The insurance is intended for freight and transport companies operating domestic or international road transport by buses, towing vehicles or trucks of a total weight of over 3.5 tons which are legally obliged to prove their financial competence for the proper operation of road transport pursuant to Section 4a of Act 111/​1994 Coll., On Road Transport. Basic public transport service operators are exempt. 

Financial competence is proven using:

• business assets
• volume of available funds and operating capital
• operating reserve of up to EUR 9,000 for a period of 12 months for the first vehicle  and EUR 5,000 for each additional vehicle used 

The basis are the records of vehicles reported to the relevant transport authority.  A less costly alternative is a suretyship agreement concluded with an insurance company.

The insurance covers unpaid liabilities due to the insured's insolvency (the capacity to financially cover the proper commencement or operation of road transport).

The financial competence must be ensured and maintained for the duration of the road transport. The adequacy and duration of the financial capacity must be demonstrated by the transport service operator to the relevant transport authority for each calendar year by 31 July of the following year at the latest. If the carrier fails to prove his financial competence to the local transport authority, his transport service concession be withdrawn in an administrative procedure.