In other word, MCS 90 endorsement is an obligatory proof that motor carrier has already fulfill financial responsibility to the public. Moreover, it is a proof that motor carrier obeying the federal rules so that when something bad happen to public, there is some parties that will responsible for the restoration. If you want to know more about this endorsement, you can read this post to get informed.

Information about MCS 90 Endorsement
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MCS 90 Endorsement: How to Proof the Financial Responsibility

It is very essential to know about MCS 90 endorsement since it will be related with your auto insurance policy especially when you have a business that requires you to ship your goods to another city or country.

The need of the MCS 90 is started by the Federal Motor Carrier Act of 1980. The act stated that every motor carrier that participates in interstate should proof that they have financial responsibility. Actually, the proof can be shown in one of three ways that will be explained below.

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First, each motor carrier can opt to have self-insurance for their company and it can automatically state that the motor carrier has financial responsibility that will be advantageous to cover all claims that may arise from the company’s negligence.

Second, the motor carrier can also provide a proof of financial responsibility by showing a surety bond. The surety bond will contain a promise for one party to pay on behalf of another party when they fail to pay the claims.

Lastly, each motor carrier can proof they have financial responsibility by obtaining insurance trough standard market. By choosing the insurance from standard market, MCS 90 will come into its most beneficial function.

Although the endorsement is quite confusing but it is surely essential to a motor carrier. Moreover, this will help to protect the motor carriers themselves when there is something bad happen on the road.

Minimum Level of Responsibility

Each motor carrier who is involved in trucking activities especially with interstate activities should bring MCS 90. The activities that count in the endorsement can be in the form of transporting passengers or property which passing two states to get to its destination.

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Moreover, if you are carrying hazardous material to the state, you must also require bringing the endorsement.

As already mentioned before, MCS 90 endorsement is not insurance. It is usually attached when you buy a commercial auto liability insurance policy to proof that you have financial responsibility to the public in general.

In other word, MCS 90 is a real form of guarantee that there will be a source of funds to pay for environmental restoration in the event if there is negligence by the insured.  The find is also available for property damage and bodily injury.

You may curious about the minimum levels of responsibility that mandated for the endorsement. For nonhazardous property in foreign or interstate commerce, the minimum responsibility is about $750,000.

This minimum responsibility is for the vehicle with weight rating of 10,000. Meanwhile for the hazardous property, the minimum responsibility is about $5,000,000 and it is specified for intrastate and foreign commerce.

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Those are some information you should know about MCS 90 endorsement that will probably gives more protection to your property. Although somehow people misunderstood about MCS 90, but they mostly know that it is a guarantee to protect the public if only the motor carriers cannot bring the required insurance.

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