MCS-90 Endorsement: What It Is and What It Is Not

If you haul for hire across state lines, your auto liability policy probably has an MCS-90 endorsement attached. The MCS-90 endorsement is a federal form from FMCSA, the Federal Motor Carrier Safety Administration. Many truckers think it is extra coverage for them. It is not. It is a promise to the public. Here is what the form says, in plain words.

What the MCS-90 endorsement is

An endorsement is a page added to an insurance policy that changes or adds to it. The MCS-90 is the endorsement FMCSA requires on auto liability policies for many motor carriers of property. The rule is in 49 CFR 387.15. The form's title says it is an endorsement "for public liability" under the Motor Carrier Act of 1980.

Public liability means your legal responsibility to other people. The form defines it to include bodily injury, property damage and environmental restoration. So it is about harm to others, not harm to you or your truck.

What the MCS-90 says the insurance company will do

Here is what the form says, in simple terms:

• It pays final judgments. The insurance company agrees to pay any final judgment against you for public liability caused by negligence in using your trucks, up to the limits on the form. A judgment is a court's final decision that you owe money.
• It applies even if a truck is not listed. The form says it applies whether or not each vehicle is specifically described in the policy.
• It applies anywhere. It applies whether or not the accident happens on a route or territory you are authorized to serve.
• Policy problems do not stop the payment to the public. The form says no condition or limit in the policy relieves the insurance company from paying a final judgment, within the limits, even if you go broke.
• Each accident stands alone. The limits apply separately to each accident.

What the MCS-90 is not

This is where many truckers get confused:

• It does not cover your own truck. It is about public liability. Damage to your own truck falls under physical damage coverage, if you have it.
• It does not cover your cargo. The form says it does not apply to property you transport, designated as cargo. Cargo needs its own coverage.
• It does not cover your employees. The form says it does not apply to injury or death of your employees while they are working.
• It does not replace your policy. The form says all the terms of your policy still apply between you and the insurance company.

The reimbursement part: why it matters to you

This is the part most owner-operators never read. The form says you agree to pay the insurance company back in two cases:

1. For any payment made because of an accident, claim or suit involving a breach of the policy terms.
2. For any payment the insurance company would not have had to make under the policy, except for the MCS-90 agreement.

In plain words: the MCS-90 protects the injured person. If the insurance company pays someone only because of the MCS-90, and your policy did not really cover that loss, it can ask you to pay that money back.

That is why the MCS-90 is not a safety net for you. Your real protection is having the right policy, with the right trucks, drivers and details on it.

Cancellation notice on the MCS-90

The form also sets notice rules for cancelling it. Either side must give 35 days' written notice to the other. If you are subject to FMCSA registration, 30 days' notice must also go to FMCSA. This is part of why your insurance filings with FMCSA need attention, not just your policy.

How to protect yourself

• Read your policy, not just the MCS-90.
• Make sure every truck and driver is listed.
• Tell your agent about route and freight changes.
• Carry cargo and physical damage coverage if you need them.

Our trucking insurance coverage guide explains the main parts of a truck policy.

When to call us

Want to know what your policy really covers beyond the MCS-90? Call TCZ Insurance Agency at 956-526-6727. We will walk through it with you.

Common questions

Does the MCS-90 mean I am fully covered? No. It protects the public up to the limits on the form. Your own coverage depends on your policy.

Does the MCS-90 cover cargo claims? No. The form says it does not apply to property you transport, designated as cargo.

Can the insurance company make me pay back a claim? The form says you agree to reimburse the insurance company for payments it would not have had to make under the policy except for the endorsement.