For transportation insurance, an MCS-90 is simply an endorsement that proves a motor carrier has met the financial requirements of the FMCSA regulations and acts as a guarantee to the public. For the trucking industry, it is required to be attached to a motor carrier’s policy when they cross state lines while carrying cargo or passengers.
An MCS-90 would only come into play when an insurance company denies coverage, for which the carrier is liable, due to some exclusion. For example, a motor carrier is traveling across state lines and has an accident wherein the driver loses control and collides with another vehicle.
Subsequently, the other vehicle driver sustains significant injuries and incurs medical bills that total $100,000.00. The other vehicle driver presents their claim to the motor carrier’s insurance company, only to discover that the company has denied coverage due to the motor carrier’s driver being excluded from their policy.
In this scenario, the MCS-90 would guarantee the innocent driver minimum coverage. The insurance company would then have a claim against the motor carrier to recover the amounts paid under the MCS-90 endorsement.
Palomar ensures that you are operating safely and efficiently which helps reduce risk exposure. Call your account manager to discuss your policy if you have any questions at 1-800-489-0105 or email firstname.lastname@example.org.