MCS 90 – Is This a Trucking Insurance Requirement for Your Company?

The Motor Carrier Act of 1980 placed several requirements on interstate motor carriers. The Act, signed by Jimmy Carter in 1980, removed government restrictions and reduced the nonessential regulations currently in place in the trucking industry. Some old regulations stayed in place and some new regulations came about. A new trucking insurance requirement is the MCS-90 endorsement. So, what is an MCS-90 endorsement and why is it a trucking insurance requirement? 

What is an MCS-90 endorsement?

First, an important thing to remember is MCS-90 endorsement is not insurance. It is an endorsement or change in an insurance policy that modifies coverage. An MCS-90 endorsement attaches to a trucking company’s auto liability policy issued by their insurance carrier. It can also attach to the company they provide the insurance coverage to the trucker. This endorsement provides the proof that the trucking company has the minimum obligated financial requirements. These requirements are set forth by the federal regulations for motor carriers. The MCS-90 warrants the public that sufficient funds are available for paying out a claim the motor carrier might cause through an accident.

Who needs an MCS-90 endorsement?

Generally, every trucking company needs an MCS-90 endorsement. This means that both interstate and intrastate trucking companies are both required to have this endorsement attached to their auto liability insurance coverage, depending on the goods hauled. However, if a company is self-insured, they don’t need this endorsement. They will still have to prove that they have the financial means to pay damages if they get in an accident where they are at-fault. This is usually done by way of a bond.

Who issues an MCS-90 endorsement?

The insurance carrier for a trucker’s auto liability coverage issues the MCS-90 endorsement. When the insurance carrier issues an MCS-90, they then take on the responsibility for payment on public liability, as written in the endorsement. MCS-90 is not filled with the FMCSA directly. Instead, a BMC 91 or BMC 91X filing is what the insurance carrier sends to the FMCSA to show that the insurance carrier has attached an MCS-90 endorsement to the trucking company’s policy. 

In conclusion, if you still have questions on MCS-90 endorsements or any other trucking insurance requirements, reach out to your current insurance agent. You can also reach out to our partnered Trucking Specialist Insurance agency, Trinity Insurance, they will be able to help assist you. 

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About the Author

Maranda Heaverin

Maranda Heaverin

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