The Motor Carrier Act of 1980 places a number of requirements on interstate trucking companies and carriers, to prove that they are fiscally responsible. The law requires the motor company to pay any damages up to a statutory minimum if they cause any kind of damage to a public property, in case they don’t have the liquidity to pay for any resulting damages. At East Insurance Group, we provide you with all the information you need regarding an MCS-90 endorsement.

Quite a few times, the MCS-90 is mistaken for an insurance policy, when that is not entirely true. What an MCS-90 is, actually is the proof that you have insurance in case you are at fault in case of an accident. We, at East Insurance Group, have agents that will help you find answers to any queries in case you need more clarification.

Do You Need an MCS-90 Endorsement?

If you are someone who has just ventured into the trucking business and also transport hazardous materials, the answer is yes, you do, especially if you are registered as an intrastate or interstate trucking company. But in case you are self-insured, you do not need to complete the form. Though, in case of an accident, you will still need to prove that you can pay the damages — if you are at fault — in an accident and in case you are self-insured.

Once the claims have been paid up by the insurance company, they are then clear to get a reimbursement from the insured. So effectively, what an MCS-90 does is compelling the insurer to pay a premium, because, in case of a lawsuit, the alternative route (such as defending the insured) could be much more costly. While working with East Insurance Group, you can be sure of securing the proper documentation for producing an accurate MCS-90.

What Do You Mean by an Accurate MCS-90?

It is very vital that you have an accurate MCS-90 if you are a trucking company. This information is a way of telling the government that in case your vehicle is in an accident, any damages caused to the public property are paid by your insurer. The East Insurance Group will make sure that all proper documentation is secured for you, and you have all the right forms that are required to produce an accurate MCS-90.

In case your documents are inaccurate or are lacking or if it is expired, you may find yourself facing action or fines from the Department of Transport. You should absolutely avoid this hassle if you want to don’t want to lose a great deal of money and time.

When Does MCS-90 Come into Play?

  • In case of an accident, the injured plaintiff does not have any other source of recovery.
  • In case of an accident, the judgment is against the operator for operating a motor vehicle negligently.
  • The insurance policy has provided no coverage against the accident.
  • The plaintiff is somebody who has suffered any property damage or bodily harm.
  • The plaintiff has a claim for any type of environmental restoration.

Financial responsibilities are imposed on motor carries by the Motor Carrier Act of 1980 who are operating under a federal permit and carriers who are operating under the state authority. The financial responsibility (minimum requirement) is decided, depending upon the type of cargo:

Type of Cargo Responsibility
Hazardous substances that have capacities in excess of 3,5000 gallons (portable tanks) $5,000,000
Non-hazardous property $750,000
Hazardous materials, substances, oil $1,000,000

 

Should I Be Worried about MCS-90?

If you are an insured motor carrier, you will want to familiarize yourself with MCS-90’s unique features. This is because the sole reason for its creation was to fulfill a law with a public policy surety. This is an assurance to the injured plaintiff that regardless of the liquidity of the motor operator, they (the injured plaintiff ) will receive a minimum amount of recovery at least.

Even if a policy excludes coverage for an accident, the company that is issued the MCS-90, will be obligated to pay a claim. This is because instead of a specific vehicle, the MCS-90 attaches to the motor carrier.

Also, the MCS-90 allows the insurer to ask for a refund from the insured for any amount the insurer is required to pay because of the endorsement, which the insurer otherwise would not have to pay under the policy.

As a trucking company, you should always keep your policies and covered vehicles up to date, and this is where the East Insurance Group will be very useful for your business. With our team of dedicated, reliable agents, we strive to keep your business safe and keep your documents updated. We will always go that extra mile for you and ensure that the job is done to your satisfaction and that you always get a better price than everyone else.

Get your business better coverage & rates. Talk to an experienced insurance agent today.