The MCS-90 Endorsement: What It Does and Why It Matters for Trucking Insurance

The MCS-90 endorsement is a short piece of printed language added to commercial auto liability policies for motor carriers that operate in interstate commerce. Although compact, it has outsized legal and financial importance for trucking companies, owner-operators, brokers and shippers across the United States. This article explains what the MCS-90 does, what it doesn’t do, the practical implications for underwriting and claims, and how fleets in states such as Texas, California and Illinois can structure coverages to plug gaps without overpaying.

Sources: FMCSA guidance on financial responsibility and the federal regulation establishing minimums and obligations under 49 C.F.R. Part 387, §387.9.

• FMCSA — Financial Responsibility and MCS-90: https://www.fmcsa.dot.gov/regulations/financial-responsibility
• 49 C.F.R. §387.9 (eCFR): https://www.ecfr.gov/current/title-49/subtitle-B/chapter-III/part-387/section-387.9

What the MCS-90 Endorsement Does (Plain English)

• Creates a direct obligation from the insurer to satisfy public liability judgments or settlements arising from accidents involving interstate motor carriers, subject to the limits stated on the endorsement and as required by federal law.
• Ensures claimants have a payor of last resort: If a carrier’s insurer denies coverage under the policy wording but the claim involves public liability tied to interstate operations, the MCS-90 can obligate the insurer to pay up to the endorsement-required minimums.
• Applies to public liability claims — bodily injury, property damage, and environmental cleanup directly resulting from an accident involving a covered vehicle engaged in interstate commerce.
• Is required for interstate motor carriers who must demonstrate financial responsibility under federal rules (49 C.F.R. Part 387).

What the MCS-90 Does NOT Do

• It does not broaden policy coverage. MCS-90 is not an umbrella that creates coverage where none exists by the underlying policy wording. The endorsement is an assurance of payment obligations for qualifying public liabilities even when the insurer might otherwise dispute coverage — but defenses and exclusions can still be used and insurers can seek reimbursement from the insured in certain circumstances.
• Does not cover worker injuries or employer liability (WC), cargo loss, or every third-party contractual liability.
• Does not replace primary policy limits; it enforces required minimums and obligates an insurer to pay up to those amounts in appropriate situations.
• Does not exempt carriers from state-specific filings or additional insurance required by shippers or brokers.

Minimum Financial Responsibility — Federal Thresholds (What Carriers Should Expect)

Federal rules (49 C.F.R. §387.9) establish minimum amounts of insurance for motor carriers. Typical federal minimums used in the market are:

Note: These are federal baseline minimums — many shippers, brokers and states may demand higher limits. Verify specific requirements for your commodity and route. See 49 C.F.R. §387.9 for full regulatory detail: https://www.ecfr.gov/current/title-49/subtitle-B/chapter-III/part-387/section-387.9

Why MCS-90 Matters to Trucking Companies (Practical Impacts)

• Claims exposure and reputation: If your insurer is required to pay under an MCS-90 obligation, it may settle or defend claims that otherwise might have been excluded — this protects claimants and preserves a carrier’s ability to continue operating, but can affect loss history and premiums.
• Underwriting scrutiny: Carriers whose insurers have paid under MCS-90 obligations often face higher renewal scrutiny and premium increases. Insurers track MCS-90 payouts as significant adverse events.
• Contractual leverage: Brokers and shippers often require proof of federal limits and evidence of MCS-90 filing. Failure to produce proper documentation can cost a contract or result in a denial of payment after a loss.
• Regulatory compliance: Operating without the correct MCS-90-backed proof of financial responsibility can result in registration suspension and fines for interstate operations.

Real-world market context: premiums and carriers

Insurance costs vary widely by state, driving record, cargo, truck age and limits. Example market ranges (representative estimates for the U.S. market as of 2025):

• Owner-operator (one truck) seeking $1,000,000 liability:

  • Dallas / Fort Worth, TX: $6,000–$15,000 per year (typical range depending on mileage and cargo)
  • Los Angeles, CA: $9,000–$25,000 per year (higher tort and claims frequency environment)
  • Chicago, IL: $7,500–$18,000 per year

• Larger small fleets (3–10 trucks) typically see per-truck premiums decline modestly but total spend increases: aggregate policies often run $90,000–$300,000+ annually for small regional fleets.

Major commercial insurers writing trucking business include Progressive Commercial, Great West Casualty, The Hartford and Berkshire Hathaway-affiliated carriers. Each underwrites differently: Progressive and Great West are known for competitive pricing for owner-operators and small fleets, while carriers like Great West often specialize in higher-risk fleets and long-haul operations. Always request multiple quotes — small differences in loss history or route mix can produce material premium variance.

How to Structure Coverage to Plug Gaps Without Overpaying

Balancing compliance, claims protection and cost control requires a deliberate program design:

• Increase primary limits only where exposure demands it; many carriers find $1M is a minimum but $2M–$5M reduces reliance on MCS-90 settlements and umbrella use.
• Add an umbrella or excess liability policy to provide higher limits above the primary. Compare umbrella vs excess choices carefully: Umbrella vs Excess Liability: Which Option Best Supplements Your Trucking Insurance Limits?
• Use endorsements strategically: named insured, additional insured, waiver of subrogation to meet contract requirements without changing core liability wording. See: Common Endorsements in Trucking and Logistics Insurance and When to Add Them.
• Negotiate exclusion carve-outs where carriers or brokers demand broad exclusions that would expose you — see: Exclusion Carve-Outs: Negotiating Wording That Protects Your Trucking Business for drafting tips.
• Match cargo insurance to the commodity: MCS-90 protects public liability but not cargo loss — rely on cargo policies for theft, shortage or damage in transit.
• Regularly review aggregate limits and auditing clauses to prevent surprise shortfalls: How Aggregate Limits Work in Trucking Policies and When They Can Create Coverage Issues.

Practical checklist:

• Confirm MCS-90 endorsement language appears on your policy and ask your broker to file any required certification with the FMCSA as proof of financial responsibility.
• Verify your federal minimums align with the types of loads you haul (hazmat, oil, passengers).
• Shop for quotes from 3–5 carriers and request breakouts (primary liability, cargo, physical damage, uninsured motorist).
• Consider a higher primary and a competitively priced umbrella policy rather than relying on the MCS-90 as your “safety net.”
• Keep detailed logs, preventive maintenance records and hiring standards — underwriting discounts and better terms flow from strong risk management.

Quick comparison: MCS-90 vs Primary Liability vs Umbrella

Final recommendations (U.S. carriers, with focus on TX, CA, IL)

• Treat the MCS-90 as a regulatory and contractual necessity — not as a substitute for adequate underlying coverage.
• For interstate carriers operating in high-liability states (California, Illinois), consider bumping primary limits to reduce reliance on MCS-90 outcomes and secure an umbrella.
• Small fleets and owner-operators should obtain quotes from market leaders (e.g., Progressive Commercial, Great West Casualty, The Hartford) and compare both price and claims handling reputation. Expect typical $1M liability premiums in the ranges noted earlier, but obtain firm quotes — underwriting specifics materially change pricing.

For additional guidance on limit selection and endorsement drafting to avoid coverage gaps, see:

• How to Choose Policy Limits That Balance Protection and Premiums for Trucking Fleets
• Drafting Endorsements for Contingent Cargo and Broker Liability in Logistics Contracts

If you operate interstate, make the MCS-90 part of your compliance and risk-management checklist — confirm filings, choose limits that reflect your cargo and routes, and use umbrella/excess options to control premium spend while protecting your business.