Question: BMC-91?

Discussion in 'Ask An Owner Operator' started by Wildcat74, Jun 4, 2011.

  1. Wildcat74

    Wildcat74 Medium Load Member

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    Just got a letter stating that I need to obtain "insurance (liability: form BMC-91 or BMC-91x)".

    Question is this, is just having insurance enough to fill this need or do I need to fill out some sort of paperwork as well? I came across this page http://www.fmcsa.dot.gov/registration-licensing/licensing/registr.htm and there's a spot that says freight insurance of anywhere between $750k and $5M is required. If I am currently only hauling aggregates locally with no freight insurance requirements do I still need to get this coverage to keep my authority from being cancelled? I was planning on waiting to get that coverage until I started with the flatbed stuff but if I'm reading this right I may not have this option... Anyone have any input?
     
  2. Working Class Patriot

    Working Class Patriot Road Train Member

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    Call up an insurance broker....Uh, google "Coast Transport"......they'll help you out....

    They specialize in dumps...But I still use them.....
     
  3. Wildcat74

    Wildcat74 Medium Load Member

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    I've just got a dump now myself, looking into the flat and van stuff for the future though.
     
  4. oilfieldtrash

    oilfieldtrash Light Load Member

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    I read somewhere that aggregates and such were exempt commodities therefore don't require an MC nmuber. I can't find it now and I'm sure there were other stipulations.
     
  5. High Desert Dweller

    High Desert Dweller Medium Load Member

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    Your insurance underwriter files the BMC-91 with FMCSA. All that's needed is $750,000 minimum liability, freight (or cargo) insurance is not mandatory, but brokers usually require $100,000 minimum. Direct shippers may require more.

    Once your insurance policy is valid, your agent will provide you with as many Acord Certificates as you need:

    http://www.ua.edu/financial/riskmgmt/forms/sample-certificate-of-liability-ins.doc
     
  6. Floydr47

    Floydr47 Bobtail Member

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    Man, I bet a lot of people ask that same question. I know that I did. The $750,000-$5 million is Primary Liability insurance that is required by the USDOT before they will issue your number. Load insurance is a completely different animal. The Primary Liability covers you if you are involved in an accident against liability up to the amount of insurance you are carrying (750,000-5,000,000). That is the first insurance that you need to carry and will be filed by your Commercial Insurance Agent on a "proof of insurance" form BMC-91 with the USDOT. Next you need to carry (for your own protection) a Comprehensive Policy that will cover the cost of replacing or repairing your rig (truck and trailer). Then you need Load (Cargo) Insurance to cover the total value of your load should it become damaged by fire, theft, being spilled on the road from an accident, etc. The cost of load insurance varies by the load. You wouldn't insure a load of scrap iron for the same amount you would a load of new automobiles. In Texas the minimum amount of Primary Liability needed for Intrastate operators is $500,000 and the minimum amount for Interstate Operators is $750,000. I just finished walking through the "insurance minefield" and believe me it wasn't a picnic. I learned a lot, the hard way. Best thing to do is get with an experienced Commercial Insurance Agent, ask a lot of questions, and find the policy that is tailored to suit your needs. Good luck to you. I hope that I was of some help.
     
  7. vangtransport

    vangtransport Medium Load Member

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    You do not need any insurance for DOT to issue you a number, a number will be issued regardless of insurance on file. To make a MC number "Active", insurance is required in the minimum amount of $750,000, regardless of what state one lives in. You do not need "Comprehensive" coverage, this coverage is to cover assets such as truck and trailer. Cargo insurance does not go up and down depending on load type, It's up to the carrier to decide the total amount of coverage, usually $100,000, but minimum was $10,000 in 2004.
     
  8. kw600

    kw600 Heavy Load Member

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    Vang is spot on
     
  9. Floydr47

    Floydr47 Bobtail Member

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    Really Vang, what good is an inactive DOT number? Naturally you need the $750,000 Primary Liability if you plan to legally use your USDOT number. I also made it clear that Comprehensive Insurance was needed for your own protection...unless of course you have the money to replace your truck and trailer after an accident so you can continue giving your family luxuries like three meals a day. There are also insurance companies that sell cargo insurance on a per load basis. It's sometimes high dollar but it beats having to pay for a HAZMAT team if you dump a load of chemicals on the road...and I just got my TXDOT this morning...TXDMV requires only $500,000 Primary Liability for Intrastate UNLESS you are transporting hazardous cargo, passengers (over 15 passengers driver included) then they require more...
     
  10. vangtransport

    vangtransport Medium Load Member

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    Yes Really!! Anything else?