Home / Insights

Insurance terms in dedicated contract carriage agreements

Helm PartnersUpdated Oct 29, 2026Sources checked Oct 29, 2026

This guide is general information, not advice on any policy.

Short answer

A dedicated contract usually asks for liability above the $750,000 federal floor, plus additional insured status, a waiver of subrogation and primary and noncontributory wording for the shipper. Federal law lets the parties waive some rights in writing, but never the rules on registration, insurance or safety fitness. Whether your policy meets each term depends on its endorsements, so check before you sign.

In this guide
  • What federal law allows
  • Limits
  • Additional insured
  • Waiver of subrogation
  • Primary and noncontributory
  • Certificates and notice
  • A checklist
  • FAQ

Dedicated contract carriage means running trucks and drivers for one shipper under a written agreement. The insurance section of that agreement is often longer than the rate section. Here is what each common term means, in plain words.

What federal law allows

  • A carrier and shipper may contract for specified services under specified rates and conditions, and may waive rights and remedies in writing (49 USC 14101(b)).
  • They may not waive the rules on registration, insurance or safety fitness. Your FMCSA filing stays in place no matter what the contract says.

Limits

  • The federal floor is $750,000 for for-hire freight vehicles rated 10,001 pounds or more (49 CFR 387.303T).
  • Shippers often set a higher limit in the agreement. Excess or umbrella coverage is how carriers usually meet it. See excess vs umbrella.

Additional insured

  • The shipper is added to your liability policy so it can claim under it for losses tied to your work. Policies do this by endorsement, and endorsements differ in how broad they are.

Waiver of subrogation

  • Your insurer gives up the right to recover from the shipper what it paid on a claim. This also takes an endorsement.

Primary and noncontributory

  • Your policy pays first and does not ask the shipper's insurance to share the loss.

Certificates and notice

  • Shippers ask for a certificate of insurance showing each required term, and often for notice before a policy is canceled. A certificate shows coverage. It does not change the policy.
  • See broker insurance requirements for how brokers ask for the same items.

A checklist

  1. Read the insurance section before you sign, line by line.
  2. List each limit and term it asks for.
  3. Compare that list with the endorsements on your policy.
  4. Ask for any wording changes before signing, not after.
  5. Put the renewal date on a calendar and review the terms well before it.

Running general freight for the shipper? See dry van insurance requirements.

For mills and plants: certificates of insurance for mills and plants.

Getting ready for renewal: a dedicated contract renewal checklist.

Michigan, Ohio and Indiana: dedicated contract carriage state notes for Michigan, Ohio and Indiana.

Certificates: a COI request checklist for dedicated accounts.

FAQ

What does additional insured mean in a trucking contract?

The shipper asks to be added to your liability policy so it can make a claim under your policy for losses tied to your work. Whether that is possible, and how broad it is, depends on an endorsement on your policy.

What is a waiver of subrogation?

Your insurer agrees not to try to recover what it paid from the shipper, even if the shipper shared the fault. It usually takes an endorsement on the policy.

What does primary and noncontributory mean?

Your policy pays first for a covered claim, and does not ask the shipper's own insurance to share the loss. It also usually takes policy wording or an endorsement.

Can a contract waive the federal insurance rules?

No. 49 USC 14101(b) lets a carrier and shipper waive rights and remedies in writing, but says the parties may not waive the rules on registration, insurance or safety fitness.

How much liability do dedicated contracts ask for?

It varies by contract. The federal floor is $750,000 for for-hire freight vehicles rated 10,001 pounds or more (49 CFR 387.303T), and many shippers set a higher limit, often met with excess or umbrella coverage.

When should I review the insurance terms of a contract?

Before you sign and well before each renewal. Dedicated agreements renew on set cycles, and changes to limits or wording need time to line up with your policy.

This guide is general information, not advice on any policy.

From the Wire: ATA economist says the rate recovery is driven by fewer trucks, not more freight.

Sources