The Federal Motor Carrier Safety Administration (“FMCSA”) announced on June 22nd that it is eliminating the requirement for most for-hire motor common carriers of property and freight forwarders to maintain cargo insurance in prescribed minimum amounts. In addition these groups will no longer by required to file evidence of this insurance with FMCSA. These changes are to go into effect starting March 21, 2011.
Note that the new rule does not apply to household goods carriers and freight forwarders, however. The only shippers that FMCSA considered in need of the protection provided by the cargo insurance requirement are individuals who arrange to move their own household goods. FMCSA concluded that such individuals are less knowledgeable about carrier liability requirements and need the protection afforded by the existing regulations.