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Owner-operator insurance with your own authority: an Indiana guide

Helm PartnersUpdated Oct 31, 2026Sources checked Oct 31, 2026

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

Short answer

With your own authority, the liability insurance is yours, not a carrier's. Interstate for-hire freight in a truck of 10,001 pounds or more needs at least $750,000 (49 CFR 387.9), and your insurer files proof with FMCSA. Hauling for hire inside Indiana, your insurer also files a Form E with the Department of Revenue. Workers' comp for yourself is elective.

In this guide
  • Leased on or your own authority
  • What the federal rules require
  • Indiana pieces
  • What contracts and lenders ask for
  • A checklist
  • FAQ

Running under your own authority moves the insurance from the carrier to you. Federal rules set the floor for interstate freight, Indiana sets its own for hauling inside the state, and contracts often ask for more. Here is how it fits together.

Leased on or your own authority

  • Leased on. The carrier's liability insurance protects the public while you haul under its authority, and the lease says who provides other coverage (49 CFR 376.12(j)). See leased-on owner-operator insurance.
  • Your own authority. You hold the USDOT number and MC authority, so the liability insurance and the filing are yours.

What the federal rules require

  • Liability. 49 CFR 387.9 sets $750,000 for for-hire carriers hauling nonhazardous property in interstate commerce in vehicles of 10,001 pounds or more. A carrier whose fleet has only vehicles under 10,001 pounds needs $300,000 (49 CFR 387.303T(b)(1)(i)). Some hazardous materials need $1,000,000 or $5,000,000.
  • The filing. Your insurer files proof with FMCSA on Form BMC-91 or BMC-91X (FMCSA). FMCSA says you must keep it on file to avoid revocation proceedings. See what a BMC-91X filing is.
  • The MCS-90. An endorsement on the liability policy that protects the public. See MCS-90, BMC-91X and Form E.
  • Cargo. Federal rules require cargo coverage only for household goods carriers.

Indiana pieces

Indiana intrastate carrierMinimum
For-hire, nonhazardous, GVWR 10,000 lbs or less$300,000
For-hire, nonhazardous, GVWR 10,001 lbs or more$750,000
Hazardous materials, private or for-hire$1 million to $5 million

What contracts and lenders ask for

A checklist

  1. Confirm the limit your operation needs: $750,000 for most freight, more for some hazardous materials.
  2. Make sure your insurer has filed proof with FMCSA, and check your record after any policy change.
  3. If you haul for hire inside Indiana, file Form IOA-1 and have your insurer file a Form E.
  4. Read each broker and shipper contract for the cargo and liability limits it asks for.
  5. Check what your truck loan or lease says about physical damage.
  6. Decide whether to elect workers' comp for yourself, and send the written notices if you do.

Getting set up: starting a trucking company in Indiana and the cost to start one. Ohio version: Ohio owner-operator insurance with your own authority. Leased on instead? See non-trucking liability vs bobtail.

FAQ

What insurance does an Indiana owner-operator with their own authority need?

By rule, public liability: at least $750,000 for for-hire freight in a truck of 10,001 pounds or more (49 CFR 387.9), or $300,000 if every vehicle you run is under 10,001 pounds (49 CFR 387.303T), with your insurer filing proof with FMCSA. Brokers, shippers and lenders often ask for more in their contracts.

Who files my insurance with FMCSA?

Your insurance company files proof of liability, Form BMC-91 or BMC-91X, with FMCSA. You cannot file it yourself. Household goods carriers also file cargo coverage.

What liability does Indiana require for hauling inside the state?

Indiana DOR's Commercial Motor Vehicle Guide lists $300,000 for for-hire nonhazardous property in a vehicle with a GVWR of 10,000 pounds or less, $750,000 at 10,001 pounds or more, and $1 million to $5 million for hazardous materials. Your insurer files a Form E with Motor Carrier Services.

Do I need workers' comp for myself in Indiana?

Not by default. Indiana law treats a sole proprietor, partner, or LLC member or manager as an employee only if they elect it by written notice to their insurance carrier and the Worker's Compensation Board (IC 22-3-6-1(b)). Once you hire an employee, the employer coverage rules apply.

If I lease onto a carrier, am I its employee for workers' comp?

Indiana law says an owner-operator who provides a truck and driver to a motor carrier under a written contract subject to 49 CFR 376 is not the carrier's employee for workers' comp. You may elect to be covered under the carrier's policy if you pay the premiums it asks (IC 22-3-6-1(b)(8)).

Is cargo insurance required?

Federal rules require cargo coverage only for household goods carriers. Many brokers and shippers ask for cargo coverage in their contracts, so read each one.

This guide is general information, not advice on any policy. For your own situation, check with the agencies linked below.

Sources