There are many inherent risks when transporting goods using the trucking industry. Accidents can happen, and property can become damaged. Carriers are required by law to have a minimum amount of insurance to operate. However, this typically just covers damage to the truck, trailer, other property, and injuries to people. The actual cargo being hauled is excluded in the policies. This is motor truck cargo liability explained.
Why Is It Needed?
Obtaining cargo insurance ensures that you are protected if a load is damaged during transit. It is typically purchased for a single shipment or series of similar shipments. Events that trigger coverage can vary based on the policy but commonly involve losses due to theft, fire, water damage, and equipment failure.
What Else Does It Cover?
Another advantage of cargo insurance is that it can provide reimbursement for other costs that are a result of the lost load. For example, if the shipment is spilled all over the highway it can cover costs related to removing debris and cleanup. There are additional endorsements that may be added specifically to a load or industry.
Cargo insurance provides protection for both the party that is shipping the goods as well as the trucker that hauls it. Understanding the benefits of this coverage is key to a solid risk management strategy.