Trucking companies that operate in interstate or foreign commerce must have an insurance endorsement on their policy known as an MCS-90 endorsement. This endorsement certifies that the trucking company’s insurance provider will provide coverage for the financial responsibility the company must assume under federal trucking laws, including the obligation to pay compensation for injuries, property damage, or environmental contamination caused by the company’s negligence.
Who Needs an MCS-90 Endorsement?
A trucking company that transports goods in interstate commerce must obtain an MCS-90 endorsement if they have not pursued other means of establishing financial responsibility required by federal trucking regulations, such as through a surety bond or self-insurance. Most trucking companies choose to establish their financial responsibility through an MCS-90 endorsement on their insurance policy.
MCS-90 Insurance: What It Covers and What It Doesn’t
Under an MCS-90 endorsement, an insurance company agrees to pay any final judgment recovered against the insured trucking company for public liability resulting from negligence in the operation, maintenance, or use of commercial vehicles subject to the financial responsibility requirements of the Federal Motor Carrier Act of 1980. This coverage applies regardless of whether the policy specifically lists a vehicle operated, maintained, or used by an insured trucking company and irrespective of whether any negligent act occurs on any route or in any territory authorized to be served by the company. “Public liability” refers to liability for bodily injury, property damage, and environmental restoration.
However, an MCS-90 endorsement does not apply to injury or death of the trucking company’s employees while engaged in the course of their employment or to property transported by the trucking company designated as cargo.
MCS-90 insurance only provides coverage in the amounts designated by the endorsement. An insurance company can provide primary or excess insurance. A primary insurance policy pays the first amount of public liability incurred by a trucking company up to the policy limit that the company purchased from the insurer. Excess policies pay for public liability incurred due to an accident that exceeds the coverage limits of primary policies. Once a trucking company exhausts its coverage limit under an MCS-90 endorsement, the insurance company no longer has a responsibility to provide compensation for public liability.
How MCS-90 Works in Real Life: Example Scenarios
Federal law sets the minimum coverage limits that an MCS-90 endorsement must provide, although trucking companies can purchase higher insurance limits. The minimum required coverage depends on the type of carrier and the type(s) of cargo the company transports:
- For-hire trucks in interstate or foreign commerce with a gross vehicle weight rating of 10,001 or more pounds that transport non-hazardous cargo must carry coverage of $750,000 per accident.
- For-hire and private trucks operating in interstate, foreign, or intrastate commerce with a gross vehicle weight rating of 10,001 or more pounds that transport hazardous substances in cargo tanks, portable tanks, or hopper-type vehicles must carry coverage of $5,000,000 per accident.
- For-hire and private trucks operating in interstate or foreign commerce in any quantity, or in intrastate commerce in bulk, with a gross vehicle weight rating of 10,001 pounds or more, transporting oil, hazardous waste, hazardous materials, and certain hazardous substances, must carry coverage of $1,000,000 per accident.
- For-hire and private trucks operating in interstate or foreign commerce with a gross vehicle weight rating of less than 10,001 pounds that transport certain hazardous materials must carry coverage of $5,000,000 per accident.
Suppose a trucking company has a primary MCS-90 endorsement of $5 million and another excess policy of $5 million. The trucking company’s truck driver negligently causes an accident that severely injures the occupants of a car it collides with, causing them to sustain a total of $7 million in losses. In that case, the primary MCS-90 policy may pay out the full $5 million coverage limit while the excess policy pays the remaining $2 million in losses.
Why MCS-90 Is Important for Trucking Companies in Florida
MCS-90 insurance provides financial protection for trucking companies whose operations may cause truck accidents that result in injuries, property damage, or environmental contamination. An MCS-90 endorsement ensures that the trucking company’s insurer will pay for any judgments or financial liability arising from such injuries, property damage, or environmental contamination caused by accidents involving commercial trucks. Having an MCS-90 endorsement also enables the trucking company to comply with its financial responsibility requirements under federal regulations, thereby avoiding financial and operational penalties.
Penalties for Non-Compliance with MCS-90 Regulations
Trucking companies that do not obtain an MCS-90 endorsement if they do not have other proof of financial responsibility or who allow their MCS-90 endorsement to lapse can face various penalties. These penalties include fines imposed by the U.S. Department of Transportation or the suspension of the company’s operating certificate until it can provide proof of a valid MCS-90 endorsement.
How to Get MCS-90 Insurance in Pensacola, FL
A trucking company can obtain MCS-90 insurance by contacting its insurance provider to purchase an endorsement on the company’s insurance policy.
When a truck accident victim files an injury or property damage claim against the trucking company, the company’s MCS-90 insurance may pay the settlement or court judgment obtained in the accident victim’s claim.
FAQ: MCS-90 for Trucking Companies
Common questions that truckers and trucking companies have about MCS-90 include:
What is MCS-90 insurance?
MCS-90 insurance refers to a policy endorsement on a trucking company’s insurance contract that indicates that the company’s insurer will provide the insurance coverage necessary for the company to meet its financial responsibility requirements under the Federal Motor Carrier Act.
Is MCS-90 required for all trucking companies?
A trucking company does not need an MCS-90 endorsement if it establishes its required financial responsibility through other means, such as a surety bond or self-insurance authorized by the U.S. Department of Transportation.
Does MCS-90 protect the truck owner?
An MCS-90 endorsement protects the motor carrier that holds the insurance policy. The insured motor carrier may or may not own the commercial truck involved in an accident that constitutes a loss under the MCS-90 endorsement.
Contact a Pensacola Trucking Attorney To Learn More
When you’ve gotten hurt in a trucking accident, your subsequent injury claim may involve MCS-90 insurance. Contact Cardoso Law, PLLC, today for a free, no-obligation consultation with a Pensacola trucking accident lawyer to learn more about MCS-90 endorsements, motor carrier policies, and how they may affect your truck accident claim.
