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Federal and state laws mandate that a minimum amount of general limited liability insurance be carried by all commercial motor carriers and/or private motor carriers for hire. The amount of minimum general liability insurance is determined by several factors. Those factors include: interstate vs. intrastate hauling; the gross weight of the equipment or vehicle; and the type of cargo or number of passengers being carried. Although states do have the right to regulate intrastate hauling, almost all have adopted the minimum federal regulations, if not exceeded them.
The federal standards were enacted into law by Congress as the Federal Motor Carrier Act of 1980. The purpose of this act was several fold. Congress wanted to deregulate much of the red tape associated with motor carriers and allow more competition in regards to commercial truck shipping. The government also wanted to “limit confusion as to liability arising from accidents.” As such, much of the legislation was dedicated to limited liability insurance and what exactly that insurance covers.
The law states that “all authorized carriers must maintain insurance or other form of surety conditioned to pay any final judgment recovered against such motor carrier for bodily injuries to or the death of a person resulting from the negligent operation, maintenance or use of motor vehicles under the carriers license.” 49 U.S.C. 13906; 49 C.F.R. 387.7.
Motor carriers traveling on U.S. highways are required by federal and state laws to maintain a certain level of limited liability insurance. The amount of insurance a motor carrier must have is dependent on the weight of the vehicle and the type of cargo hauled. So let’s take a moment to look at the different requirements, and discuss whether or not those requirements fully protect the motor carriers and/or owner operators.
The MCS-90 is an important endorsement that must be filed in many instances, but due to the nature of the endorsement, it’s highly understandable for owner operators in the trucking industry—as well as their motor carriers— to harbor some questions and points of confusion regarding this filing. Let’s take a look together in an attempt to “unmask” the MCS-90.
The MCS-90 is an important endorsement that must be filed in many instances, but due to the nature of the endorsement, it’s highly understandable for owner operators in the trucking industry—as well as their motor carriers— to harbor some questions and points of confusion regarding this filing. Let’s take a look together in an attempt to “unmask” the MCS-90.