• Financial responsibility consists of insurance coverage that must be supplied by for-hire property carriers, including PLPD and BIPD coverage.
• Form MCS-90 offers proof that property carriers have complied with the FMCSA-required minimum levels of financial responsibility.

For-hire property carriers are required to maintain financial responsibility ranging from $750,000 to $5,000,000 depending on the cargo carried.

The federal government has mandated that certain carriers must have insurance in place to protect the public before being granted the authority to operate. This coverage, commonly known as “public liability and property damage” (PL PD) insurance or “bodily injury and property damage”(BIPD) insurance, must be active, or the carrier risks suspension or revocation of operating authority as well as fines or other enforcement action.

All for-hire and private carriers required to have and maintain PLPD insurance under Part 387 must retain proof of public liability and property damage at their principal place of business.

The Form MCS-90 is an endorsement issued to a motor carrier of property by an insurance company to show proof that the carrier has in effect the minimum levels of financial responsibility required by the Federal Motor Carrier Safety Administration (FMCSA). The MCS-90 is not an actual insurance policy, serving only as proof the carrier is in compliance with the FMCSA’s requirements that carriers maintain coverage for protection of the public for injury or property damage resulting from operation of the vehicle.

The FMCSA determines the form and content of the MCS-90 endorsement and provides a sample in 387.15. However, the insurance company issues the MCS-90 directly to the carrier. This carrier must keep it at its principal place of business as required by 387.7(d).

In addition, the insurance provider must provide separate documentation to the FMCSA that coverages are in place and notify the agency if coverage lapses or is expected to lapse.