What a COI Shows (and What It Doesn't)
A Certificate of Insurance is issued by a carrier's insurance agent on a specific date. It lists policy numbers, coverage limits, and expiration dates. That's valuable—but it's a point-in-time snapshot. A COI dated December 15 says nothing about whether that policy is still in force on January 15, whether the carrier paid their premium, or whether a claim was filed that might have exhausted coverage limits.
For that reason, you can't rely solely on a COI. You must verify the document independently against the carrier's FMCSA (Federal Motor Carrier Safety Administration) insurance filings. That's the only way to confirm coverage is active right now.
Minimum Insurance Requirements
| Coverage Type | Federal Minimum | Recommended Minimum | Notes |
|---|---|---|---|
| Auto Liability | $750K (property carriers) $5M (hazmat) |
$1M (property) $5M (hazmat) |
Covers bodily injury and property damage caused by the carrier |
| Cargo Coverage | No federal minimum | $100K | Essential for protecting your freight; insures your goods in the carrier's custody |
| General Liability | No federal minimum | $1M | Protects against premises liability and non-vehicle claims |
| Worker's Comp | Varies by state | Meets state requirement | Required in most states; check your specific state rules |
How to Verify a COI in 10 Minutes
Request COI Directly from the Carrier, Not the Broker
If you're working with a freight broker, ask them for a COI from the carrier itself. Don't accept a broker's certificate as proof of the carrier's coverage. The carrier's insurance agent should be the one providing the original document.
Verify Policy Numbers Against FMCSA L&I Portal
Go to li-public.fmcsa.dot.gov, search the carrier by USDOT number, and compare the policy numbers listed there with those on the COI. They must match exactly. If they don't, the COI may be outdated or fraudulent.
Check Policy Expiration Dates
Look at the expiration date on the COI. If it's within 30 days, request an updated certificate. Carriers are required to have continuous coverage; a lapsed policy is a red flag that the carrier may be operating illegally.
Confirm Cargo Coverage Limits Match Shipment Value
Cross-reference the cargo liability limit on the COI with your shipment value. If your freight is worth $150K and the carrier only has $50K cargo coverage, you're underinsured. Request a carrier with higher limits or obtain inland marine insurance to bridge the gap.
Request Certificate with Your Company Named as Additional Insured
For high-value shipments, ask the carrier's insurance agent to issue a revised COI naming your company as an "additional insured." This ensures you can make a claim directly against their policy if something goes wrong, without going through the carrier first.
Red Flags on a COI
- Expiration within 30 days: A lapsed policy means the carrier is operating without active coverage.
- Cargo coverage below $100K: Inadequate for most LTL shipments; a sign the carrier cuts corners on risk management.
- Auto liability below $1M: Indicates a smaller, less-vetted operation.
- Policy issued by an unfamiliar or unlicensed insurer: Verify the insurance company exists and is licensed in your state.
- COI provided by a broker, not the carrier: Brokers sometimes provide generic or outdated certificates; always verify with the carrier directly.
- Missing endorsement for your company: If you require additional insured status, a COI without it is incomplete.
The FMCSA L&I Portal: Your Verification Source
The FMCSA maintains a public database of all insurance filings. Here's how to use it:
- Visit li-public.fmcsa.dot.gov (no login required)
- Search by USDOT number (usually printed on the COI, or ask the carrier)
- Look for the carrier's current insurance filings under "MCS-90" (evidence of insurance form)
- Verify policy numbers, carriers, and effective dates match the COI
- Check the "status" field—it should show "active," not "inactive," "lapsed," or "cancelled"
If the portal shows a policy that's lapsed or cancelled, the carrier is no longer operating legally. Do not tender freight to them.
High-Value Shipments on I-95
For cargo valued above $50K moving through the I-95/I-85 Southeast corridor, require a Certificate of Insurance that names your company as additional insured. Contact the carrier's insurance agent directly (not the carrier's operations team) to request this endorsement. Verify the revised COI against the FMCSA database before tenduring the load. This protects you in the event of damage, theft, or loss—you can claim directly against the carrier's policy without waiting for the carrier to file a claim on your behalf.
What to Do If Coverage Is Insufficient or Lapsed
If you discover a carrier's insurance is inadequate or expired:
- Do not tender the shipment. Find an alternative carrier immediately.
- Document what you found. Note the carrier's name, USDOT number, date of discovery, and the specific coverage deficiency.
- Report repeated violators to FMCSA. Carriers operating without proper insurance can be fined and shut down. If a carrier is consistently underinsured, file a report at safetydata.fmcsa.dot.gov.
- Consider buying your own coverage. For high-value shipments, inland marine or freight insurance can protect you against carrier negligence or insolvency.