BIPD liability insurance
Also called BIPD, Bodily injury and property damage
Liability insurance covers bodily injury and property damage a carrier causes to others, and federal minimum coverage must be filed with the FMCSA to keep authority active.
Last reviewed · by the Fleetchart team
Coverage minimums depend on the commodity hauled, with higher requirements for hazardous materials. The filing is made by the insurer directly.
It is distinct from cargo insurance, which covers the freight itself, and from physical damage coverage on the truck.
Premiums are one of the largest fixed costs for a small carrier and are strongly affected by safety record and how long the authority has existed.
For example, say your liability premium is $12,000 a year and the truck runs 100,000 miles. That is $12,000 ÷ 100,000 = $0.12 a mile. If the truck only runs 80,000 miles, the same premium is $12,000 ÷ 80,000 = $0.15 a mile. The bill does not shrink when the truck sits.
Premiums are often paid monthly, so the cost is easy to see in the bank but easy to leave out when you judge a load. Put it in your fixed costs so every rate you accept covers it. Keep the filing active too, because if it lapses, brokers stop giving you loads.