How to Prepare Certificates of Insurance for Carriers, Brokers and Shippers

Preparing accurate, audit-ready Certificates of Insurance (COIs) is a critical compliance and commercial activity for trucking and logistics companies. This guide walks through federal and state requirements, required endorsements and wording, step‑by‑step COI preparation for carriers, brokers and shippers in the United States—plus practical templates, pricing expectations and common pitfalls.

Quick overview: Why COIs matter for trucking & logistics

• Regulatory proof: COIs (and policy endorsements such as the MCS-90) demonstrate compliance with FMCSA and state financial responsibility rules.
• Commercial protection: Shippers and brokers use COIs and additional insured endorsements to manage risk and transfer liability expectations.
• Audit readiness: Customers and regulators audit COIs during safety reviews, tender qualification or claims.

Authoritative sources:

• FMCSA insurance & financial responsibility pages: https://www.fmcsa.dot.gov/regulations/insurance/insurance-requirements
• Insurance Information Institute, commercial auto basics: https://www.iii.org/article/commercial-auto-insurance-basics
• Progressive Commercial trucking cost guidance: https://www.progressivecommercial.com/business-insurance/trucking/how-much-does-truck-insurance-cost/

Federal minimums and required endorsements (what to include on COI)

The FMCSA sets minimum financial responsibility levels for interstate carriers (49 CFR Part 387). Common thresholds you will see on COIs include:

Notes:

• Exact limits depend on commodity class, vehicle use (private vs. for‑hire) and shipment quantity. Always verify the precise limit required for your operation using the FMCSA link above.
• MCS‑90 endorsement is required when a motor carrier’s auto liability policy is used to meet FMCSA financial responsibility. The MCS‑90 obligates the insurer to pay certain judgments arising from accidents involving public liability.
• Common endorsements you must be able to show on a COI or policy binders: MCS‑90, additional insured wording, waiver of subrogation (when contractually required), and policy form/limits.

See also: FMCSA Insurance Requirements Explained for Trucking and Logistics Insurance Buyers

Step‑by‑step: Preparing a compliant COI for carriers, brokers and shippers

1. Collect transaction specifics

   • Parties: Named insured (carrier), certificate holder (broker or shipper), and any additional insureds.
   • Cargo/classification, origin/destination, and whether freight is hazardous.
   • Required limits and endorsements spelled out in the contract or rate confirmation.

2. Confirm policy details

   • Insurer name, policy number, effective/expiration dates.
   • Liability limits (per occurrence and aggregate).
   • Ensure MCS‑90 is attached (for interstate carriers) and that the insurer name on the policy is FMCSA‑approved.

3. Add required endorsements and contract wording

   • Additional Insured: add the exact contract language required by the shipper/broker.
   • Waiver of subrogation: only if the carrier’s insurer agrees and state law allows.
   • Include policy forms (auto liability, cargo, physical damage) as requested.

4. Issue the COI (ACORD 25 is standard)

   • Use ACORD 25 or insurer’s COI form. Populate with:
     • Named insured, DBA if applicable, mailing address.
     • Policy coverages and limits.
     • Description of operations (include motor carrier MC/DOT number).
     • Certificate holder section with full legal name and address.
     • Specific endorsement language or reference attachments.

5. Deliver and archive

   • Deliver to broker/shipper via email or certificate management platform.
   • Save PDF and underlying policy documents for audits (recommended retention: 7 years).

Practical tip: Include the carrier’s USDOT number and MC number (if applicable) on the COI. Customers and regulators commonly search by DOT/MC number.

State filings, BMC-91/BMC-91X alternatives and intrastate nuances

• Interstate carriers rely upon FMCSA requirements and endorsements such as MCS‑90. Some historically used forms (BMC‑91/BMC‑91X) have been superseded or replaced in many processes—see state-specific guidance.
• Intrastate carriers (operating solely within one state) must meet that state’s financial responsibility rules and file with state agencies; requirements differ widely (California, Texas and Florida are notable for additional intrastate compliance steps).
• Always confirm state-specific proof-of-financial-responsibility and filing processes before issuing a COI for intrastate moves.

