Insurance Requirements for New Motor Carriers in North Carolina

Starting a new trucking company or becoming an owner-operator in North Carolina is an exciting venture, but navigating the strict insurance requirements can be daunting. To activate your MC authority and legally haul freight, you must meet specific federal and state insurance mandates.

FMCSA Primary Liability Requirements

The Federal Motor Carrier Safety Administration (FMCSA) dictates the minimum Primary Auto Liability limits you must carry based on the type of freight you haul:

• $750,000 Minimum: For most standard freight (non-hazardous) transported in vehicles weighing over 10,000 lbs. (Note: Most brokers require $1,000,000).
• $1,000,000 Minimum: For hauling oil or certain hazardous materials.
• $5,000,000 Minimum: For hauling specific highly hazardous materials or explosives.

What Brokers Actually Require

While the FMCSA minimum is $750,000 for standard freight, almost all major load boards and freight brokers require a $1,000,000 Primary Auto Liability limit and at least $100,000 in Motor Truck Cargo insurance. If you only carry the federal minimum, you will struggle to find loads.

The MCS-90 Endorsement

The MCS-90 is an endorsement attached to your primary liability policy. It acts as a guarantee to the public that your insurance company will pay for damages resulting from an accident, even if your specific policy excludes the cause of the accident. It is required for all interstate motor carriers.