MCS-90 refers to an insurance coverage option for the trucking industry, popularly known as an endorsement. An endorsement is a type of coverage that adds to and provides additional costs on top of your standard insurance policy.
Every trucking organization responsible for interstate commerce possesses an MCS-90 endorsement. If you have sustained injuries due to a truck accident, one of the best ways to recover compensation is MCS-90 coverage.
The endorsement for Motor Carrier Policies of Insurance for Public Liability has two sections, namely Sections 29 and 30 of the Motor Carrier Act of 1980. The MCS-90 form creates a public obligation to pay for negligence in the maintenance and use of motor vehicles when the vehicle is not covered under the insurance policy to which the endorsement is attached.
Is MCS-90 Additional Insurance?
The short answer is no. The MCS-90 does not add additional coverage to your existing insurance policy. However, the MCS-90 will act as an amendment to the standard commercial auto insurance policies. Furthermore, it provides a guarantee to the public.
Role of MCS-90 insurance in the trucking industry
MCS-90 is not insurance. However, it provides an extra layer of balances and checks that will have financial coverage for motor carriers, drivers, and vehicles on the road.
In this situation, the MCS-90 can play a great role if there is an involvement of a third-party leased vehicle. It also includes injuries and damages that have been caused by the negligent behavior of truck drivers. The truck drivers can conveniently fill out the MCS-90 form.
What Are the Carriers In the MCS-90 Endorsement Insurance?
Similar to the drivers of passenger vehicles who need to carry liability insurance in Pennsylvania, trucking companies also carry insurance for their vehicles. It is the Federal Motor Carrier Safety Administration (FMCSA) that carries out the regulation of commercial trucks.
Federal regulations may require MCS-90 form 2022 for all commercial motor vehicles. They must be in operation by motor carrier authorities or private carriers who are carrying hazardous materials. If MCS-90 insurance is not correct or expired, there may be a fine imposed on the trucking company by the Department of Transportation (DOT).
The FMCSA regulates compliance along with the requirements of insurance. Truck wrecks can have catastrophic outcomes especially if they are transporting hazardous chemicals. The minimum insurance coverage will help in paying for property damage, and bodily injury, due to the negligence of the trucking organization.
MCS-90 provides compliance to trucking companies. A surety bond will help the trucking organizations to comply with insurance requirements and in other situations, they can be self-insured. Therefore, MCS-90 will help them to bridge the gap and pay for bodily injuries if the trucking company violates the insurance policy.
How does MCS-90 affect my trucking accident case?
With MCS-90 endorsement, the insurance carrier may agree to pay the claim to the injured party. The victim may get hurt by the vehicle of the trucking company and will be receiving the claim whether the policy provides it or not.
It may or may not affect the truck accident claim. It is because; MCS-90 only applies to the trucking vehicles responsible for interstate trucking and not operating within the state.
To receive coverage under MCS-90, you need to meet all of the conditions that will allow the insurer to pay the compensation. MCS-90 will provide minimum coverage that will be present in any case.
How Much Coverage Does MCS-90 Endorsement Require?
According to the federal regulations for MCS-90 filings, the limit for liability will vary based on what the truck is transporting. The minimum coverage requirements are
- $750,000: for trucks that are carrying more than 10,000 pounds of gross vehicle weight rating GVWR and are carrying hazardous material.
- $5 million: for trucks that are carrying hazardous substances in large quantities and cargo tankers
- $1 million: for trucks with more than 10,000 pounds GVWR and transporting oil or other hazardous material.
- $5 million: The limit is for trucks less than 10,000 pounds of GVWR carrying hazardous material.
Motor carriers who fail to possess minimum coverage may be charged with fines, license suspension, or revocation of any operating license.
Who Is Insured Under the MCS-90 Endorsement?
The MCS-90 safeguards the shippers and the members of the public only. It will not protect the interests of the other insurance carriers. MCS-90 auto endorsement must be attached to your auto liability policy that will ensure whether required liability limits and environmental restitution coverage are in place.
Environmental Restitution Coverage
Environmental restoration refers to the restitution for any damage, losses, and in case of destruction of any natural resources. It happens after an accident occurs and affects any body of water, land, atmosphere, or commodity that is being transported by a motor carrier.
For ordinary trucks, the minimum liability limit is lower. It is because MCS-90 serves as a guarantee to not do any environmental damage. Cargo spills may be hazardous and cause damage to the environment. Therefore, some trucking insurance policies are featuring a pollution exclusion that can transform but not be dismissed. It is done to safeguard the environment.
Want to Develop A Better Understanding of MCS-90?
MCS-90 involves more complexities and complications in negotiating with the insurance company. In some cases, trucking companies may get bankrupt or may deny the claim.
Your case will be thoroughly investigated, and evidence will be gathered to help determine liability, and negotiation with the insurance company will be handled conveniently. Consult with a truck accident lawyer to explore all the routes of compensation that may exist in the MCS-90 coverage.