Short answer
Brokers ask for $1,000,000 because the federal $750,000 minimum is a floor, and the broker can be sued alongside the carrier after a serious crash. In May 2026 the U.S. Supreme Court held that negligent-selection claims against brokers are not preempted by federal law, so brokers have more reason to screen limits and safety records.
- The requirement is contractual, not federal. It lives in the broker-carrier agreement and onboarding rules.
- Some contracts ask for more than $1,000,000, which is usually met with an umbrella or excess policy over the primary.
The gap between the law and the contract
49 CFR 387.9 requires $750,000 of public liability for for-hire carriers of general freight in trucks of 10,001 pounds or more. That is the number FMCSA needs before it grants authority. It is not the number a broker needs before it tenders a load.
Many broker-carrier agreements set the auto liability requirement at $1,000,000, and onboarding platforms check the certificate against that number. If your certificate shows $750,000, the packet gets flagged no matter what FMCSA shows. Our carrier packet rejected page covers the other common flags.
How a trucking liability tower stacks
Why brokers care: they can be sued too
When a truck causes a serious crash, plaintiffs often name everyone connected to the load, including the broker that picked the carrier. For years brokers argued that federal law (the FAAAA, 49 U.S.C. 14501) preempted state negligent-selection claims. On May 14, 2026, in Montgomery v. Caribe Transport II, No. 24-1238, the U.S. Supreme Court held that a claim that one company negligently hired another to transport goods is not preempted, because states keep their safety authority "with respect to motor vehicles."
The practical effect for carriers: brokers have more reason to look hard at your limits, your safety record, and your CSA data before giving you freight. A higher liability limit on the carrier's policy is one of the few things a broker can check quickly. The ruling's details are legal questions, so have an attorney review any contract language that shifts liability to you.
How $1,000,000 usually gets built
- $1,000,000 primary auto liability. The most common setup. One policy, one limit, shown as a combined single limit on the certificate.
- Primary plus umbrella or excess. For contracts asking for $2,000,000 or more, a trucking umbrella sits over the primary. Check that the certificate shows both and that the umbrella follows the primary's insureds.
- Endorsements. Brokers may also ask to be listed as certificate holder or additional insured. See certificate holder vs additional insured.
The FMCSA filing still shows the federal minimum certified by your insurer, even when your policy limit is higher. Brokers read the certificate for the actual limit.
| Federal minimum | Typical broker contract | |
|---|---|---|
| Where it comes from | 49 CFR 387.9 | Broker-carrier agreement and onboarding rules |
| General freight, truck 10,001 lb or more | $750,000 | Often $1,000,000 |
| How it is checked | BMC-91X filing with FMCSA | Certificate of insurance, sometimes the policy |
| Higher limits | Not required | Sometimes required, usually met with umbrella or excess |
What to do if your limit is short
Raising a limit mid-term is usually an endorsement, not a new policy, but underwriters will re-rate. If a broker wants $1,000,000 and you have $750,000, ask for a quote on both the higher primary limit and a primary-plus-excess structure. Then confirm the new limit shows on a fresh certificate before you re-submit the packet. Read the full insurance section of the agreement first: see broker-carrier agreement insurance requirements and what is a broker-carrier agreement.
Common questions
Is $1 million required by law?
Not for general freight. The federal minimum is $750,000 for for-hire trucks of 10,001 lb or more. The $1,000,000 figure comes from contracts.
Will an umbrella satisfy a $1 million broker requirement if my primary is $750,000?
Some brokers accept a combined primary and excess total, others require the primary itself to be $1,000,000. The agreement controls, so read it or ask before you buy.
Does the Supreme Court ruling make brokers automatically liable?
No. The Court addressed preemption, meaning whether the claim can proceed. Whether a broker is liable in a given case depends on the facts and state law. Ask an attorney about specific contracts.
Sources
- 49 CFR 387.9, Financial responsibility, minimum levels (eCFR). $750,000 federal minimum for non-hazardous for-hire carriage.
- Montgomery v. Caribe Transport II, LLC, No. 24-1238 (U.S. May 14, 2026), slip opinion. Holding that negligent-hiring claims against brokers are not preempted by the FAAAA.
- FMCSA, Insurance Filing Requirements. What FMCSA requires on file versus contract requirements.
This page explains insurance, not law. Have your attorney review indemnity and contract language; our job is making the insurance match it.
Keep reading
Contracts and deadlines
A broker sent me a carrier agreement. What insurance does it actually require?
Contracts and deadlines
The broker rejected our carrier packet because of insurance. What now?
Coverage
Primary truck liability: what it covers, what the law requires, and where it breaks
Coverage
Trucking umbrella and excess liability: the limits above your primary auto policy
Questions
What are the FMCSA minimum insurance limits for trucks?