The International Risk Management Institute states that:
"The MCS-90 endorsement is a highly misunderstood and increasingly often litigated one-page endorsement required by the Motor Carrier Act of 1980 to be attached to insurance policies covering auto liability exposures of certain types of businesses. Its purpose is to certify that the insured maintains a minimum level of financial responsibility for compensating others involved in truck-related accidents that result in bodily injury, property damage, or environmental damage. The most obvious category of businesses for which this endorsement applies is truckers of all types. Additionally, however, it is often necessary for other types of businesses that transport or deliver their products or services using their own fleets of vehicles (i.e., private carriers)." They put out a very helpful book for anyone trying to understand the area. The book may be found at: www.irmi.com/IrmiCom/Cart/Default.aspx
According to the government, "Financial responsibility means having insurance policies or surety bonds sufficient to satisfy the minimum public liability requirements. Public liability means liability for bodily injury, property damage, and environmental restoration. Environmental restoration means restitution for the loss, damage, or destruction of natural resources arising out of an accidental discharge of toxic or other environmentally harmful materials or liquids.
Requirements for Financial Responsibility
Motor carriers of property operating commercial motor vehicles in interstate, foreign, or intrastate commerce, and for-hire carriers of passengers operating in interstate or foreign commerce must have at least the minimum amount of insurance required by law."
The motor carrier must have proof of the minimum level of insurance at the company’s principal place of business. Proof may be shown by any of the following:
A MCS-90 Form should be carried on board the cabin.
Endorsements for Motor Carriers policies of insurance for public liability under Sections 29 and 30 of the Motor Carrier Act of 1980 (Form MCS-90) issued by an insurer.
Endorsements for Motor Carriers of Passengers policies of insurance for public liability under Section 18 of the Bus Regulatory Reform Act of 1982 (Form MCS-90B*) issued by an insurer.
A Motor Carrier Surety Bond for public liability under Section 30 of the Motor Carrier Act of 1980 (Form MCS-82) issued by a surety.
A Motor Carrier of Passengers Surety Bond for public liability under Section 18 of the Bus Regulatory Reform Act of 1982 (Form MCS-82B*) issued by a surety.
A written decision, order, or authorization of the Interstate Commerce Commission authorizing the motor carrier to self-insure under 49 CFR 1043.5.
Motor Carrier Public Liability Surety Bond Under Section 18 of the Bus Regulatory Reform Act of 1982. www.truckinjurylawyerblog.com/BOND.pdf
Endorsement for Motor Carrier Policies of Insurance for Public Liability Under Section 18 of the Bus Regulatory reform Act of 1982. www.truckinjurylawyerblog.com/Bus.pdf
Endorsement for Motor Carrier Policies of Insurance for Public Liability Under Sections 29 and 30 of the Motor Carrier Act of 1980. www.truckinjurylawyerblog.com/Motor Carrier Act.pdf
Motor Carrier Public Liability Surety Bond Under Sections 29 and 30 of the Motor Carrier Act of 1980. www.truckinjurylawyerblog.com/Section 29 & 30 Bond.pdf