Things Must Know about MCS 90 Endorsements to Avoid Mistakes

MCS 90 endorsement – The failure to understand MCS 90 endorsement can be so severe. We may have a great loss upon our uninsured properties especially for-hire carriers. If we have trucks that are used for commercial usage, this will be attached to our trucking liability policy. Not all of us understand this term. So, to make sure there is not significant uninsured loss, let’s try to understand these following things.

Things Must Know about MCS 90 Endorsements to Avoid Mistakes
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MCS 90 is a Financial Responsibility Proof

Formerly, the Motor Carrier Act of 1980 was aimed by the Congress to reduce the countless regulations which worked for commercial motor carriers. Besides, this act is to create the price of insurance among the insurance companies become more competitive.

In short, this act is to make the regulations easy for insurance holders, but frequently, it also becomes additional requirements for motor carriers that are specifically purposed for transporting property or commercial trucks.

Each motor carrier that participates for hire commerce has to show a proof that they do have financial responsibility. Its amount is either equal or greater than the minimum liability required by the state.

MCS 90 endorsement can be shown in three different ways. As we become the motor carrier, we have to self-insure our commercial truck company. Once we have self-insured the commercial trucks, it will be a good start. We now have financial responsibility to cover any claims if any that possibly arise due to our company’s negligence.

However, it has to be noted that endorsement is not a warranty of the insurance company. It becomes our responsibility as the motor carrier. We are required to verify that we do carry the correct limits of insurance as the state requires carrying.

Who MCS 90 Endorsement Applies for ?

A lot of people think that MCS 90 merely applies for motor carriers that are engaged in interstate commerce. However, we have to know that this assumption is completely wrong. MCS 90 has a clear indication saying that this requirement of the federal also prevail to motor vehicles like trucks or vans based on the transported commodity or good like risky materials or substances.

Apparently, it is not only commercial trucks that need MCS 90, but also vehicles that are private-use and that operates in intrastate commerce. The clear difference lies on the transported commodity.

The Insurer’s Obligation

Once the MCS 90 endorsement has been issued, our insurance company from which we have purchased the insurance policy has an obligation to pay the damage and loss based on the terms of the endorsement. Any damage or loss that is caused by negligence in the maintenance, operation or even the use of the vehicles will be covered.

Actually, the obligation of the insurance company is really broad. The term of public liability has broad consequences. These include bodily injury, property damage and also environmental restoration.

The last term is even a lot broader that we think. It includes restitution of loss, destruction or damage that are triggered by natural sources happening accidentally either on land, water or air.

Again, it is underlined that MCS 90 endorsement is merely an obligation of financial responsibility. The insurance does not include in it.

We already know that it has been the obligation of our insurer to pay the loss and damages, but we also need to understand that the terms and conditions including limitations and exclusions contained in the insurance policy still binds between the insurer and insured.

Mistakes possibly happen since MCS 90 endorsement is frequently misunderstood and overlooked. However, the assertion of endorsement is sufficiently straight forward.

Besides, we have to know that each insurance carrier may have different stances on the method of approaching the issuance of this endorsement. It is often that people prefer hiring insurance brokers to help them getting through all of this.