Insurance Glossary

Bodily Injury (BI)

Coverage that pays for injuries to other people caused by the insured driver in an accident. Required by FMCSA for all motor carriers operating in interstate commerce.

Cargo Insurance

Covers the freight or goods being transported. Protects against loss or damage to the cargo while in transit. Often required by brokers and shippers.

Certificate of Insurance (COI)

A document that provides evidence of insurance coverage. Issued to third parties (brokers, shippers, factoring companies) to prove the carrier has active insurance.

Combined Single Limit (CSL)

A single dollar amount that covers both bodily injury and property damage liability in a single accident, rather than separate limits for each.

Commercial Auto

Insurance coverage for vehicles used for business purposes. Trucking insurance is a type of commercial auto insurance.

Contingent Cargo

Backup cargo coverage that kicks in when the primary cargo carrier's insurance fails to pay a claim. Often required by freight brokers.

DOT Number

A unique identifier assigned by the FMCSA to commercial motor carriers operating in interstate commerce. Required for all trucks crossing state lines.

Downpayment

The initial payment made by the client to bind (start) an insurance policy. Typically 10–25% of the annual premium.

E-Sign

Electronic signature. Used to sign insurance applications and binding documents digitally. I4T uses esignatio.com for e-sign.

Effective Date

The date on which an insurance policy begins. Coverage does not apply before this date.

Federal Filing (Form E)

A filing made with the FMCSA that proves a carrier has the required minimum liability insurance. Required for all interstate motor carriers.

FMCSA

Federal Motor Carrier Safety Administration. The federal agency that regulates commercial motor carriers in the US. Manages DOT numbers, safety ratings, and insurance filings.

IFTA

International Fuel Tax Agreement. A tax collection agreement between US states and Canadian provinces for fuel used by commercial vehicles. IFTA reports are used to verify mileage and routes.

Liability Insurance

Coverage that pays for damages or injuries you cause to others. The minimum required for commercial trucking is $750,000 CSL for most cargo types.

Loss Runs

A report from an insurance company showing the claims history for a policy. Required by most carriers when quoting. Typically covers the last 3–5 years.

MCS-90

A federal endorsement attached to trucking insurance policies that provides a financial guarantee to the public that the carrier has the required minimum liability coverage.

Motor Truck Cargo (MTC)

Insurance that covers the freight or goods being transported by the insured. Protects against loss or damage to the cargo.

MVR

Motor Vehicle Record. A report from the DMV showing a driver's license history, violations, and accidents. Required by all carriers for all drivers.

New Venture

A trucking company that has been in business for less than 1–2 years. New ventures are considered higher risk and may be harder to place with standard carriers.

Non-Trucking Liability (NTL)

Coverage for owner-operators when they are using their truck for personal use (not under dispatch). Also called 'bobtail' insurance.

Owner-Operator

A truck driver who owns their own truck and operates as an independent contractor. They may lease to a carrier or operate under their own authority.

P&C License

Property & Casualty insurance license. Required to sell commercial trucking insurance. Must be obtained in each state where you sell.

Physical Damage

Coverage for the insured's own truck. Includes Collision (damage from accidents) and Comprehensive (damage from non-collision events like theft, fire, or weather).

Premium

The amount the client pays for insurance coverage, typically expressed as an annual amount. Clients often pay in installments (monthly or quarterly).

Primary Liability

The main liability coverage required for commercial trucking. Covers bodily injury and property damage to others. Minimum $750,000 CSL for most cargo types.

Property Damage (PD)

Coverage that pays for damage to other people's property caused by the insured driver in an accident.

Renewal

The process of continuing an insurance policy for another term (usually 1 year) after the current term expires. Carriers send renewal quotes 60–90 days before expiration.

SAFER

Safety and Fitness Electronic Records. The FMCSA's online database for looking up carrier information, safety ratings, and insurance filings by DOT number.

Secondary Market

Insurance carriers and programs that cover risks that don't qualify for standard (primary) markets. Usually more expensive but more flexible on underwriting.

Underwriting

The process by which an insurance company evaluates a risk and decides whether to offer coverage and at what price. Factors include driving record, claims history, cargo type, and years in business.