A

ACH (Automated Clearing House)

Electronic bank-to-bank transfer network used for direct deposits and payments.

Additional Insured (AI)

A third party added to your policy to share certain coverage and defense benefits. Often requested by brokers/shippers on Auto Liability or GL via endorsement.

Auto Liability (AL)

Covers third-party bodily injury and property damage caused by your trucks. Core parts: Bodily Injury (BI) and Property Damage (PD).

B

Bill of Lading (BOL)

The shipping contract/receipt outlining terms between the shipper and carrier.

BMC-91/91X Filing

Proof of financial responsibility filed with FMCSA showing you meet federal liability minimums for interstate operations.

Bobtail Insurance

Liability coverage for a tractor operating without a trailer, regardless of dispatch (differs from NTL).

Bobtailing

Operating a tractor without a trailer attached.

BOC-3 Filing

Designation of process agents in each state to accept legal papers on your behalf; required for interstate carriers.

Bodily Injury (BI)

Harm to a third party—medical costs, lost wages, etc.—that you’re legally liable for after an at-fault accident.

Splitting a consolidated load into multiple smaller shipments.

Broker (Freight Broker)

Licensed intermediary arranging transportation between shippers and authorized motor carriers.

C

Carrier (Motor Carrier)

Business transporting freight by road (also used broadly across modes).

CDL (Commercial Driver’s License)

License to operate qualifying CMVs (generally 26,001+ lbs GVWR or hazmat/passenger categories).

Chassis

Trailer frame designed to carry intermodal containers.

Cleanup / Debris Removal

Covers cleanup costs when cargo spills after a covered loss (often under Cargo).

Collision Insurance

Physical Damage coverage for repairs/replacement after a collision or overturn.

Commodities

The goods inside the trailer or container.

Comprehensive Insurance

Physical Damage coverage for non-collision causes (theft, fire, vandalism, weather, falling objects), per policy terms.

Consolidation

Combining multiple shipments to reduce transportation cost.

Contingent Cargo Insurance

Broker-held policy that may respond if the motor carrier’s cargo policy fails to pay a covered claim (subject to terms).

Contract Rates

Pre-negotiated freight rates with a shipper over a set period (vs. spot rates).

Controlled Substances/Alcohol BASIC

CSA category tracking impaired driving and related violations.

Courier

Carrier specializing in expedited/high-value shipments; may include FTL when urgent.

Crash Rate BASIC

CSA category reflecting crash frequency and severity.

CSA BASICs

Seven safety categories used by FMCSA to assess carrier performance.

CSA Scores

Safety Measurement System (SMS) results that guide FMCSA interventions.

D

Deductible

Amount you pay out-of-pocket on a covered claim before insurance responds.

Door-to-Door

Pickup at origin and delivery to final destination.

Door-to-Port

Pickup at origin with delivery to a port/facility for export or onward movement.

DOT Number (USDOT)

Identifier used by the U.S. DOT to track safety, inspections, and crashes.

Drayage Carrier

Short-haul container movement to/from ports, rails, or nearby facilities.

Driver Fitness BASIC

CSA category tracking licensing and medical qualification compliance.

Driver Qualification (DQ) Files

FMCSA-required records for each driver operating a CMV >10,001 lbs GVW.

Drug Testing & FMCSA Clearinghouse

DOT testing compliance and centralized reporting of drug/alcohol violations.

Dry Van

Enclosed 48′/53′ trailer for general freight.

E

Electronic Logging Devices (ELDs)

Devices recording Hours-of-Service and certain vehicle/driver data via the diagnostic port.

Employer’s Liability Coverage

Helps defend employers from certain injury lawsuits outside statutory workers’ comp benefits.

F

Flatbed

Open-deck trailer without sides/roof for machinery, building materials, and oversized freight.

FMCSA (Federal Motor Carrier Safety Administration)

DOT agency regulating interstate trucking safety and compliance.

Freight Brokerage

3PL model arranging transportation between shippers and carriers.

Full Truckload (FTL)

Shipment that fills an entire trailer or moves as a dedicated load.

G

General Liability (GL)

Covers certain non-auto business exposures (premises/operations, some loading/unloading). Often required by contracts.

Gross Vehicle Weight (GVW)

Total vehicle weight including cargo and equipment.

H

Hazardous Materials (Hazmat)

Substances posing risk to health/safety/property; require special handling, training, and compliance.

Hazardous Materials Compliance BASIC

CSA category tracking HM violations (papers, placarding, securement, releases).

Heavy Vehicle Use Tax (HVUT)

Annual federal tax on highway vehicles >55,000 lbs GVW.

Hired Auto Liability

Liability for vehicles you rent, lease, or borrow for business use.

Hours-of-Service (HOS) BASIC

CSA category tracking fatigue and HOS violations.

I

Insurance Quote

Estimated premium and terms from a licensed agent or carrier.

Insured

Person or organization protected by an insurance policy.

Intermodal

Freight moved by multiple modes (truck/rail/ocean) in one journey.

IFTA (International Fuel Tax Agreement)

Simplifies fuel tax reporting for multi-jurisdiction carriers.

IRP (International Registration Plan)

Apportions registration fees based on miles in each state/province.

Interstate

Operations crossing state lines.

Intrastate

Operations within a single state (state filings may apply).

L

Lease Agreement

Contract under which an owner-operator runs under a motor carrier’s authority.

