BIPD stands for Bodily Injury and Property Damage. It’s the liability insurance that pays when you injure someone or damage their property with your truck — and it’s the coverage FMCSA requires before you can operate under your own authority.
Every other trucking coverage is optional in some circumstance. This one isn’t. Without it, you don’t have active operating authority.
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What BIPD Covers
Two things, which is why it has two names in it.
Bodily injury — medical costs, lost wages, pain and suffering, and legal defense when someone is hurt in an accident you’re liable for.
Property damage — repair or replacement of the other party’s vehicle, cargo, or property. A guardrail, a storefront, another carrier’s trailer.
It responds when you’re at fault. It pays the other party, not you.
What BIPD Does Not Cover
This is where most of the confusion lives.
| Not covered by BIPD | What covers it |
|---|---|
| Your own truck | Physical damage insurance |
| The freight you’re hauling | Motor truck cargo insurance |
| Your own injuries | Occupational accident or workers’ comp |
| Driving off-dispatch without a load | Bobtail / non-trucking liability |
| A trailer you’re pulling but don’t own | Trailer interchange insurance |
The pattern: BIPD protects everyone except you. That’s not a flaw — it’s what liability insurance is. But it’s why a BIPD-only policy leaves you exposed on your own equipment, your own freight and your own body.
FMCSA Minimum BIPD Limits
Your required minimum depends on what you haul and what you drive. From 49 CFR 387:
| Operation | Minimum BIPD |
|---|---|
| For-hire, non-hazardous freight, GVWR under 10,001 lbs | $300,000 |
| For-hire, non-hazardous freight, GVWR 10,001 lbs or more | $750,000 |
| Oil and certain hazardous materials, 10,001 lbs or more | $1,000,000 |
| Hazardous substances, explosives, poison gas, radioactive materials | $5,000,000 |
| Passenger carriers, 16 or more seats | $5,000,000 |
| Passenger carriers, 15 seats or fewer | $1,500,000 |
Most general freight carriers fall in the $750,000 row — and almost none of them buy $750,000.
Is $750,000 Enough?
Almost certainly not, and this is worth understanding rather than skipping.
The $750,000 figure was set decades ago and hasn’t moved. Medical costs, vehicle values and jury awards have. A serious multi-vehicle accident with injuries can exceed $750,000 without being extraordinary — and once the policy limit is exhausted, the remaining judgment follows you and your business personally.
There’s a separate practical reason: most shippers and brokers require $1 million before they’ll give you a load. You can be fully compliant with FMCSA and still unable to work.
Buy to $1 million because the market requires it. Consider excess liability above that if you run hazmat, operate in litigious jurisdictions, or have assets worth protecting.
The Filing: BMC-91X And MCS-90
This is the part most explanations skip, and it’s the part that actually activates your authority.
BIPD coverage alone doesn’t satisfy FMCSA. The filing does.
BMC-91 / BMC-91X is the form your insurer files electronically with FMCSA proving you carry the required BIPD limits. BMC-91X is the version that allows coverage split across multiple insurers. You don’t file it — your carrier or agent does, and FMCSA won’t grant active authority until they have.
MCS-90 is different, and the two get conflated constantly. It’s an endorsement attached to your policy, not a filing. It guarantees payment to an injured member of the public even when your policy wouldn’t otherwise cover the claim — an excluded driver, a lapsed condition, a coverage gap. Your insurer pays the claimant, then has the right to recover that money from you.
The MCS-90 protects the public, not you. If your insurer pays a claim under it, you owe them. People buy a policy, see the MCS-90 endorsement, and believe it’s extra coverage. It’s the opposite.
Read More About The MCS-90 Endorsement →
What to do with this: when you bind a policy, confirm the BMC-91X has actually been filed and shows on your FMCSA record. A gap between binding and filing is a gap in your authority.
BIPD And State Requirements
FMCSA limits apply to interstate operations. If you operate only within one state, your state sets the minimum, and several set it lower than the federal figure.
Practically this matters less than it sounds. Intrastate-only carriers still face the same $1 million expectation from shippers and brokers, and a lower state minimum doesn’t make a serious accident cheaper.
BIPD For Specific Operations
Leased on to a carrier? Their BIPD covers you while you’re under dispatch. You don’t need your own primary liability — you need bobtail / non-trucking liability for the gaps. Buying primary liability when you’re leased on is a duplicate.
Hauling for Amazon Relay? Amazon publishes its own requirements and they exceed FMCSA’s. Buy to the contract.
Amazon Relay Insurance Requirements →
Running hazmat? You’re in the $1 million or $5 million tier depending on what’s in the tank, and the carrier market narrows considerably.
New authority? BIPD is the first thing you buy and the reason your first-year premium looks the way it does. Most carriers won’t quote a new venture at all.
See Which Carriers Write New Authority →
Frequently Asked Questions
What Does BIPD Stand For?
BIPD stands for Bodily Injury and Property Damage. It’s the liability coverage that pays for injuries and property damage you cause to others with your commercial vehicle, and it’s what FMCSA requires for operating authority.
What Are The FMCSA Minimum BIPD Requirements?
$750,000 for for-hire carriers hauling non-hazardous freight in vehicles of 10,001 lbs or more; $300,000 below that weight; $1,000,000 for oil and certain hazardous materials; and $5,000,000 for hazardous substances, explosives and poison gas. Passenger carriers require $5,000,000 for 16 or more seats and $1,500,000 for 15 or fewer.
How Does BIPD Differ From Bobtail Insurance?
BIPD covers you while you’re operating commercially — under dispatch, hauling a load. Bobtail, or non-trucking liability, covers you when you’re driving the truck for non-business purposes and not under dispatch. If you’re leased to a carrier, their BIPD covers your dispatched miles and bobtail fills the gap. They’re not alternatives; they cover different situations.
Is BIPD The Same As Primary Liability?
Yes, in practice. Primary liability is the common name; BIPD is what it’s called on FMCSA filings and in the regulations. Different words for the same coverage.
Do I Need BIPD If I’m Leased To A Carrier?
Generally no. The motor carrier’s BIPD covers you while under dispatch, and your lease will specify that. What you need is non-trucking liability and usually occupational accident. Read the lease — the terms vary between carriers.
What Is The Difference Between BMC-91X And MCS-90?
BMC-91X is a filing your insurer submits to FMCSA proving you carry required BIPD limits — it’s what activates your authority. MCS-90 is an endorsement on your policy guaranteeing payment to injured members of the public even when the policy wouldn’t otherwise respond, with your insurer entitled to recover that payment from you. One proves coverage exists; the other protects the public at your expense.
Get BIPD Quotes
Every carrier prices BIPD differently depending on what you haul, your radius, and your driving records — and appetite for new authority varies widely. Compare several.
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