BIPD (Bodily Injury & Property Damage)
The primary liability insurance every interstate motor carrier must file with FMCSA. Minimum coverage ranges from $750,000 for general freight to $5,000,000 for certain hazmat. CarrierOk shows current BIPD coverage amounts, insurer names, policy numbers, and effective dates via API.
Definition
Bodily Injury and Property Damage (BIPD) insurance is the mandatory liability coverage that motor carriers must maintain as a condition of active FMCSA operating authority. BIPD protects third parties — other drivers, passengers, and property owners — injured or damaged by the carrier's operations. FMCSA sets minimum coverage levels based on the type of cargo transported: $750,000 for carriers hauling general (non-hazardous) freight, $1,000,000 for carriers transporting oil and certain commodities, and $5,000,000 for carriers hauling specific hazardous materials. These minimums have not been updated since 1985 and are widely considered inadequate given current medical costs and nuclear verdict trends. Insurance companies file Form BMC-91 (surety bond) or BMC-91X (trust fund) with FMCSA to certify coverage. When a BIPD policy lapses or is cancelled, FMCSA can revoke the carrier's operating authority. CarrierOk tracks BIPD filings in real time and alerts subscribers to coverage changes, cancellations, and carriers operating below required minimums.
Why It Matters
For Underwriters
BIPD filing status is the first thing to verify at renewal — a gap in coverage history or a carrier operating at bare minimums signals either financial stress or inadequate risk management.
For Brokers
Verifying active BIPD coverage before load tender is non-negotiable — if the carrier's policy lapsed even yesterday, you're exposed to direct liability in a nuclear verdict scenario.
For Developers
Use insurance_bipd_on_file and insurance_bipd_required fields to build automated compliance gates that reject carriers with insufficient or lapsed coverage at onboarding.
Key Values
| General Freight Minimum | $750,000 |
| Oil Transport Minimum | $1,000,000 |
| Hazmat Minimum | $5,000,000 |
| Filing Form | BMC-91 / BMC-91X |
In the API
/v2/profileRelated Fields
insurance_bipd_on_fileinsurance_bipd_requiredinsurance_cargo_on_fileinsurance_cargo_requiredinsurance_bond_on_fileFrequently Asked Questions
What is the minimum BIPD insurance for trucking companies?
The minimum depends on cargo type. General freight carriers must carry at least $750,000 in BIPD coverage. Carriers transporting oil need $1,000,000, and certain hazardous materials carriers need $5,000,000. These minimums were set in 1985 and have not been adjusted for inflation, which is why many carriers voluntarily carry higher limits.
What happens if a carrier's BIPD insurance lapses?
When BIPD coverage lapses, the insurer files a cancellation notice with FMCSA. After a 30-day grace period, FMCSA revokes the carrier's operating authority if replacement coverage isn't filed. During the lapse, the carrier is legally unable to operate as a for-hire carrier. CarrierOk detects these changes same-day and can alert your team via webhook or email.
What is the difference between BIPD and cargo insurance?
BIPD covers third-party injuries and property damage caused by the carrier's operations — it protects other people on the road. Cargo insurance covers the freight being transported — it protects the shipper's goods. Both are separate filings with FMCSA, and a carrier may be required to maintain both depending on their authority type and the commodities they haul.
Related Terms
Cargo Insurance
Insurance that protects the value of goods in transit against damage, theft, or loss. Unlike BIPD (which covers third-party liability), cargo insurance covers the freight itself. FMCSA requires minimum cargo coverage for certain authority types. CarrierOk reports cargo insurance amounts and insurer details via API.
Operating Authority
FMCSA-granted permission for a motor carrier, broker, or freight forwarder to operate in interstate commerce. Authority types include common (general for-hire), contract (specific shippers), and broker. CarrierOk tracks authority status changes same-day and alerts subscribers when a carrier's authority lapses or is revoked.
Nuclear Verdict
A jury award in a trucking accident lawsuit that dramatically exceeds compensatory damages, often surpassing $10 million. Nuclear verdicts have reshaped trucking insurance economics, with average verdicts above $20 million. Courts increasingly hold brokers and shippers liable for negligent carrier selection — making data-driven vetting with tools like CarrierOk essential.