Lease-Purchase Plans

Equipment acquisition over time; typically higher overall cost than traditional financing.

Less-Than-Truckload (LTL)

Consolidated freight that shares trailer space with other shipments.

Logistics

Planning and execution of transportation, warehousing, and related services.

Loss Runs

Claims history reports issued by your insurer (including zero-loss declarations).

M

Managing General Agent (MGA)

Intermediary with underwriting authority from an insurer to appoint agents and bind business.

MCS-150

Biennial update carriers file to keep USDOT information current (every 24 months or upon changes).

MCS-90 Endorsement

Auto Liability endorsement evidencing federal financial responsibility for certain interstate carriers.

Med Pay (Medical Payments)

Optional first-party benefits paying limited medical expenses regardless of fault (varies by state).

Motor Carrier

Business transporting freight by road.

Motor Carrier Authority

FMCSA authorization required for for-hire carriers transporting regulated commodities/passengers interstate.

MC Number (MC#)

Identifier issued by FMCSA for operating authority.

Motor Truck Cargo (MTC)

Insurance covering freight in your care, custody, or control for specified causes of loss.

Motor Vehicle Record (MVR)

Driver’s state record of violations, suspensions, and crashes.

N

Non-Owned Trailer Coverage (NOTC)

Physical Damage coverage for a non-owned trailer while attached to your covered power unit (outside a formal interchange agreement).

Non-Trucking Liability (NTL)

Liability protection when a tractor is driven for non-business, non-dispatch purposes.

O

Occupational Accident (Occ/Acc)

Coverage for qualifying independent contractors for accidental injury during dispatch (not a substitute for WC where required).

Operating (Full-Service) Lease

Lease structure; often includes maintenance/taxes/permits with walk-away at term end.

Operating Authority

DOT/FMCSA approval defining what freight you can legally transport and under what conditions.

Operational Radius

Distance operated from garaging location; impacts underwriting and price.

Out-of-Service (OOS) Order

Enforcement action removing a driver/vehicle/carrier from service until issues are corrected.

Owner-Operator

Driver who owns the truck; may lease on to a carrier or run under own authority.

P

Partial Shipment

Freight using only a portion of trailer space.

PIP (Personal Injury Protection)

No-fault benefits for medical/related costs after an auto accident (state-specific).

Physical Damage (PD)

Covers your truck/trailer for Comprehensive & Collision losses, per policy terms.

Port-to-Door

Delivery from port of entry to final destination.

Power Unit

The tractor (truck) portion of a combination vehicle, excluding the trailer.

Premium

The price you pay for an insurance policy; taxes/fees may apply.

Premium Finance Agreement (PFA)

Third party funds annual premium; you repay over time with finance charges.

Property Damage

Damage to someone else’s property caused by your operations or vehicles.

PSP Report

FMCSA report showing a driver’s 5-year crash and 3-year roadside inspection history.

R

Reefer Breakdown (Temperature Deviation)

Cargo endorsement covering spoilage from covered refrigeration failure or temperature change (maintenance/exclusions apply).

Refrigerated Trailer (Reefer)

Enclosed, temperature-controlled trailer for perishable goods.

S

Safety Measurement System (SMS)

FMCSA system compiling inspection/crash data to generate CSA scores.

Shipper

Party that prepares and tenders freight for transport.

Small Parcel

Package delivery services for individual parcels.

Spot Rates

One-off, real-time market prices to move freight (vs. contract rates).

Straight Truck

Single-unit vehicle with cab and cargo box on the same frame.

Supply Chain

End-to-end network of activities moving products from origin to consumer.

T

TRAC Lease (Terminal Rental Adjustment Clause)

Lease with residual purchase option at term end, or the lessor sells and adjusts based on residual value.

Towing & Storage

Pays towing and storage charges after a covered Physical Damage loss (not roadside assistance).

Trailer Interchange Agreement

Contract transferring a trailer between carriers for continued movement; often requires Trailer Interchange coverage.

Trailer Interchange (TI)

Physical Damage coverage for a non-owned trailer in your possession under a written interchange agreement (even when unattached).

Transportation Risk

Inherent exposure to accidents, cargo loss, or liability while moving freight.

Transportation Risk Specialists

Insurance professionals with trucking/logistics expertise who design coverage and risk-control programs.

U

UIIA (Uniform Intermodal Interchange & Facilities Access)

Standard contract governing equipment interchange between intermodal truckers and equipment providers.

Umbrella (Excess) Liability

Higher limits sitting above Auto Liability/GL (and sometimes Employers Liability) for catastrophic losses or contract needs.

Uninsured / Underinsured Motorist (UM / UIM)

Helps when an at-fault driver has insufficient or no liability insurance.

Unsafe Driving BASIC

CSA category tracking speeding, reckless driving, improper lane changes, distraction, etc.

V

VIN (Vehicle Identification Number)

17-character unique identifier for a vehicle.

Vehicle Maintenance BASIC

CSA category tracking maintenance-related violations and repair issues.

W

Warehouse

Facility used for temporary or long-term storage of goods.

Warehouse Legal Liability

Covers the legal responsibility of a warehouse for customer property in storage.

Wholesalers (Wholesale Brokers)

Intermediary brokers with specialized market access who place business submitted by retail agents.

Workers’ Compensation (WC)

Statutory insurance providing medical, wage, and rehabilitation benefits to employees injured on the job.