Sometimes a client is hit by a truck with no insurance coverage. While it is often difficult to get paid in this situation, there may be a viable “deep pocket” option through the MCS-90 Endorsement. Have you heard of the MCS-90 Endorsement?
What is the MCS-90 Endorsement?
The MCS-90 is an endorsement on an insurance policy which protects the public from trucks which don’t have the minimum liability coverage. Basically, it is a guarantee that if the truck in question has no liability insurance, the truck’s motor carrier’s insurance company will pay the loss. Once the insurance company pays the claim, they then have the right to subrogate, or get reimbursement from, their own insured.
Make sure there’s insurance coverage.
It is very important for all motor carriers, owners, and drivers to make sure they have insurance on each vehicle for all types of foreseeable losses. Periodically, a complete review of policies should be done to avoid gaps in coverage. An insurance agent should be able to lay out the limits of each policy, as well as potential exposure.
Some motor carriers are under the misconception that because they have a MCS-90 endorsement, they are off the hook for any uninsured losses. They are not. The purpose of the endorsement is to protect the innocent public, not the motor carrier. Expenses related to the at victim’s property damage, downtime and bodily injuries are not the ultimate responsibility of the insurance provider simply because there is a MCS-90 endorsement. Even if the insurance carrier pays out as required to the adverse party according to the endorsement, the actual at-fault party may be the ultimate bearer of the burden.
The information provided on this site is general in nature and is not legal advice. The hiring of a lawyer is an important decision that should not be based solely on advertisements. One of our goals is to assist you in making that decision by assuring that you know more about the law and the nature of legal issues which are of concern to you. Before you decide, ask us to send you free written information about our qualifications and experience.