Understanding Cargo Liability Insurance

Motor Truck Cargo

Knowing that anything can happen on the road, staying protected is key to maintaining a reputation and ensuring trucking operations continue. Motor truck cargo liability coverage is designed to protect the insured and the owner of the goods during transportation. Unlike other forms of vehicle insurance, this type of coverage can seem complicated.

What It Is

At a minimum, for-hire trucking requires carrier liability. This limited coverage typically includes injuries or damage to property but not the cargo being transported. Any damage to the precious cargo clients entrust a trucking company with could come with devastating financial results. Cargo liability, which is often required by clients, offers protection for specific or a series of shipments. While every policy is different, it is designed to cover losses such as fire, theft, water damage, collision and equipment failure.

What to Consider

The cargo itself factors into how the policy works. Limits and costs depend on the type of load, where it is being transported from and its destination. In many cases, certain types of cargo are excluded from this coverage. These often include:

  • Art, jewelry, money or paper
  • Alcohol, pharmaceuticals or tobacco
  • Live animals
  • Cargo with another carrier
  • Items owned by the insured
  • Shipping containers

According to www.truckinsure.com, it is also important to factor in theft, which is capped, and unattended vehicle coverage, which typically means zero coverage, when developing transport plans and choosing the right insurance package.