Primary Liability: The Federal Minimum vs. What Brokers Actually Require
Primary auto liability is the foundation of the stack. It is federally required, and the FMCSA sets minimum liability levels based on your authority type and the freight you haul.
For general freight carriers hauling loads over 10,001 pounds, the federal minimum is $750,000. But the practical reality is different.
Most freight brokers and shippers require $1,000,000 in primary liability before they will tender a load. Hauling hazardous materials pushes the requirement to $1,000,000 to $5,000,000 depending on the commodity. Carrying only the federal minimum limits the loads available to you.
Budget $8,000 to $15,000 per year for primary liability alone at the $1,000,000 level. New authorities typically pay more. Rates stabilize after 24 to 36 months of clean operation.
Motor Truck Cargo: What Brokers Check Before Assigning a Load
Cargo insurance covers damage or loss to the freight you are hauling. Most brokers and shippers require a minimum of $100,000 in cargo coverage before they will work with you.
The cost typically runs $500 to $1,800 per year depending on commodity type, freight value, and operating territory.
A few things cargo insurance does not always cover by default:
- Theft (many 2025 and 2026 policies exclude theft as standard; it needs to be added as an endorsement)
- Reefer breakdown and temperature-related spoilage (requires a separate reefer breakdown endorsement)
- High-value commodities like electronics or pharmaceuticals (may require separate inland marine coverage)
Review your cargo policy exclusions with your broker before hauling anything outside your standard freight profile. Carrying undisclosed cargo types can affect coverage validity on a claim.
Physical Damage: Protecting Your Equipment
Physical damage coverage protects your truck and trailer against collision, theft, fire, vandalism, and weather events. If your truck is financed, your lender requires it. If your truck is paid off, the question is whether you can absorb the replacement cost out of pocket.
A semi-truck can cost $80,000 to $180,000 or more to replace. Physical damage is typically priced at 5 to 6.5 percent of the truck's total insured value per year.
Deductibles range from $1,000 to $5,000 per occurrence. A higher deductible reduces your annual premium but increases your out-of-pocket exposure after a claim. Set your deductible at a level your cash flow can actually cover.
Non-Trucking Liability and Bobtail: The Off-Dispatch Gap
These two coverages address what happens when your truck is in use but not under dispatch.
Non-trucking liability (NTL) covers personal use of the truck, such as driving to a repair shop, running a personal errand, or using the truck for any purpose not related to the carrier's business. Most lease agreements require it.
Bobtail coverage covers the truck when it is being driven without a trailer attached, regardless of whether it is under dispatch. If you regularly run bobtail between jobs, bobtail coverage is the right layer.
The two are often confused but apply in different situations. Your lease agreement and how you use the truck between loads determines which one you need, and in some cases you need both.
