What Insurance Do You Need to Start a Trucking Company in Texas?

Starting a trucking company in Texas can be a great business move — especially around Dallas, with its booming logistics industry and central location. But before you can hit the road, there is one major box to check: insurance.

Texas law and federal regulations require specific coverage before your trucks can move freight. Below is a breakdown of the coverage a new trucking business typically needs — and how Danaco Group can help you get set up quickly and affordably through our New Venture Trucking program.

1. Primary Liability Insurance (Required)

Primary liability is the bare minimum required to operate a commercial truck legally. It covers bodily injury and property damage to others caused by your truck.

For interstate authority, FMCSA’s current minimums for property carriers include:

• $750,000 for general (non-hazardous) freight in vehicles rated 10,001 pounds or more
• $1,000,000 for oil and certain hazardous materials
• $5,000,000 for the highest-risk hazardous materials

If you operate only within Texas, TxDMV’s state minimums apply instead — for example, $500,000 for most carriers running vehicles over 26,000 pounds. Without the required liability coverage on file, your MC number will not be activated. Separately from the legal minimums, many brokers and shippers set their own expectations — a $1,000,000 liability limit is a common broker and shipper requirement, though not a universal legal one. Ask your agent what the customers you want to work with typically require.

2. Motor Truck Cargo Insurance

Cargo insurance covers the freight you haul against theft, fire, collision, and load damage. It is not federally required for most freight (household goods are an exception), but most brokers and shippers will not give you loads without it. A $100,000 limit is the amount brokers and shippers most commonly request, but it is not a universal requirement — the right limit depends on the freight you haul and the contracts you work under.

3. Physical Damage Insurance

Physical damage coverage protects your own truck and trailer against accidents, fire, theft, and vandalism. It is not required by law, but it is highly recommended — and if you are financing your truck, your lender will almost certainly require it.

4. Bobtail and Non-Trucking Liability Insurance

If you lease onto a motor carrier, your lease will usually require liability coverage for the times you drive outside the carrier’s dispatch. Two related — but not identical — coverages fill that gap:

• Bobtail insurance generally covers your tractor when it is driven without a trailer — for example, deadheading back after dropping a load.
• Non-trucking liability (NTL) generally covers personal, non-business use of the truck when you are not under dispatch.

The two terms are often used interchangeably, but they are not universally identical — terminology and coverage vary by insurer, lease arrangement, dispatch status, and policy wording. Read the actual policy wording, check what your lease agreement requires, and ask a licensed agent which coverage fits how you use your truck.

5. General Liability Insurance

Commercial general liability protects your business as a whole — lawsuits, property damage at customer sites, and personal injury claims. It is often required by freight warehouses, ports, and larger contracts.

6. Workers’ Compensation or Occupational Accident Insurance

Texas does not require most private employers to carry workers’ compensation, but some clients and contracts still demand it. Occupational accident insurance is a flexible alternative many owner-operators and small fleets choose.

Texas-Specific Tips

• Registration: You will need proof of insurance to register your truck for commercial use in Texas.
• Intrastate vs. interstate: Texas-only carriers register with the Texas Department of Motor Vehicles (TxDMV), and your insurer files a Form E as proof of liability coverage.
• MC Number vs. TxDMV Number: If you operate only within Texas, you may need a TxDMV Number rather than an MC number — but insurance is required either way.

How Danaco Group Can Help You Get Covered

We specialize in helping new trucking companies in Dallas get insured fast — and at the best possible rate. We work with multiple insurance carriers, help with DOT and FMCSA filings, know what new authorities need to stay compliant, and can bundle policies to save you money.

Whether you are buying your first truck or getting your authority active, we are here to help. Request a free quote or call us at (214) 624-9770.

Insurance requirements depend on your cargo, vehicle type, operating authority, and routes, and they can change over time. This article is general information, not legal advice — confirm the requirements for your specific operation with a licensed agent or directly with TxDMV and FMCSA.