The Commercial Truck Insurance Filing Requirement MC S90 is easy once you know what it is.
You’ll hear both MC S90 and BMC91X mentioned over and over, but what are they?
Here’s a quick summary:
You’re a Trucking Owner Operator looking to become a For Hire Motor Carrier.
FMCSA has some legal requirements you must follow.
The Federal Motor Carrier Safety Administration – FMCSA – oversees transportation in the United States.
FMCSA requires that all vehicles owned and operated under your Motor Carrier number be insured with
PRIMARY Commercial Auto Liability 24/7
Your Motor Carrier number is referred to as your MC number.
Once you have your own MC number it means that you have your own authority to legally operate a trucking company hauling freight for hire.
Commercial Truck Insurance Requirement MC S90 includes BMC-91X
Commercial Truck Insurance Filings Requirement MC S90 is referred to as MCS-90 on the FMCSA website.
Don’t let it confuse you, it is the same – so don’t worry about spaces and hyphens.
Once you have your MC S90 it will automatically include your BMC-91X.
BMC-91X is also referred to as simply 91X.
How do you get your MC S90 and 91X?
First you buy your Commercial Auto Liability. Stick with a professional Truck Insurance Broker.
She will shop to find you the best coverage at the lowest cost. She will be able to find you discounts, apply credits and offer other tips.
Your policy will include Bodily Injury, Property Damage and Environmental Restoration.
She will also advise you on other coverage you will want to add to your trucking insurance and walk you through every step to get your own authority.
You will need to insure all vehicles owned or operated on your behalf with the same liability coverage.
Once you have your commercial truck insurance policy, the coverage listed is what pays your claim just like any other policy 24/7.
So now all of the vehicles listed on your policy have insurance…
…But FMCSA has another requirement, the MC S90.
This is for situations when you may NOT have all vehicles listed on your insurance policy.
MC S90 Endorsement
The MC S90 is an Endorsement that modifies your commercial truck insurance policy.
This Endorsement promises the public that an accident you cause will be paid even if proper coverage was not in place at the time of the loss.
The MCS90 requirement is usually $750,000 for trucks or trucks and trailers weighing over 10,001 GVW.
The MC S90 requirement is usually $300,000 for small commercial vans under 10,001 GVW.
[See related story – What is the Definition of a Commercial Vehicle]
Here is the FMCSA Insurance Filing Requirements website.
The FMCSA website is not exactly user friendly.
If you’re just getting started, do yourself a favor and work with a professional Truck Insurance Broker. She works with the site every day and can quickly get you on track.
MCS 90 Form Example
You can download this MCS 90 form directly from the FMCSA webiste.
The 91X is simply the Certificate of Liability that proves you have the MC S90 Endorsement on your policy. The BMC-91X is what the insurance company sends to FMCSA for you.
Neither you or your Truck Insurance Broker touch the 91X form. It is sent electronically from your insurance company to FMCSA on your behalf.
If you have Cargo Van or Sprinter Insurance, it is the insurance company’s proof to the public that you are insured for at least $300,000.
Commercial Truck Insurance Requirement MC S90 is designed to protect both the Public AND the Insurance Company
The first part of the MC S90 is a promise to protect the public for $750,000 or $300,000.
The second part of the MCS90 agreement is the Motor Carrier promising the Insurance Company that they will have and maintain at least $750,000 in Commercial Auto Liability. ($300,000 for small commercial vans)
As long as you have maintained at least $750,000 in Commercial Auto Liability, the need for the MCS90 never kicks in. The accident happens, the claim is submitted and paid by the insurance company.
The MCS90 only comes into play if you have a problem with a claim.
The MC S90 kicks in after a court judgment favoring a plaintiff injured by a Motor Carrier. The most common reason is for an undisclosed and uninsured vehicle causing damage while operating on behalf of the Motor Carrier.
Here is the policy language you agree to for Commercial Truck Insurance and your MC S90:
“The (Motor Carrier) Insured agrees to reimburse the (Insurance)company for any payment made by the (Insurance)company on account of any accident, claim, or suit involving a breach of the terms of the policy, and for any payment that the (Insurance) company would not have been obligated to make under the provisions of the policy except for the agreement contained in this endorsement.
It is further understood and agreed that, upon failure of the (Insurance)company to pay any final judgment recovered against the (Motor Carrier) Insured as provided herein, the judgment creditor may maintain an action in any court of competent jurisdiction against the (Motor Carrier) company to compel such payment.”
So FMCSA doesn’t care WHO pays as long as someone pays. The insurance company is making the promise to the public, and you are making a promise to the insurance company.
If you should fail in your promise to the insurance company in insuring all vehicles owned and operated under your MC number, then lawsuits and possible insurance fraud charges occur.
Look, it CAN be confusing to set up your own authority.
It doesn’t cost you anything at all for some free advice hand holding.
It will save you money AND processing time.
Give us a call at CIS, we’d love to help you!