FMCSA scraps need for cargo insurance
WASHINGTON — For-hire carriers will no longer be required to maintain a minimum in cargo insurance, according to a final rule issued by the Federal Motor Carrier Safety Administration.
Beginning March of 2011, carriers and freight forwarders will also no longer need to file evidence of this insurance with the FMCSA.
The new rule does not apply to household goods carriers, however.
The FMCSA gained jurisdiction over motor carrier and freight forwarder cargo insurance in 1999.
FMCSA continued to register carriers as either "common’ or "contract’ under the transition rule because the agency had not yet implemented the new unified registration system.
In the Notice of Proposed Rulemaking (NPRM) designed to implement this new system, the agency proposed to eliminate the cargo insurance requirement for just about all motor carriers and freight forwarders.
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