BIPD Insurance (Bodily Injury and Property Damage)

The public liability insurance required by FMCSA to cover damages or injuries to others if a carrier is at-fault in an accident.

Bodily Injury and Property Damage (BIPD) insurance, often called primary auto liability, is a type of public liability coverage that is mandatory for motor carriers to obtain operating authority. This insurance covers the costs of bodily injury or property damage to third parties in an accident for which the carrier is found liable. The FMCSA sets minimum coverage amounts based on the type of operation and commodities transported. For most for-hire general freight carriers operating vehicles with a Gross Vehicle Weight Rating (GVWR) of 10,001 pounds or more, the federal minimum BIPD coverage is $750,000. For carriers hauling hazardous materials, the minimum can be $1,000,000 or $5,000,000. The insurance company must file proof of this coverage directly with the FMCSA using Form BMC-91 or BMC-91X. A carrier's MC number will remain inactive until this filing is completed and accepted. Many brokers and shippers contractually require carriers to maintain a higher limit of $1,000,000, even for general freight.

Example

A for-hire carrier operating a semi-truck must secure an insurance policy with at least $750,000 in BIPD liability coverage, and have their insurer file proof with the FMCSA, before their MC number becomes active.