Cargo insurance vs liability insurance
Glossary · Last reviewed: November 1, 2026 · By VetCarrier
Liability insurance, often called BIPD for bodily injury and property damage, pays judgments for injuries, deaths and damage to other people’s property caused by the carrier’s trucks; cargo insurance covers loss of or damage to the freight being hauled. FMCSA requires every for-hire interstate carrier to file proof of liability coverage, but requires a cargo filing only from household goods carriers.
Liability (BIPD)
The federal minimum for a for-hire carrier of non-hazardous property in interstate commerce, with vehicles of 10,001 pounds or more, is $750,000. Proof is filed with FMCSA on Form BMC-91 for the full limits, or Form BMC-91X for full coverage or one layer of it. The carrier keeps proof at its principal place of business, such as the MCS-90 endorsement, and must show it to the public on reasonable request.
Cargo
For household goods carriers, cargo coverage is filed on Form BMC-34 with the BMC-32 endorsement. Federal rules set no cargo filing for general freight. The amount and terms of cargo coverage are then whatever the carrier’s policy and your contract say. That is why brokers ask for a certificate showing cargo limits and confirm it with the insurer. Check the cargo limit against the value of the load and read the exclusions for the commodity you are shipping, because a policy can be in force and still not cover a particular load.
What it looks like in a carrier check
The “Insurance on file” row in a VetCarrier check is the liability filing only: for example “$1,000,000 on file” with “$750,000 required (liability)” under it. It does not show cargo coverage, the insurer’s name or the policy dates, and a figure on file is not a confirmed policy. See the carrier insurance check for what the row covers and how to confirm the rest.
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This page is general information, not legal or insurance advice.
Sources
- 49 CFR 387.301, Surety bond, certificate of insurance, or other securities (eCFR) (read 2026)
- 49 CFR 387.9, Financial responsibility, minimum levels (eCFR) (read 2026)
- 49 CFR 387.313, Forms and procedures, including cancellation notice (eCFR) (read 2026)
- 49 CFR 387.7, Financial responsibility required (eCFR) (read 2026)