So, who is responsible for insuring all that freight? What if it gets damaged or lost? Does that responsibility fall on the business sending the cargo or on the carrier transporting it?
When it comes to cargo trucking insurance, typically the person or company transporting the cargo is liable for it until it is delivered and signed for. There are a few exceptions such as acts of God (hurricanes and tornadoes), public authority (authorities placing cargo under quarantine), or damage caused by the shipper (loading the truck improperly).
Most companies think about commercial auto insurance to protect against liability, damage, and injuries to their employees. In the transportation industry, protection for your cargo is often equally as important. If you are in the business of transporting the property of others, you need to consider Cargo Trucking Insurance.
Cargo Trucking Insurance covers your liability if the cargo you are transporting is lost or damaged due to fire, collision, or being hit or run over. It covers you while the cargo is under your care, custody, and control until it is delivered and signed for. Some policies even cover the cost of removing debris or pollutants that are accidentally dumped on the road.
Cargo Trucking Insurance isn’t available in all states, and there are some restrictions. On the other hand, some states and most carriers require it for owner operators or companies transporting their goods. And there are federal mandates that require Cargo Truck Insurance in certain circumstances. For example, when you’re carrying household goods across state lines.
Cargo Trucking Insurance is only available for dump trucks, tractors, most trailers, box trucks, cement mixers, cargo vans, dually pick-ups, flatbeds, and car haulers. It is not available for garbage or ice cream trucks or passenger transportation such as limos, buses, and hearses.
The cost of this insurance and the cargo limits can be different depending on the type of cargo being hauled and its origin and destination. To determine the value of the cargo, the owner of the goods should provide a bill of lading, which is required if filing a claim.
As the carrier, you can lower the cost of Cargo Trucking Insurance by increasing your deductible. However, it’s important that make sure you have enough money readily available to cover that deductible in the event of damage or loss.
Cargo Trucking Insurance often includes exclusions for specified types of cargo such as live animals, art, jewelry, money, pharmaceuticals, tobacco, and alcohol. There may also be higher deductibles and sub-limits for certain types of cargo, and theft coverage may be capped at an amount lower than the cargo limit. If your vehicle is left unattended and there is damage or loss to the cargo, certain policies will not cover that loss.
Cargo Trucking Insurance is complicated. There are many exclusions and limitations that insurance agents who do not specialize in trucking insurance may not understand. The independent agents at American Insuring Group are experts in all types of Truck Insurance including Cargo Trucking Insurance.
To learn more about this and other types of commercial insurance, call the friendly agents at American Insuring Group at (800) 947-1270 or (610) 775-3848 or contact us online. You'll save because as independent agents we're free to compare prices and coverage among lots of competing insurance providers.
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