Trucking Insurance Glossary
Every term you'll encounter in trucking insurance and FMCSA compliance, explained in plain English. No jargon, no legalese, just straight answers. 55 terms and counting.
A
Additional Insured
Policy TermsA person or company added to your policy who gets liability coverage from it. Common example: a broker requires you to add them as an additional insured on your auto liability policy before they'll give you loads.
Authority (Operating Authority)
FMCSA/DOTLegal permission from the FMCSA to operate as a for-hire carrier. Your MC number. Without it, you can't legally haul freight for pay across state lines. Takes about 21 days to become active after approval.
Auto Liability
Coverage TypesInsurance that covers damage and injuries you cause to OTHER people in an accident. FMCSA requires a minimum of $750,000 for general freight carriers. This is NOT coverage for your own truck — that's physical damage.
B
BMC-91
FMCSA/DOTThe federal filing that proves you have auto liability insurance meeting FMCSA minimums. Your insurance company files this electronically with the FMCSA. Also called a 'Form E' filing. Without it, your authority gets revoked.
BMC-91X
FMCSA/DOTSame as BMC-91 but filed by a surplus lines insurer. Functions identically — proves liability coverage to FMCSA.
Bobtail Insurance
Coverage TypesLiability coverage for your truck when you're driving WITHOUT a trailer. Example: you've dropped your trailer and you're driving the cab home. Technically different from non-trucking liability (NTL) but often used interchangeably. Needed mainly by owner-operators leased to carriers.
BOC-3
FMCSA/DOTBlanket of Coverage designation. A filing that names a process agent in every state where you operate. Required for all motor carriers with interstate authority. Think of it as someone who can accept legal papers on your behalf in states where you don't have an office. Costs about $30-50.
Broker (Freight Broker)
Industry TermsA middleman who connects shippers with carriers. They arrange transportation of freight without owning trucks. Most brokers require carriers to have at least $100K cargo insurance and $1M auto liability before offering loads.
C
Cargo Insurance
Coverage TypesCovers the freight you're hauling if it gets damaged, stolen, or lost during transport. Standard limit is $100,000. Not technically required by FMCSA for most carriers, but practically mandatory — almost no broker will give you loads without it.
CDL (Commercial Driver's License)
Industry TermsThe license required to operate commercial vehicles over 26,001 GVW (or any vehicle carrying hazmat). Class A covers tractor-trailers. Class B covers single large vehicles. Your CDL record (MVR) directly affects your insurance rates.
Certificate Holder
Policy TermsThe person or company listed on your Certificate of Insurance (COI). They get notified if your policy is cancelled. Being a certificate holder does NOT give them coverage — that requires being an 'additional insured.'
Certificate of Insurance (COI)
Policy TermsA one-page document that proves you have insurance. Brokers, shippers, and truck stops request these constantly. Your agent issues them — a good agent can get you a COI in minutes, not days. RMS typically issues same-day.
Claims History
Policy TermsYour record of past insurance claims. More claims = higher premiums. Claims typically affect your rates for 3-5 years. Even claims that aren't your fault can show up and impact rates with some carriers.
CLUE Report
Policy TermsComprehensive Loss Underwriting Exchange. A database of your past insurance claims. Insurers check this when quoting you. Similar to a credit report but for insurance claims.
Collision Coverage
Coverage TypesPart of physical damage insurance. Covers damage to your truck when you hit something (or something hits you). Has a deductible — the amount you pay before insurance kicks in. Common deductibles: $1,000-$5,000.
Combined Single Limit (CSL)
Policy TermsYour total liability coverage limit that applies to both bodily injury AND property damage per accident. A $750K CSL means your policy will pay up to $750K total for all injuries and property damage combined in one accident.
Comprehensive Coverage
Coverage TypesPart of physical damage insurance. Covers damage to your truck from things OTHER than a collision: theft, fire, vandalism, hail, flood, falling objects, hitting a deer. Usually has a lower deductible than collision.
CSA Score (Compliance, Safety, Accountability)
FMCSA/DOTThe FMCSA's safety rating system. Measures your safety performance in 7 categories. High CSA scores can trigger audits, limit which carriers will insure you, and prevent brokers from giving you loads. Checked by insurers when quoting.
