Tom's Blog
What is the MCS-90 Form for Trucking Businesses?
If you run a trucking business, you may have heard of “MCS-90” in insurance discussions. But what is the MCS-90 form, and why does it matter? At Paramount Insurance Agency in High Point, NC, we help trucking companies navigate insurance complexities, including federal requirements that affect operations.
Understanding the MCS-90 Form
The MCS-90 form is an endorsement attached to a motor carrier’s liability insurance policy to meet federal regulations. It is required for trucking businesses transporting goods across state lines under Federal Motor Carrier Safety Administration (FMCSA) rules.
This form proves a motor carrier has financial responsibility for public liability. It covers bodily injury, property damage, and environmental restoration costs after an accident. Essentially, it ensures a trucking company can compensate third parties, even if the insurance policy does not typically cover the loss.
Why is the MCS-90 Required?
The MCS-90 endorsement is required under the Motor Carrier Act of 1980. This law mandates that trucking businesses prove financial responsibility to operate legally. Its main goal is to protect the public from financial losses due to trucking accidents.
If a trucking company lacks proper insurance or a claim falls outside the policy’s coverage, the MCS-90 ensures the insurer still compensates affected parties. However, the insurance company may later seek reimbursement from the trucking company if the claim was not covered.
Who Needs an MCS-90 Endorsement?
Trucking businesses that operate across state lines and must file a federal Motor Carrier (MC) number need an MCS-90 endorsement. This applies to carriers transporting:
- Non-hazardous freight in vehicles over 10,000 lbs (minimum coverage: $750,000)
- Oil and hazardous materials (minimum coverage: $1,000,000 to $5,000,000, depending on the substance)
If your trucking business operates only within North Carolina and does not cross state lines, you may not need an MCS-90. However, it’s best to check with an experienced insurance provider like Paramount Insurance Agency to ensure compliance.
How Does MCS-90 Affect Your Insurance Policy?
The MCS-90 endorsement adds financial protection for the public but does not expand your policy’s actual coverage. Instead, it guarantees financial obligations are met, even if a claim falls outside standard policy terms.
For trucking companies, having the right liability coverage is crucial. Without enough coverage, a business could face financial risks if the insurer seeks reimbursement under the MCS-90 agreement.
Get the Right Coverage with Paramount Insurance Agency
Staying compliant with federal regulations while protecting your trucking business can be challenging. At Paramount Insurance Agency, we specialize in commercial truck insurance and can help you determine if an MCS-90 endorsement is necessary.
If you have questions about MCS-90 requirements or need help securing the right coverage, contact our team today. We provide expert guidance and customized insurance solutions for trucking businesses across North Carolina.
Get in touch with Paramount Insurance Agency today at 336-869-3335 to protect your trucking operations and ensure compliance with federal regulations!
