The FMCSA takes its role as regulator and enforcer of financial responsibility by commercial motor carriers very seriously. In the world according to FMCSA, “financial responsibility” means having tons of the right truck insurance coverage for the commercial carrier’s particular business so that the American public is protected from injury (and even fatalities), property damage and environmental damage caused by commercial motor vehicles (CMVs). Basically, it’s all about the trucking company’s liability in the event it is responsible for an accident causing injury and/or death or property damage and for causing any damage to public property or the environment.

In one of their Power Point presentations, the FMCSA defines “financial responsibility” as “Having insurance policies or surety bonds sufficient to satisfy the minimum public liability requirements.” In addition, FMCSA decides what those trucking minimum public liability requirements are. They vary according to the kind and amount of cargo carried, the size and weight of the CMV and trailers in question, and the rating and classification of the company by FMCSA.

It defines public liability as “liability for bodily injury, property damage and environmental restoration.” In the case of damage to the environment or public property, the FMCSA requires “Environmental restoration [which] means restitution for the loss, damage, or destruction of natural resources arising out of an accidental discharge of toxic or other environmentally harmful materials or liquids.” The “proof” of financial responsibility, which are the properly filled out and signed FMCSA forms with the insurance policies attached to it, must be kept 1) at the trucking company’s place of business and 2) in each CMV the company owns, leases or operates.

The FMCSA has a zero tolerance and take-no-prisoners attitude toward non-compliances. No insurance is a big no-no, no excuses. Any company caught without the proper proof in the proper places is subject to an $11,000 fine, and if the violation is a continuing one, each day the company is in violation it will be assessed another $11,000 penalty and possibly other fines and penalties. Any CMV attempting to enter the US without the proper forms and documentation of the truck insurance policy in its possession will be denied entry into the US. The regulations do provide for penalties that fall short of putting a company out of business, provided the violations are not knowingly repeated and egregious. The minimum levels of insurance according to the nature of a trucking company’s equipment and the nature of its business are available