alert - warning

This page has not been translated into Kirundi. Visit the Kirundi page for resources in that language.

Insurance Requirements for Transportation Service Providers

We recommend all applicants have a complete understanding of FEMA's insurance requirements before joining the FEMA Tender of Service Program (FEMA STOS Program) to make sure working for FEMA is a good fit for their business model.

Arrows icon

We require $300,000 in cargo coverage for all modes of transportation a Transportation Service Provider (TSP) offers FEMA.

This coverage must be valid during the application process and maintained for the entirety of the Program Year for a TSP to be eligible for FEMA loads.

Documenting Your Insurance

FEMA will only accept insurance documentation sent directly by your insurance provider.

  • Any insurance documentation uploaded to Logistic Supply Chain Management System (LSCMS) or sent directly from a Transportation Service Provider will not be accepted.
  • Your insurance documentation MUST specify which modes of transportation your policy covers, and those modes must match your TSP Registration Form.
  • FEMA will accept excess cargo policies provided the covered transportation modes are clearly specified on the ACORD form for both the primary and excess cargo policies.
  • Do not forget to tell your insurance provider your Standard Carrier Alpha Code (SCAC). Insurance documentation must include your registered SCAC.
  • FEMA does not have to be listed as the certificate holder on the ACORD form unless the cargo insurance policy supports FEMA shipments only.
  • See appendix F in the FEMA STOS policy to view examples for how the information must be presented on your ACORD form.

Association for Cooperative Operations Research and Develop Form

We require an Association for Cooperative Operations Research and Development (ACORD) form to verify and validate that any potential Transportation Service Provider (TSP) has at least $300,000 of cargo insurance for all desired modes of transportation.

For example, if you marked that you would like to provide Truckload (TL), Less than Truckload (LTL), and Maritime modes of transportation service for FEMA, then your insurance provider needs to provide a statement similar to the note in the "Description of Operations" section of this sample ACORD form.

Example note says, “Cargo policy AB-12345678901-25 continuously covers the following modes for FEMA per occurrence through the policy expiration date: Maritime: $2,000,000; Deductible: $50,000 TL: $2,000,000; Deductible: $50,000 LTL: $2,000,000; Deductible: $50,000 SCAC: ABCD
Example note says: “Cargo policy number ABCD12345 with $300,000 cargo coverage covers the following modes per occurrence: TL: $300,000, LTL: $300,000, Maritime: $300,000. SCAC: ABCD
alert - info

Still have questions? Check out answers to the most frequently asked questions about insurance requirements.

Return to top