The Value of Motor Truck Cargo Insurance
For-hire cargo carriers are legally responsible for the freight and commodities they transport. Carriers assume liability for cargo at the time of possession and sustain this liability until delivery is made. While carrier liability insurance offers broad coverage and protects against property damage and personal injury to others, it does not typically cover cargo that is in transit. Motor Truck Cargo insurance is designed to offer specific coverage to protect cargo in transit against perils related to loss, damage and theft. This coverage can also be extended to instances of storage-in-transit for cargo requiring warehouse storage at the carrier’s facility.
Covered Risks and Custom Policies
Companies can purchase Motor Truck Cargo policies with a variety of covered risks. An all-risk policy offers the most comprehensive coverage and is the most expensive, while named-perils policies limit the covered risks to those specifically identified in the policy. Some common perils include:
- Nature – wind, lightning, other
- Fire and water damage
- Collision damage from other vehicles or aircraft
- Theft and vandalism
- Vehicle equipment and refrigeration malfunction
- Striking/damaging cargo with carrier’s vehicle
Carriers can tailor policies to their changing needs by selecting specific peril coverages and by adding endorsement options for additional coverage.
A Motor Truck Cargo insurance specialist will assess your operations, fleet size, cargo types and risks to help you get the best coverage for your business.