MCS-90 endorsement in Commercial Trucking Insurance

If you operate a commercial trucking business, you’ve likely heard of the MCS-90 endorsement. But what exactly is it, and why is it important?

What is the MCS-90 Endorsement?

The MCS-90 is an endorsement (or add-on) to a commercial auto insurance policy that ensures a motor carrier meets the federal financial responsibility requirements for transporting goods or passengers. It was established under the Motor Carrier Act of 1980 to protect the public by guaranteeing compensation in case of an accident, even if the trucking company’s insurance policy would otherwise deny coverage.

Who Needs an MCS-90?

Motor carriers operating across state lines (interstate commerce) and transporting regulated commodities must have an MCS-90 if they are required to carry public liability insurance.  This applies to:

• For-hire motor carriers transporting goods or passengers
• Private carriers transporting hazardous materials
• Companies operating under a federal motor carrier (MC) number

The endorsement ensures compliance with the Federal Motor Carrier Safety Administration (FMCSA) requirements.

How Does MCS-90 Work?

The MCS-90 endorsement guarantees that the insurance company will cover bodily injury, property damage, and environmental restoration costs resulting from an accident- up to the policy limits-regardless of whether the policy itself excludes the claim.

However, if the insurer pays a claim that the policy wouldn’t normally cover, they can seek reimbursement from the insured trucking company.  This means the motor carrier remains financially responsible for any losses beyond its policy’s actual coverage.

Key Points to Remember

• The MCS-90 is not a standalone insurance policy-it’s an endorsement attached to an existing policy.
• It only applies to claims involving the public (third parties) and does not cover damages to the insured’s own vehicle or cargo.
• If a claim is paid under MCS-90 but wasn’t covered by the policy, the insurance company can recoup the costs from the trucking company
• The endorsement is only required for federally regulated motor carriers-it’s not needed for purely local trucking operations.

For commercial trucking businesses, understanding the MCS-90 endorsement is essential to staying compliant with federal regulations and ensuring protection against major liability claims. While it doesn’t extend coverage, it provides a financial safety net for the public-keeping motor carriers accountable and insured in the eyes of the law.

If you have any questions about MCS-90 or need help with your commercial trucking insurance, AnderGray Insurance is here to assist you! Contact us today to ensure your business is fully protected and compliant.