The federal cargo insurance mandate ends March 21 for most truckers,
but the 76-year-old requirement will continue for household goods
carriers and freight forwarders.

The Federal Motor Carrier Safety Administration final rule ends the
$5,000 cargo coverage minimum requirement affecting for-hire motor
common carriers of property and having to file proof of coverage with
the agency.

The rule also eliminates this insurance requirement for freight
forwarders, but the mandate continues for household goods freight
forwarders and household goods carriers.

While FMCSA has not required such a filing, numerous non-HHG carriers
have filed cancellations of their cargo insurance with FMCSA effective
March 21. The carriers’ cancellation notices triggered system-generated
letters to these carriers indicating that FMCSA would revoke their
authority within 30 days of the service date of the letter.

FMCSA says it want to clarify that non-HHG carriers and non-HHG
freight forwarders who have received Notices of Investigation for
Revocation of Authority based on the termination of cargo insurance on
or after March 21 need not respond to such letters if they have a
service date of Feb. 19 or after. FMCSA will not revoke the operating
authority of non-HHG carriers and non-HHG freight forwarders whose cargo
insurance expires on or after March 21.

The agency says it is taking corrective measures to alert carriers.

The Owner-Operator Independent Drivers Association and American
Trucking Associations supported eliminating the rule, authorized in the
1935 Motor Carrier Act.

The agency surveyed insurers with the largest number of cargo
policies on file with the FMCSA and found most policies are for $50,000
to $100,000 in liability. The agency said it is expected most carriers
will continue cargo insurance because customers will require it.

To view the rule, go to and search docket number FMCSA-2010-0189.