The MCS 90 and MCS 82 demonstrate the required coverages are in place.
To determine whether or not your company is subject to the FMCSA’s financial responsibility regulations refer to the schedule of public liability limits shown in 387.9, 387.33, and 387.303.
- 49 CFR 387.7 — Financial responsibility required
- 49 CFR 387.9 — Financial responsibility, minimum levels
- 49 CFR 387.15 — Forms
- 49 CFR 387.31 — Financial responsibility required
- 49 CFR 387.33 — Financial responsibility, minimum levels
- 49 CFR 387.39 — Forms
- 49 CFR 387.303 — Security for the protection of the public minimum limits
- 49 CFR 387.309 — Qualifications as a self-insurer and other securities or agreements
- Bodily injury: Injury to the body, sickness, or disease including death resulting from any of these
- BIPD: Bodily injury and property damage
- Endorsement: An amendment to an insurance policy
- Evidence of security: A surety bond or a policy of insurance with the appropriate endorsement attached
- Financial responsibility: The financial reserves (e.g., insurance policies or surety bonds) enough to satisfy liability amounts set forth in this subpart covering public liability
- Insured and principal: The motor carrier named in the policy of insurance, surety bond, endorsement, or notice of cancellation, and also the fiduciary of such motor carrier
- Property damage: Damage to or loss of use of tangible property
- Public liability: Liability for bodily injury or property damage and includes liability for environmental restoration
Summary of requirements
Financial responsibility compliance depends upon several factors:
- Where you operate — interstate or intrastate;
- What kind of carrier you are — private or for-hire;
- The gross weight of the vehicle; and
- The commodity carried — non-hazardous property or hazardous materials, waste, or substances.
If your company falls into any of the following categories, you must have the appropriate level of financial responsibility and proof of insurance:
- Interstate for-hire carriers with vehicles 10,001 pounds or more GVWR transporting non-hazardous property (387.9).
Interstate fleets including only for-hire vehicles under 10,001 pounds GVWR transporting non-hazardous property (387.303).
- Any carrier with vehicles 10,001 pounds or more pounds GVWR transporting hazardous substances in containers with capacities exceeding 3,500 gallons; or highway route controlled quantities of radioactive materials; or bulk shipments of high explosives, poison inhalation materials, or gases.
- Any carrier with interstate vehicles 10,001 pounds or more GVWR transporting oil, hazardous waste, hazardous materials and hazardous substances not mentioned in (2) or (4). For intrastate, only if the products are in bulk.
- Any interstate carrier with vehicles less than 10,001 pounds GVWR transporting high explosives, poison inhalation materials or highway route controlled quantities of radioactive materials.
- For-hire passenger carriers operating in interstate commerce.
To determine whether or not your company is subject to the FMCSA’s financial responsibility regulations refer to the schedule of public liability limits shown in 387.9, 387.33 and 387.303.
MCS-90. 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 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 the 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, who must keep it at their principal place of business as required by 387.7(d).
An MCS-90 must be in your office if you are required to have in effect and maintain financial responsibility in the amounts listed in 387.9, 387.33, or 387.303. If you are not required to have in effect and maintain financial responsibility, you don’t need to maintain an MCS-90 in your office.
MCS-82 motor carrier surety bond endorsement. Carriers meeting the public liability requirements with a surety bond must have an MCS-82 issued by a surety as evidence of compliance. The FMCSA includes a sample Form MCS-82 in 387.15, but the document must be issued directly to the carrier by a surety company. The MCS-82 serves as proof of a surety bond, just as the MCS-90 provides evidence of insurance.
MCS-90B/MCS-82B passenger carrier endorsements. Form MCS-90B is an endorsement issued by an insurance company to a motor passenger carrier as evidence of compliance with the public liability requirements required in 387.33.
Motor passenger carriers meeting the public liability requirements with a surety bond must have an MCS-82B issued by a surety as evidence of compliance.
The FMCSA determines the form and content of the MCS-90B and MCS-82B endorsements and provides samples in 387.39. The insurance company issues the MCS-90B/MCS-82B directly to the carrier, who must keep it at their principal place of business and have it available during a compliance audit.
Renewal. Endorsements remain valid as long as the insurance policy number/surety bond is valid. A new policy number or surety bond requires a new endorsement.
Self-insured carriers. Certain carriers are self insured under 387.309; for these carriers, a written decision, order, or authorization from the Federal Motor Carrier Safety Administration authorizing a motor carrier to self insure will satisfy the proof of financial responsibility requirement.