Understanding Cargo Insurance for Truckers

Cargo Insurance

Freight haulers are open to numerous risks during the course of business. By law, truckers are required to have a certain level of insurance protection. This is typically a liability policy that provides coverage in the event of bodily injury or property damage. A separate type of insurance that also needs to be understood is commercial cargo insurance.

Motor truck carriers hold a responsibility when a shipper’s load is in their possession. In the event of an accident, a trucking company can be held liable for the loss of freight. The amount of this liability can vary greatly depending on the type of cargo and the agreed-upon contract. If a transporter does not carry adequate protection, then the results could be financially damaging.

How Policies Work

Cargo insurance can be written in various ways in order to cover, or exclude, certain scenarios. Typically policies are under an “all-risk” coverage, meaning that a hauler is protected if something happens due to countless external factors. The insurance can also expand to times when the cargo is not on a vehicle, such as on a dock or in a warehouse.

Other factors need to be considered when determining the cost of a policy. The deductible and maximum coverage limits are two of these. Speaking with a professional can help you navigate the challenges of selecting the proper insurance.