Further reading:

• State Filings and BMC-91/BMC-91X Alternatives: Proof of Financial Responsibility for Trucking

How brokers and shippers should request and manage COIs

• Standardize COI language in contracts: require carrier DOT/MC number, minimum limits, MCS‑90, and any additional insured/waiver language.
• Use certificate tracking platforms (e.g., myCOI, CertFocus, Origami Risk) to automate expirations and ensure continuous coverage. Typical platform subscription ranges are widely varied but commonly start around $50–$300/month for small fleets and scale higher for enterprise solutions.
• Accept only primary written evidence (COI referencing policy and endorsements), not screenshots or photocopies of partial documents.
• If a carrier cannot produce required limits or endorsements, do not accept an insurer letter—insist on the policy endorsement or COI referencing the actual endorsement.

See also: How Brokers and 3PLs Should Manage Certificates of Insurance and Hold Harmless Clauses

Pricing expectations for carriers (what owners/operators commonly pay)

Insurance premiums vary by equipment, cargo type, driving records and location. Representative ballpark ranges (U.S., 2023–2024 market conditions):

• Small owner‑operators (private passenger/non-hazardous freight): $6,000–$15,000 per year for primary liability (varies by state and driving/claims history).
• For‑hire long‑haul heavy haulers (higher exposure): $15,000–$40,000+ per year.
• Hazmat or specialty commodity carriers often pay substantially more—limits and endorsements can increase premiums into the six-figure range for fleets.

Carrier examples:

• Progressive Commercial: offers competitive owner‑operator programs; their public guidance shows significant range depending on risk class—review their tools for real quotes: https://www.progressivecommercial.com
• Large national insurers in trucking: Great West Casualty, Travelers, CNA and Berkshire Hathaway Homestate offer specialized programs; pricing depends on underwriting.

Source summaries:

• Progressive trucking cost guidance: https://www.progressivecommercial.com/business-insurance/trucking/how-much-does-truck-insurance-cost/
• Insurance Information Institute overview: https://www.iii.org/article/commercial-auto-insurance-basics

Common COI pitfalls and how to avoid them

• Missing MCS‑90 or incorrect insurer name — invalidates interstate proof. Remedy: verify endorsement attached to policy.
• Vague additional insured wording — use precise contract language required by the shipper.
• Allowing short-term lapses — implement automatic reminders via a COI management platform.
• Accepting non‑primary wording (i.e., insurer provides a “non‑primary” endorsement when primary coverage is required) — confirm primary status in writing.

For audit readiness and regulatory reviews, see: Audit-Ready Insurance Documentation: Tips to Pass Regulatory and Customer Reviews

Sample COI checklist (quick reference)

• Carrier legal name, DBA, DOT/MC number — included
• Policy number(s) and effective/expiration dates — included
• Liability limits match contractual and FMCSA requirements — verified
• MCS‑90 endorsement attached or referenced — yes
• Additional insured wording matches contract — exact phrase included
• Waiver of subrogation (if required) — insurer approval documented
• Certificate holder legal name and address — correct
• PDF of COI and endorsements saved in document management system — archived

Closing: Practical next steps for carriers, brokers and shippers in the USA

• Verify the FMCSA limits and endorsement requirements for your commodity and routes (interstate vs intrastate). FMCSA guidance: https://www.fmcsa.dot.gov/regulations/insurance/insurance-requirements
• Use standardized COI language in all carrier agreements and automate certificate collection/renewals.
• If unsure about state filings, consult a transportation insurance broker or coverage counsel—state requirements can differ substantially in California (Los Angeles), Texas (Dallas/Houston) and Florida (Miami) markets.

Further regulatory guidance and topic deep dives:

• Required Endorsements and Endorsement Wording Every Carrier Must Carry
• Compliance Checklist: Documents, Filings and Coverages for Interstate and Intrastate Carriers
• State Filings and BMC-91/BMC-91X Alternatives: Proof of Financial Responsibility for Trucking