Insurance is one of the most critical things to verify when vetting a carrier. But not all insurance is the same, and understanding the different types and coverage amounts can be the difference between recovering your freight value after a loss — or eating it entirely.
CarrierCheck shows a carrier's insurance type, coverage amount, insurer, policy number, and any pending cancellations — all from the FMCSA database. Look up any carrier here.
Types of Carrier Insurance
There are two primary types of insurance you'll see on FMCSA records:
BI&PD — Bodily Injury & Property Damage
Covers injury to people and damage to property caused by the carrier's vehicles. Required for all for-hire carriers. Federal minimum is $750,000 for general freight and $1,000,000+ for hazardous materials.
Cargo Insurance
Covers the actual freight being transported. If your shipment is lost, stolen, or damaged in transit, cargo insurance is what pays out. NOT automatically required by FMCSA for all carriers, but should be required by you.
Federal Minimum Coverage Requirements
- General freight (non-hazmat): $750,000 BI&PD minimum
- Household goods: $750,000 BI&PD minimum
- Oil (non-hazmat): $1,000,000 minimum
- Hazardous materials: $1,000,000 to $5,000,000 depending on material
- Passengers (for hire): $1,500,000 to $5,000,000
The federal minimums are floors, not recommendations. For high-value shipments, you should require carriers to carry cargo insurance well above the minimum. A $750,000 BI&PD policy may not cover your freight value plus liability in a major accident.
What to Check When Verifying Insurance
- Coverage amount — is it sufficient for your freight value?
- Insurance type — do they have both BI&PD and cargo coverage?
- Insurer name — is it a real, licensed insurance company?
- Effective date — when did the policy start?
- Pending cancellation — is there a cancellation date coming up?
Pending Insurance Cancellation — What It Means
A pending cancellation means the insurance company has filed notice with FMCSA that they intend to cancel the policy. This is a critical warning sign. Common reasons include:
- Non-payment of premiums
- Too many claims
- Policy violations
- Carrier going out of business
Do not book loads with a carrier showing a pending insurance cancellation. The cancellation could take effect while your freight is in transit, leaving it completely uninsured.
Always Request a Certificate of Insurance
Beyond what FMCSA shows, always request a current Certificate of Insurance (COI) directly from the carrier. The COI should list your company as an additional insured or certificate holder. This gives you direct notification if the policy is cancelled or changed.
Check a carrier's insurance on file
Free FMCSA lookup — see coverage amount, insurer, and pending cancellations
Verify Insurance →Bottom Line
Never assume a carrier is properly insured just because they have a USDOT number. Always verify the type of insurance, coverage amount, and cancellation status in FMCSA records. For high-value shipments, require cargo insurance explicitly and get a COI naming your company. Insurance verification is one of the most important steps in carrier vetting.