Insurance and Surety Bond Requirements
Insurance
All operating authority types, except for brokers, are required to keep proof of insurance on file with DMV's Motor Carrier Services. Your certificate or permit may be revoked if you fail to keep the proof of insurance on file.
The amount of the insurance will depend on the type authority you hold and for passenger carriers the seating capacity of the vehicle. The following chart contains information on the minimum liability insurance amounts for each authority type.
| Operating Authority Type | Minimum Insurance Amounts |
|---|---|
| Transportation of Passengers Broker Transportation of Property Broker |
Not Applicable |
| Bulk Property Carrier | $750,000 Bodily Injury and Property Damage |
| Common Carrier - Regular Routes Contract Passenger Carrier Employee Hauler Sight Seeing Carrier |
Bodily Injury and Property Damage
(Passengers include driver) $350,000 - 1 to 6 passengers $1,500,000 - 7 to 15 passengers $5,000,000 - 16 or more passengers |
| Household Goods Carrier Property Carrier |
$750,000 Bodily Injury and Property Damage $50,000 Cargo |
| Common Carrier - Irregular Routes | Bodily Injury and Property Damage (Passengers include driver) $350,000 - 1 to 6 passengers $1,500,000 - 7 to 15 passengers |
| Non-Profit/Tax-Exempt Passenger Carrier | Bodily Injury and Property Damage (Passengers include driver) $1,500,000 - 7 to 15 passengers $5,000,000 - 16 or more passengers |
| Taxicab | $125,000 Bodily Injury and Property Damage |
Surety Bond/Irrevocable Letter of Credit
Certain authority types are required to file a surety bond or an irrevocable letter of credit with DMV's Motor Carrier Services. The bond/letter of credit is to protect the public from any potential loss or damage associated with the services you provide. Your certificate or license may be revoked if you fail to keep the surety bond or irrevocable letter of credit on file.
The amount of the bond/letter of credit depends on the type of authority you obtain. The length of time that you must keep the bond/letter of credit on file also depends on the type of authority you obtain.
The following chart contains information on the minimum bond/letter of credit amounts and the length of time it must be maintained for each authority type.
| Operating Authority Type | Minimum Amount | Required Filing Period |
|---|---|---|
| Transportation of Passengers Broker
Transportation of Property Broker |
$25,000 | Continuously |
| Household Goods Carrier | $50,000 | 5 years from the date the certificate is issued |
| Common Carrier - Irregular Routes
Common Carrier - Regular Routes Contract Passenger Carrier Sight Seeing Carrier |
$25,000 | 3 years from the date the certificate is issued |
| Bulk Property Carrier
Employee Hauler Non-Profit Tax-Exempt Passenger Carrier Property Carrier Taxicab |
none | not applicable |
Orders of Suspension and Revocation
If your insurance or performance bond is being cancelled or is expiring, you will be issued an order of suspension. If you don't comply with the suspension, an order of revocation will be issued. If you do not comply with the revocation, you will have to reapply for original operating authority and comply with all of the qualification requirements.
Compliance requirements include:
- having an insurance company file proof of insurance (for certain authority types),
- having a surety bond filed (for certain authority types), and
- paying the $50 reinstatement fee, and
- paying the $500 statutory fee, if the proof of insurance shows there was a lapse in coverage (no penalty fee for performance bonds), or
- submitting a written request to cancel your operating authority, and
- surrendering all operating authority decals, registration documents, and for-hire license plates, or
- requesting an administrative hearing.