What it does
Under 49 CFR 387.7(d), a motor carrier subject to the federal minimum financial responsibility rules must keep proof of that responsibility at its principal place of business. The proof can be an insurer's MCS-90 endorsement, a "Motor Carrier Surety Bond for Public Liability Under Section 30 of the Motor Carrier Act of 1980" (Form MCS-82) issued by a surety, or FMCSA authorization to self-insure. Like the MCS-90, the MCS-82 must be in the form FMCSA prescribes, issued in the exact name of the motor carrier, and remain in effect continuously until terminated (49 CFR 387.15).
Who uses it
Motor carriers of property, including hazardous materials carriers, that satisfy the federal public liability minimums ($750,000 for general freight on vehicles of 10,001 pounds GVWR or more, higher for oil and hazardous materials) with a surety bond rather than insurance. Passenger carriers use the counterpart Form MCS-82B.
Key rules
- Bonds, like policies, may be cancelled by either party with 35 days' written notice under 49 CFR 387.7(b).
- Carriers domiciled in a contiguous foreign country must carry a legible English copy of the MCS-82 or MCS-90 in each vehicle operated in the United States.
- For FMCSA operating-authority filings, a surety files Form BMC-82 or the MCS-82 under 49 CFR 387.313, depending on the limits involved.
Selling notes
A surety bond guarantees the carrier's obligation to the public; it does not insure the carrier's own liability or vehicles. Carriers using an MCS-82 still need auto liability and physical damage insurance for their own protection.
