Required Endorsements and Endorsement Wording Every Carrier Must Carry

Keeping insurance endorsements correct and auditable is essential for carriers operating in the USA. This guide explains the endorsements most carriers must carry, sample endorsement wording you can use on policies and certificates of insurance, how endorsements interact with FMCSA financial responsibility rules, and practical pricing context for carriers in major states like Texas, California and New York.

Why endorsements matter (Regulatory + Commercial risk)

• Regulatory compliance: Endorsements (or endorsements-like filings such as MCS-90) ensure an insurer’s policy satisfies FMCSA and state financial responsibility rules. Non-compliant wording can lead to fines, registration suspension, or refusal of claims.
• Contract risk transfer: Shippers, brokers and large customers often require specific additional-insured, primary/non-contributory and waiver-of-subrogation wording to enforce contractual indemnity.
• Audit readiness: Proper, auditable endorsement wording avoids delays in broker audits, state filings, or claims handling.

See FMCSA’s official guidance on insurance and financial responsibility for details: https://www.fmcsa.dot.gov/registration/insurance-requirements and the regulatory text at 49 CFR Part 387: https://www.ecfr.gov/current/title-49/part-387.

Core endorsements every interstate carrier should have

1. MCS‑90 / Motor Carrier Endorsement (or equivalent)

• Purpose: Certifies the insurer’s obligation to pay claims arising from public liability for interstate operations, ensuring FMCSA minimum financial responsibility is met.
• When required: For interstate carriers transporting federally regulated cargo; required on most auto liability policies used for interstate commerce.
• Typical clause (short sample):
  

  “It is understood and agreed that this policy is amended to provide the protection required by the Motor Carrier Act (MCS‑90) for all operations subject to federal financial responsibility requirements.”

Note: The MCS‑90 endorsement does not increase policy limits — it obligates the insurer to pay valid judgments up to policy limits even if the insured’s policy otherwise fails to cover the loss.

2. Additional Insured — Primary & Non‑Contributory Endorsement

• Purpose: Makes a contracting party (broker, shipper, or 3PL) an additional insured, and requires the carrier’s policy to respond before the additional insured’s own insurance.
• Typical wording:
  

  “[Named Additional Insured] is added as an Additional Insured with respect to liability arising out of the named insured’s operations. Coverage afforded to the Additional Insured shall be primary and non‑contributory to any policy maintained by the Additional Insured.”

3. Waiver of Subrogation

• Purpose: Prevents the insurer from recovering claim payments from a contract counterparty after a covered loss (commonly requested by shippers and brokers).
• Typical wording:
  

  “The insurer waives any right of recovery against [Named Entity] by subrogation or otherwise for claims paid under this policy arising from operations for or on behalf of [Named Entity].”

4. 30/60/90 Day Notice of Cancellation (or 10 days for non‑payment)

• Purpose: Ensures certificate holders receive advance notice of policy cancellation so they can take action (e.g., suspend loads).
• Typical wording:
  

  “Should this policy be cancelled, non‑renewed, or materially changed, the insurer will endeavor to provide [30] days’ written notice to the Additional Insured; however, such notice shall be provided as required by law or policy provisions.”

5. Named Insured/Insured Entity Clarification

• Purpose: Clear identification of the legal name and all DBAs of the insured prevents coverage disputes during audits and claims.

Endorsement quick‑reference table

Sample endorsement language (copy‑ready)

• MCS‑90 short form:

  “The insurer agrees that the policy to which this endorsement is attached provides the insurance required by the Federal Motor Carrier Safety Regulations and will be subject to the same liabilities as required by federal law.”

• Additional Insured, Primary & Non‑Contributory:

  “The policy is amended to include as Additional Insureds, as their interests may appear, [NAME]. Coverage provided to Additional Insureds is primary and non‑contributory to any other insurance maintained by the Additional Insured, except to the extent of the Additional Insured’s negligence.”

• 30‑day cancellation notice:

  “The insurer will provide [30] days’ written notice to [NAME] prior to cancellation (10 days for non‑payment) or as otherwise required by law.”

Use exact legal entity names and the certificate holder’s full address on every certificate.

State filings and alternatives: BMC‑91/BMC‑91X, surety bonds, and trust funds

• Brokers and freight forwarders often rely on BMC‑91/BMC‑91X alternatives for proof of financial responsibility under state rules. Carriers should understand differences between policy endorsements (MCS‑90) and alternative financial responsibility mechanisms (surety bonds, trust funds).
• For step‑by‑step guidance on alternatives and state filing nuances, see: State Filings and BMC-91/BMC-91X Alternatives: Proof of Financial Responsibility for Trucking.

Pricing context — what carriers in TX, CA and NY pay for these coverages

Insurance pricing varies by state, cargo, driving history, fleet size and limits. Indicative on‑market annual premiums (typical small, for‑hire, non‑hazardous 2‑axle tractor) as of 2024:

These ranges are indicative; higher limits (e.g., $1M+ primary or MCS‑90 exposures) and hazmat/tank operations can push premiums to $30,000–$75,000+ per unit annually. For commercial pricing details and quotes, see a carrier like Progressive: https://www.progressivecommercial.com/vehicle-insurance/truck-insurance/

Practical checklist: Issue endorsements and certificates the right way

• Confirm legal entity names (including DBAs) and USDOT/MC numbers on the policy.
• Add MCS‑90 (or insurer‑specific endorsement) for interstate operations.
• Attach Additional Insured wording exactly as contract requires (primary/non‑contributory if requested).
• Add Waiver of Subrogation only if indemnity contract requires it and underwriter approves.
• Ensure the certificate shows 30/60/90 day cancellation language and exact policy limits.
• Maintain digital copies and a renewal alert system for every contract counterparty.

For certificate issuance best practices and hold‑harmless handling, read: How to Prepare Certificates of Insurance for Carriers, Brokers and Shippers.

Also review a complete documentation compliance list: Compliance Checklist: Documents, Filings and Coverages for Interstate and Intrastate Carriers.

Final notes

• Always confirm final endorsement language with your insurer and legal counsel before contract acceptance — small wording differences (e.g., “primary” vs. “non‑contributory,” or the presence/absence of “as their interests may appear”) can materially change coverage.
• Use the FMCSA and eCFR links above to verify minimums and legal requirements for your operation: https://www.fmcsa.dot.gov/registration/insurance-requirements and https://www.ecfr.gov/current/title-49/part-387.

If you need copied, audit‑ready endorsement templates tailored to a Texas, California or New York operation (including MCS‑90 language and specific certificate wording), have your insurer or broker draft them and keep signed copies on file.