D
Deadhead
Industry TermsDriving empty — no load. You're still insured under your auto liability when deadheading, but you're burning fuel and tires with no revenue. Some policies have different coverage terms for deadheading vs. loaded miles.
Deckpage (Declarations Page)
Policy TermsThe first page of your insurance policy. Shows your name, policy number, coverage types, limits, deductibles, premium, and effective dates. Keep this handy — it's the quick reference for what you have.
Deductible
Policy TermsThe amount YOU pay out of pocket before insurance kicks in. Example: $2,500 deductible on physical damage means you pay the first $2,500 of repairs, insurance pays the rest. Higher deductible = lower premium.
DOT Number (USDOT Number)
FMCSA/DOTYour federal registration number from the FMCSA. Every commercial vehicle operating interstate must have one. Not the same as your MC number. The DOT number identifies your company; the MC number authorizes you to haul freight for pay.
E
Endorsement
Policy TermsA change or addition to your existing insurance policy. Examples: adding a new truck, changing your radius, adding a driver, adding an additional insured. May increase or decrease your premium.
Exclusion
Policy TermsSomething your insurance specifically does NOT cover. Read these carefully. Common exclusions: intentional damage, operating while intoxicated, hauling excluded cargo types, driving outside your approved radius.
F
FMCSA
FMCSA/DOTFederal Motor Carrier Safety Administration. The federal agency that regulates trucking. They issue DOT numbers, MC numbers, set minimum insurance requirements, conduct audits, and monitor carrier safety. Think of them as the DMV for trucking.
Form E (see BMC-91)
FMCSA/DOTThe federal insurance filing that proves your liability coverage. Also called BMC-91. Your insurer files this electronically. Without it, FMCSA will revoke your authority.
G
Garage Keepers Insurance
Coverage TypesCovers vehicles in your care, custody, and control. Essential for towing companies. If you tow a car and it gets damaged while on your hook or in your yard, this pays for it.
General Liability
Coverage TypesCovers non-driving accidents. Someone slips on ice at your terminal. You damage a dock while loading. Your employee drops a pallet on someone's foot. Separate from auto liability, which only covers driving-related incidents.
GVW / GVWR
Industry TermsGross Vehicle Weight / Gross Vehicle Weight Rating. The maximum weight of your truck fully loaded. Determines CDL requirements, insurance classifications, and which regulations apply. Over 26,001 lbs requires a CDL.
H
Hazmat Endorsement
FMCSA/DOTAn addition to your CDL that allows you to haul hazardous materials. Requires background check and testing. Carrying hazmat increases your minimum insurance requirements to $1,000,000 (or $5,000,000 for certain materials).
Hired and Non-Owned Auto
Coverage TypesCovers liability when your employees use rental vehicles or their personal cars for business purposes. Inexpensive add-on that fills a common coverage gap for companies with employees.
HOS (Hours of Service)
FMCSA/DOTFMCSA rules limiting how many hours you can drive and work. 11-hour driving limit, 14-hour on-duty limit, 10-hour off-duty requirement. Violations show up on your safety record and can affect insurance rates.
I
IFTA (International Fuel Tax Agreement)
FMCSA/DOTA fuel tax agreement between US states and Canadian provinces. If you travel interstate, you need an IFTA license and must file quarterly fuel tax returns. Not directly insurance-related, but part of the compliance stack.
IRP (International Registration Plan)
FMCSA/DOTThe system for registering commercial vehicles that travel across multiple states. Your 'cab card.' Apportions registration fees based on the miles you travel in each state. Required for interstate carriers.
L
Loss Run
Policy TermsA report from your previous insurance company showing your claims history. New insurers often request 3-5 years of loss runs when quoting you. Clean loss runs = better rates. Ask your current insurer for these before your renewal.
M
MC Number
FMCSA/DOTMotor Carrier number. Your authority to operate as a for-hire carrier. Issued by FMCSA after you apply (takes 21+ days). Different from your DOT number — the MC authorizes the business activity, the DOT identifies the company.
MCS-150
FMCSA/DOTA biennial (every 2 years) update form you file with FMCSA. Updates your company information: address, number of trucks, drivers, miles driven, cargo types. Due in your birth month. Failing to file can deactivate your DOT number.
