Primary Liability
Auto liability for bodily injury and property damage a motor carrier causes to others. It is the coverage behind the FMCSA financial-responsibility filing and is required to operate under authority.
Motor Truck Cargo
Coverage for loss or damage to the freight a carrier is hauling, subject to the commodity, limit, and exclusions on the policy. Shippers and brokers usually require it.
Physical Damage
Coverage for a carrier's own tractors, trailers, and equipment against collision, theft, fire, and other covered causes. Lenders and lessors usually require it.
Bobtail Liability
Coverage for operating a tractor without a trailer attached, typically when not under a motor carrier's dispatch. It overlaps with non-trucking liability.
Non-Trucking Liability
Coverage for a leased owner-operator's liability when using the truck not in the business of the carrier they lease to, since the carrier's policy generally only covers them under dispatch.
Trailer Interchange
Physical damage coverage for a trailer a carrier does not own but is responsible for under a written interchange agreement.
MCS-90
A federally required endorsement that guarantees payment to the public up to the federal minimum for certain accidents, even if the policy would not otherwise cover them. The carrier must reimburse the insurer. It protects the public, not the carrier.
BMC-91 / BMC-91X
FMCSA financial-responsibility filings submitted by an insurer to show a for-hire carrier maintains the required minimum liability coverage. The authority generally depends on it staying in force.
BOC-3
A filing that designates process agents in each state who can receive legal documents on a carrier's or broker's behalf. The FMCSA generally requires it before granting operating authority.
Operating Authority
FMCSA permission to operate as a for-hire carrier or broker, commonly identified by an MC number. It is tied to required insurance filings.
MC Number
The motor carrier or operating-authority number issued by the FMCSA to for-hire carriers and brokers. It is distinct from the USDOT number.
USDOT Number
A number that identifies a carrier's operation for federal safety and registration purposes. Many for-hire interstate operations need both a USDOT number and operating authority.
UCR
Unified Carrier Registration, an annual federal program requiring most interstate carriers, brokers, and freight forwarders to register and pay a fee based on fleet size.
IFTA
The International Fuel Tax Agreement, which lets qualifying interstate carriers report and pay fuel taxes through a single base-state license and quarterly return.
IRP
The International Registration Plan, apportioned vehicle registration that lets a qualifying interstate vehicle operate across member states with fees split by miles traveled in each.
Reefer Breakdown
Coverage for refrigerated cargo spoiled by a refrigeration unit failure, a loss standard motor truck cargo policies often exclude or limit. It usually carries maintenance and temperature conditions.
Contingent Cargo
Coverage that can respond when a hired carrier's cargo insurance fails to pay, protecting a broker or shipper. It is a backstop, not a replacement for the carrier's coverage.
Occupational Accident
Injury coverage often used for leased owner-operators who are not employees, providing benefits without a workers compensation employment relationship.
Radius
The distance a carrier typically operates from its base, often described as local, regional, or long-haul. It affects underwriting, pricing, and coverage assumptions.
Trailer Interchange Agreement
A written agreement under which carriers exchange trailers and assume responsibility for trailers in their possession, which trailer interchange coverage is tied to.
