The Federal Motor Carrier Safety Administration (FMCSA) has changed its regulations to allow Canada-domiciled motor carriers and freight forwarders to use insurance policies issued in Canada as acceptable evidence of financial responsibility. The rule change takes effect August 2.
It is estimated that the rule change should save the Canadian trucking and freight forwarder sectors approximately $273 million over the next 10 years, according to FMCSA officials. Until now, these companies were required to cover their US operations with insurance purchased from US providers.
To meet the FMCSA requirements, the insurance must have been sold by Canadian insurance companies legally authorized to issue such policies in the Canadian Province or Territory where the motor carrier or freight forwarder has its principal place of business, according to FMCSA officials. This final rule does not change the required minimum levels of financial liability coverage that all motor carriers and freight forwarders must maintain under the existing regulations.
The rule change was in response to a petition filed by the Government of Canada.