primary liability

Key Takeaways

• Primary liability coverage is required for interstate motor carriers by federal regulation. Minimum limits are set by FMCSA based on commodity type.
• Primary liability covers third-party bodily injury and property damage claims. It does not cover the carrier's own vehicle or cargo.
• Review your primary liability limits with your broker. Federal minimums may not be adequate for your specific operation and cargo types.

Plain-English meaning

Primary liability coverage provides protection for bodily injury and property damage claims brought by third parties against the insured trucking company or driver. It is the coverage that pays when a truck accident results in another party being injured or their property damaged, subject to policy terms.

Federal regulations require interstate motor carriers to maintain minimum levels of financial responsibility. The required minimum depends on the type of cargo hauled.

Federal minimum requirements

Under 49 CFR Part 387, FMCSA sets minimum financial responsibility levels for interstate motor carriers. The minimum for carriers hauling non-hazardous freight in vehicles over 10,001 lbs GVWR is $750,000. Carriers hauling certain hazardous materials face higher minimums — up to $5,000,000 depending on commodity.

These are federal minimums, not recommended coverage levels. Many commercial trucking operations, particularly those serving shippers who require higher limits by contract, carry primary liability limits well above the federal floor. Your broker can identify what limits are standard for your specific operation and customer base.

Coverage considerations

Primary liability coverage is not the same as cargo coverage (which covers freight in the carrier's possession) or physical damage coverage (which covers the carrier's own vehicle). Each claim type has its own coverage category.

Reviewing primary liability limits regularly — at policy renewal and when operations change significantly — ensures the coverage keeps pace with the actual risk exposure.