Financial Responsibility:

Some carriers that transport Hazardous Materials (HM) in interstate commerce are not identifying themselves as such on the MCS-150 and are not maintaining proper level of public liability insurance. Motor carriers that transport vehicles, as defined in 49CFR 171.8 and listed in 49 CFR 172.101 are considered a HM carrier and must maintain the minimum level of financial responsibility regardless of their operation type (ie car hauler, household goods movers).

Carriers should not confuse exceptions noted in the HM regulations with Part 387 (Insurance) requirements. Even though motor vehicles are excepted from certain requirements of the HM regulations (marking, labeling, shipping papers) they are not excepted from Part 387 insurance requirements because they are still considered a Hazardous Material. Therefore, carriers that transport autos, internal combustion engines, self-propelled vehicles, mechanical equipment containing internal combustion engines and battery powered equipment as defined in 171.8 and listed in 172.101 are considered a HM motor carrier.

The regulations in Part 387 state that any amount of HM transported in interstate commerce requires a minimum of $1,000,000 in public liability insurance. The FMCSA system is designed to identify the proper amount of insurance required once the company’s MCS-150 is completed properly.

To summarize:

  1. Carriers that transport motor vehicles, as defined in 171.8 and listed in 172.101 of the Hazardous Material Regulations are considered Hazardous Material (HM) carriers and must:
  2. Maintain $1,000,000 public liability insurance.
  3. Update their MCS-150 to show the types of HM transported.
  4. For example: If you transport “motor vehicles” as the cargo you would also check HM category Class 9 on the MCS-150 (or update this information on-line).
  5. If transporting for-hire they must file appropriate amount of insurance with the FMCSA Licensing and Insurance system.
  1. Examples of motor vehicles that are considered HM:
  2. Internal combustion engines
  3. Self-propelled vehicles
  4. Mechanical equipment containing internal combustion engines – ie generators, etc.
  5. Battery powered vehicles or equipment

Note: Some types andquantities of HM require more than $1,000,000 in public liability. See regulation at 387.9 for details or contact the FMCSA should you have questions. Motor vehicles defined in 171.8 will normally only require $1,000,000.

Definitions and interpretations:

Motor vehicle includes a vehicle, machine, tractor, trailer or semitrailer, or any combination thereof, propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. It does not include a vehicle, locomotive, or car operated exclusively on a rail or rails, or a trolley bus operated by electric power derived from a fixed overhead wire, furnishing local passenger transportation similar to street-railway service. Definitions: 171.8

Interpretations Part 387

*Question 7:Are motor carriers transporting HM that are covered under exceptions to the HMRs subject to financial responsibility regulations?

Guidance: Yes. Even though an HM may be covered under a packaging, placarding, transportation, or other exception to the HMRs, if the item meets the definition of a hazardous material per 49 CFR171.8, it is still considered HM for the purposes of Part 387. The motor carrier must still provide for financial responsibility at the appropriate level for the commodity being transported.

*Question 8:Are motor vehicles being transported considered to be HM for purposes of the financial responsibility requirements, thus requiring the higher limits set forth in the regulations?

Guidance: Yes. Even though vehicles being transported by motor vehicle are subject only to 49 CFR 173.220 of the HMRs, they meet the definition of “Hazardous material” in 49 CFR 171.8 because “Vehicle, flammable gas powered” and “Vehicle, flammable liquid powered” are designated as hazardous in 49 CFR 172.101 [UN 3166]. For that reason, vehicles transporting other vehicles would have to carry $1,000,000 of public liability insurance.