There are many potential risks for transportation companies in today’s trucking climate. In recent years, fatalities between big rig shipping trucks and commuter vehicles have been on the rise, as well as the need for proper insurance coverage for said transportation companies.
Given the rising potential for accidents between trucks on the road and cars, insurers for the trucking industry are more aware of the legally mandated policy endorsements that can boost exposure beyond policy terms.
To make sure your transportation clients know they are protected on the road, it’s important to provide the right information regarding endorsements. Here’s what should be made known:
Since 1980, interstate motor carriers have had to show proof of financial responsibility to maintain their permits for operation. This endorsement, the MCS-90, is now standard as it is designed to protect the general public by guaranteeing a minimum level of payout for claimants who gain injuries on account of an accident at the hand of a trucking client.
Multiple endorsements can be grouped together, mandating that underwriters and claims people work together to limit exposure for an insurer. Under this endorsement, motor carriers that operate on interstate highways are required to pay any final judgement as a result of the negligent operation of a truck.
The MCS-90 really only becomes effective when a number of requirements have been met. The insurance policy (and remember, endorsements are not insurance policies) does not provide coverage for the underlying accident. Also, in order for the endorsement to be accessed, the damaged party in an accident should have no other source for recovery or is a third party who suffers bodily injury or property damage.
Issues for Motor Carriers
While MCS-90 is a great added endorsement to any policy, there are problems that can arise. The most common type of claim made with the endorsement usually involves an insured motor carrier causing an accident with a vehicle not covered by their normal auto insurance policy. The insurance company of a transportation company will have to pay out a claim to satisfy the judgement up to the minimum amount.
Liability insurers for intrastate truckers must also include an endorsement that focuses on the operation of trucking vehicles. The DMV-67 endorsement covers the operation, use and maintenance of motor vehicles up to $750,000. The standard endorsement is usually added to ensure intrastate truckers maintain the base amount of insurance needed to operate.
About Genesee General
At Genesee General, we strive to provide quality insurance solutions for the transportation sector. Our longstanding expertise has allowed us to successfully serve your clients for over three decades. Our specialized package includes Trucker General Liability, Cargo, fleet and non-fleet, physical damage, Bobtail Liability, excess coverage, and many more. For more information about our products, we invite you to contact us today at (800) 282- 8755.