Row 9: Operating without required minimum insurance (49 CFR 387.7(a))
Row 9 fails a new carrier that operates a motor vehicle without having the required minimum levels of financial responsibility (liability insurance or a surety bond) in effect.
What the rule says
Under 49 CFR 387.7 (a), no motor carrier may operate a motor vehicle until it has obtained, and has in effect, the minimum levels of financial responsibility in 49 CFR 387.9. "In effect" is the important part: insurance that lapsed for a week, or a policy that didn't start until after the first load, is a violation for those days.
The minimum levels
| Type of carriage (vehicles of 10,001 lbs GVWR or more unless noted) | Minimum |
|---|---|
| For-hire, interstate or foreign: property (non-hazardous) | $750,000 |
| Oil, hazardous waste, hazardous materials or substances listed in 172.101, not in the higher tier | $1,000,000 |
| Certain bulk hazardous substances, bulk Division 1.1–1.3 explosives, bulk Division 2.3 Hazard Zone A, highway-route-controlled Class 7 and similar (also under 10,001 lbs for some) | $5,000,000 |
This is a summary of the table in 387.9; check the exact wording for hazmat loads.
Proof and continuity
- Proof must be kept at your principal place of business: the MCS-90 endorsement issued by your insurer, an MCS-82 surety bond, or an FMCSA self-insurance authorization (49 CFR 387.7).
- Policies and endorsements must remain in effect continuously until terminated, and cancellation requires 35 days' written notice by either side.
- The proof is public information and must be produced on reasonable request by a member of the public.
- Foreign-domiciled carriers operating in the US must carry a legible English copy of the proof in each vehicle.
What an auditor will compare
The policy declarations and MCS-90 (dates, limits, named insured), against your first operating date and the dates of loads, fuel receipts or logs. Gaps between policies, a policy issued under a different legal name than your USDOT registration, or limits below what your loads require are the usual problems.
How to fix it
- Confirm with your agent that the policy limit meets 387.9 for everything you haul, including any hazmat.
- Get the MCS-90 and keep a copy in your office file, not just in the truck.
- Check the named insured matches your FMCSA registration exactly.
- Set renewal reminders well before expiry, and never run a load on a lapsed policy.
Liability insurance is separate from cargo insurance, which brokers and shippers may require but which isn't part of this row.
If an auditor finds this violation, the audit fails. FMCSA then has up to 45 days to send written notice, and you get 60 days from the notice date to fix the problem and prove it (45 days for certain passenger and hazmat carriers) before your new entrant registration is revoked (49 CFR 385.319, 49 CFR 385.325). The overview explains the timeline.