MCS-90 Endorsement: Overview & Practical Considerations

1. What is the MCS-90?

The MCS-90 is a federally mandated endorsement attached to certain commercial motor carrier insurance policies. It is required under the Motor Carrier Act of 1980 and federal regulations (49 C.F.R. Part 387). It is not traditional insurance coverage. It operates more like a financial guarantee/surety obligation.

The purpose is: To ensure that innocent members of the public injured by federally regulated motor carriers are compensated, even when the insurance company may have a coverage defense under the policy.

2. Why does the MCS-90 exist? (Public Protection Purpose)

Before these regulations, a trucking company could injure someone and then the insurer could deny coverage based on technical policy defenses, leaving the injured person without recovery.

Congress created the financial responsibility requirements to prevent that.

The public policy: Commercial motor carriers operating on public highways should have financial responsibility available to compensate injured members of the public.

So, the focus shifts from protecting the insured to protecting the public.

3. Who is required to have an MCS-90?

For-hire motor carriers who:

• Transport property;
• Operate commercial motor vehicles;
• Operate in interstate commerce; and
• Are subject to FMCSA financial responsibility requirements.

Key questions:

• Does the company have a USDOT/MC number?
• Does it transport goods for compensation?
• Does it cross state lines or transport goods in interstate commerce?
• Was it operating as a regulated motor carrier?

4. How much financial protection does the MCS-90 provide?

The MCS-90 does not create unlimited coverage. It is tied to the minimum financial responsibility requirements under federal law, which depend on the type of motor carrier and cargo being transported.

• Minimum financial responsibility: $750,000.00

5. Who does the MCS-90 generally apply to?

Assume:

• Trucking company causes crash
• Injured third party obtains judgment

Insurance company says:

• vehicle not scheduled,
• driver excluded,
• policy exclusion applies

The MCS-90 can require the insurer to pay the injured third party anyway. For example, if the policy says: “This truck was not listed, so no coverage.”

MCS-90 may say:

“That may be true between insurer and trucking company, but the injured member of the public still must be protected.”

6. Important limitation: MCS-90 does NOT create normal insurance coverage

This is important because it does not rewrite the policy. Most importantly, it does not mean the truck was “covered.” It simply means that even though there may be no coverage, federal law may require payment to protect the public.

7. Right of reimbursement

If the insurance company pays ONLY because of the MCS-90, the insurer can seek reimbursement from its insured (the trucking company).

8. How to Investigate Whether an MCS-90 Applies

The first step is not to accept the carrier’s denial at face value. Determine whether federal financial responsibility obligations may exist.

A. Public Search / Public database showing the motor carrier’s profile

• FMCSA (Federal Motor Carrier Safety Administration)
• SAFER System (Safety and Fitness Electronic Records System)

Search by:

• Company name;
• USDOT Number (United States Department of Transportation number — identifies the carrier);
• MC Number (Motor Carrier number — identifies federal operating authority).

Look for:

• Active operating authority
• For-hire status
• Interstate operations
• Insurance filings

FMCSA Licensing & Insurance Database — look for:

• BMC-91/BMC-91X filings (proof of financial responsibility filed with FMCSA);
• Insurer listed; and
• Effective dates.

B. Determine What the Truck Was Doing

• Was the driver under dispatch?
• Was there a load assignment?
• Where was the truck coming from/going?
• Was it transporting cargo?
• Was it traveling to pick up or returning from an interstate load?

Documents to request:

• Dispatch records;
• Bills of lading;
• Trip documents;
• Driver logs/ELD data;
• Complete policy and all endorsements, including MCS-90.

This overview is provided for informational purposes only and does not constitute legal advice, nor does it create an attorney-client relationship. Whether an MCS-90 endorsement applies depends on the specific facts of each case. Attorneys at Shiner Law Group are Members of The Florida Bar. This is attorney advertising.