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 dispatch desk
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.