself, and while most carriers carry some level of cargo coverage, it's not a federal requirement for general freight carriers.

This is why your freight contract should specify minimum cargo insurance amounts. Don't assume a carrier has cargo coverage just because they're authorized to operate.

Where to Check Insurance Status

FMCSA SAFER System. Every carrier's insurance filing status is publicly available. You can look up a carrier by DOT or MC number and see whether their BIPD and cargo insurance are on file, the filing date, and the coverage amount.

Certificates of Insurance (COI). Request a COI directly from the carrier or their insurance provider. A COI shows the insurance company, policy number, coverage limits, effective dates, and named insured. Make sure your company is listed as a certificate holder so you're notified if the policy is cancelled.

Insurance carrier verification. For high-value or sensitive freight, call the insurance company listed on the COI to confirm the policy is active and hasn't been cancelled or modified since the certificate was issued.

What the FMCSA Filing Shows — and Doesn't Show

The FMCSA's insurance records show whether an insurance filing (Form BMC-91 or BMC-34) has been submitted. This confirms that an insurance company has filed proof of coverage with the federal government.

What it doesn't show in real time:

Whether the policy is currently active. There's a lag between an insurance cancellation and when the FMCSA database reflects it. A carrier could have their policy cancelled today, and the FMCSA record might not update for 30+ days.
Actual coverage limits beyond the minimum. The FMCSA filing shows the minimum required coverage. A carrier may carry higher limits, but you'll need to see the COI for the actual numbers.
Cargo insurance details. FMCSA insurance records focus on BIPD liability. Cargo insurance details are typically only available through a COI.

Red Flags in Insurance Verification

No insurance on file with FMCSA. If the FMCSA record shows "NONE" for BIPD insurance, the carrier is operating without meeting federal minimum requirements. Do not ship.

Minimum coverage only. A carrier hauling $500,000 worth of electronics with only $750,000 in BIPD coverage and no cargo insurance is underinsured for that load. The liability from a single serious accident could exceed their coverage.

Frequent insurance changes. If a carrier has changed insurance companies multiple times in a short period, it may indicate they're having difficulty maintaining coverage — which could signal financial instability or a claims history that makes them hard to insure.

Insurance effective date is very recent. A brand-new insurance filing combined with a brand-new operating authority is a common profile for shell companies used in strategic cargo theft. Not conclusive on its own, but worth flagging.

COI doesn't match FMCSA records. If the insurance company, policy number, or coverage amounts on a carrier-provided COI don't match what's on file with the FMCSA, something is wrong. Either the COI is outdated, or it's fraudulent.

Best Practices for Shippers

Check insurance at qualification and before every high-value shipment. Quarterly re-checks are a reasonable minimum for regular carriers. For loads exceeding $100,000, verify insurance status the day of pickup.

Require contractual minimums above FMCSA floors. Most sophisticated shippers require $1,000,000+ in BIPD and $100,000+ in cargo insurance regardless of cargo type. Put it in writing.

Request additional insured status. Being named as an additional insured on the carrier's policy gives you direct standing to make a claim if something goes wrong, rather than having to go through the carrier.

Automate monitoring where possible. Several compliance platforms can monitor carrier insurance status and alert you when a policy is cancelled or lapses. If you manage more than 50 carriers, manual checking at scale isn't practical.

The data is available. The verification takes minutes. The cost of not checking is a claim you can't collect on because the carrier's coverage lapsed three weeks before your shipment.