Cargo Insurance Requirement for Household Good Carriers and Freight Forwarders
As of March 21, 2011, only household goods (HHG) carriers and HHG Freight Forwarders need to have evidence of cargo insurance on file with FMCSA (Federal Motor Carrier Safety Administration).
While FMCSA has not required such a filing, numerous non-HHG carriers have filed cancellations of their cargo insurance with FMCSA effective March 21, 2011.
The carriers’ cancellation notices triggered system-generated letters to these carriers indicating that FMCSA would revoke their authority within 30 days of the service date of the letter.
FMCSA clarifies that non-HHG carriers and non-HHG freight forwarders who have received Notices of Investigation for Revocation of Authority based on the termination of cargo insurance on or after March 21, 2011 need not respond to such letters if they have a service date of February 19, 2011 or after.
FMCSA will not revoke the operating authority of non-HHG carriers and non-HHG freight forwarders whose cargo insurance expires on or after March 21, 2011.
The agency is taking corrective measures to alert carriers