Tanker and hazmat truck insurance

The federal minimums for hazardous materials

FMCSA’s schedule of limits (49 CFR 387.9) sets these minimums for vehicles rated 10,001 lbs GVWR or more — and, unlike the $750,000 general freight tier, they apply to private carriers as well as for-hire:

$5,000,000

Interstate, foreign or intrastate: hazardous substances transported in bulk in cargo tanks, portable tanks or hopper-type vehicles; bulk Division 1.1, 1.2 or 1.3 explosives; bulk Division 2.3 Hazard Zone A or Division 6.1 Packing Group I Hazard Zone A material; bulk Division 2.1 or 2.2 gas; highway route controlled quantities of Class 7 radioactive material.

$1,000,000

Oil and other hazardous materials, substances and wastes not on the $5 million list — in any quantity in interstate commerce, and in bulk only in intrastate commerce.

Under 10,001 lbs GVWR

$5,000,000 in interstate commerce for bulk Division 1.1–1.3 explosives, bulk Zone A poison inhalation materials or highway route controlled quantities of radioactive material.

“In bulk” means containment systems of more than 3500 water gallons — but any quantity of Division 1.1–1.3 explosives or of Zone A Division 2.3 and 6.1 materials counts as bulk (49 CFR 387.5). This federal subpart does not apply to non-bulk hazardous materials moved in intrastate commerce, except highway route controlled quantities of radioactive material (49 CFR 387.3).

The public liability these minimums secure includes environmental restoration: restitution for damage to natural resources from a spill of the cargo, including the cost of removal and of measures to limit harm to health and the environment (49 CFR 387.5).

Safety permit, PHMSA registration and placards

• Hazmat safety permit. FMCSA requires one, in interstate or intrastate commerce, for highway route controlled quantities of radioactive material; more than 25 kg (55 lbs) of Division 1.1–1.3 explosives, or placardable amounts of Division 1.5; more than one liter per package of Zone A poison inhalation material; Zone B poison inhalation material in bulk packaging; Zone C or D in packaging of 3500 gallons or more; and methane or natural gas (compressed or refrigerated liquid) in bulk packaging of 3500 gallons or more (49 CFR 385.403).
• PHMSA registration. Anyone who offers or transports certain hazardous materials must register with PHMSA and pay a fee — including any quantity that requires placards (with an exception for farmers’ own operations), bulk packaging of 3500 gallons or more for liquids or gases (or more than 468 cubic feet for solids), and 5,000 lbs or more of one placarded class in non-bulk packaging (49 CFR 107.601).
• Placards. Required for any quantity of the materials in Table 1 of 49 CFR 172.504. For Table 2 materials, a vehicle with less than 1,001 lbs aggregate gross weight needs no placards — unless the materials are in bulk packaging.

Hauling only inside one state? FMCSA still requires a USDOT number from intrastate hazmat carriers that haul the types and quantities requiring a safety permit.

Drivers: tank and hazmat endorsements

• Tank vehicle endorsement — for a commercial motor vehicle designed to carry liquid or gas in a tank of more than 119 gallons, with 1,000 gallons or more in total, whether the tank is permanently or temporarily attached (49 CFR 383.5, 383.93).
• Hazardous materials endorsement — for vehicles carrying hazmat that must be placarded. A state may issue or renew it only after the TSA determines the driver is not a security threat, or if the driver holds a valid TWIC, and it must be renewed at least every 5 years (49 CFR 383.93, 383.141).
• CDL at any weight — a vehicle of any size that carries placarded hazardous materials is a Group C commercial motor vehicle, so its driver needs a CDL (49 CFR 383.5).

Coverage to check for tanker and hazmat work

• Primary auto liability — at the $1,000,000 or $5,000,000 level your commodities require, with the MCS-90 endorsement.
• Pollution and clean-up — ask how the policy responds to a spill and its clean-up, and where any separate pollution coverage starts.
• Cargo — for the product itself; check commodity exclusions and whether contamination of a load is covered.
• Physical damage — for the tractor and the tank trailer; a lender with a lien will require it.

States set their own limits for intrastate hazmat — see, for example, the Texas, Arizona and Tennessee guides.

Quote checklist for hazmat carriers

• USDOT and MC numbers, and your hazmat safety permit and PHMSA registration if you need them.
• Commodities with hazard class and division, bulk or non-bulk, and typical quantities per load.
• Tractor and trailer VINs, tank specification and capacity, and values.
• Drivers’ CDL endorsements, years of experience and records.
• Loss runs from recent insurers, including any spill or contamination claims.