MCS-90
FMCSA/DOTA federal endorsement on your auto liability policy. It guarantees that your insurer will pay third-party claims even if your policy would normally deny them (fraud, late payment, excluded use). FMCSA requires it for all for-hire carriers. Does NOT benefit you — it protects the public.
MVR (Motor Vehicle Record)
Industry TermsYour driving record from the state DMV. Shows violations, accidents, license suspensions. Insurers pull this when quoting you. Clean MVR is the #1 thing you can control to keep insurance rates low.
N
Named Insured
Policy TermsThe person or company listed as the primary policyholder. Claims are paid to (or on behalf of) the named insured. If your business is an LLC, the LLC should be the named insured, not you personally.
New Authority / New Venture
Industry TermsA carrier that has had their operating authority for less than 2 years (sometimes 3 years, depending on the insurer). New authorities pay higher insurance rates because they have no claims history. Rates typically drop significantly after year 1 and again after year 2.
Non-Trucking Liability (NTL)
Coverage TypesLiability coverage for owner-operators when using their truck for personal use (not business). Technically different from bobtail, but often used interchangeably. You need this if you're leased onto a carrier — their insurance only covers you when under dispatch.
O
Occupational Accident Insurance
Coverage TypesCoverage for owner-operators (who aren't eligible for workers' comp) that pays medical bills, disability, and death benefits for on-the-job injuries. Think of it as the independent contractor version of workers' comp.
On-Hook Coverage
Coverage TypesFor towing operators: covers damage to vehicles while being towed (on the hook). If you damage a car while towing it, this pays for the repair. Essential for any towing operation.
Owner-Operator
Industry TermsA truck driver who owns their own truck and runs their own business. May operate under their own authority (MC number) or lease onto another carrier. Insurance needs vary significantly based on which arrangement they use.
P
Physical Damage Insurance
Coverage TypesInsurance that covers damage to YOUR truck (not other people's property). Two parts: comprehensive (non-collision events like theft, fire, hail) and collision (hitting things). Required if your truck is financed or leased. Optional but recommended if your truck is worth over $20K.
Policy Period
Policy TermsThe dates your insurance is active. Typically 12 months (annual policy) or 6 months. Your policy must be continuously active — any lapse triggers FMCSA action and can be very difficult to fix.
Premium
Policy TermsThe amount you pay for your insurance coverage. Can be paid annually, semi-annually, quarterly, or monthly. Monthly payments usually include a small finance charge. Your premium is based on your risk profile: authority age, driving record, truck value, cargo type, radius, and state.
Primary Liability
Policy TermsThe main liability coverage for a trucking operation. If you have your own authority, YOUR policy is primary. If you're leased onto a carrier, THEIR policy is primary (yours kicks in as bobtail/NTL when off dispatch).
R
Radius
Industry TermsHow far from your base you typically operate. Insurance classifications: local (under 100 miles), intermediate (100-300), regional (300-500), long-haul/OTR (500+). Broader radius generally means higher premium.
S
Subrogation
Policy TermsWhen your insurance company recovers money from someone else's insurance after paying your claim. Example: another driver hits your truck, your insurer pays your claim, then pursues the other driver's insurer to get reimbursed.
T
Trailer Interchange
Coverage TypesInsurance covering a trailer that you don't own but are pulling under a trailer interchange agreement. Covers physical damage to someone else's trailer while in your possession.
U
UCR (Unified Carrier Registration)
FMCSA/DOTAn annual registration and fee required for interstate motor carriers, brokers, and freight forwarders. Fees are based on fleet size. Must be renewed annually. Another part of the compliance stack.
Umbrella / Excess Liability
Coverage TypesExtra liability coverage that kicks in above your primary policy limits. Example: You have $1M auto liability. A $2M umbrella means you have $3M total. Used by larger fleets or carriers hauling high-risk cargo.
W
Workers' Compensation
Coverage TypesInsurance that pays medical bills and lost wages for employees injured on the job. Required in almost every state if you have employees (including hired drivers). Owner-operators without employees typically don't need this — they get occupational accident insurance instead.
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