BIPD

Definition

BIPD - Bodily Injury and Property Damage - is the primary liability insurance every for-hire motor carrier carries to cover third-party injury or property damage from a crash. FMCSA sets minimum BIPD limits under 49 CFR 387.9: $750,000 for general freight; $750,000 for household goods carriers, plus cargo of $5,000 per vehicle and $10,000 per occurrence (BMC-34); $1,000,000 for oil and for hazardous materials, waste, or substances not in the $5,000,000 entries; and $5,000,000 for bulk hazardous substances in cargo tanks, portable tanks, or hopper vehicles, bulk Division 1.1, 1.2, or 1.3 explosives, bulk Division 2.3 or 6.1 PG I Hazard Zone A, and highway-route-controlled quantities of Class 7. Passenger carriers with 16 or more seats need $5,000,000. The insurer files Form BMC-91 (or BMC-91X for hazmat) electronically with FMCSA to satisfy the financial-responsibility requirement. If the insurance filing is cancelled, FMCSA can revoke the operating authority.