Why Truckers Need Cargo Insurance?
We always need commercial truckers to have general liability insurance before they drive the truck. The law requires that they need insurance to be cared for if an accident happens. This liability insurance provides essential protection to the truck. You must have known that the cargo can be destroyed/ stolen in many ways, which is why you must have cargo insurance in Indiana for your trucks. Per the FMCSA, one must have insurance to help one get their truck running on the roads. There should be minimum insurance so that some losses can be covered if a mishap happens.
What Is Trucking Cargo Insurance In USA?
This insurance is the insurance that is needed for the protection of heavy and expensive cargo which is carried by your trucks. It can be carried by trucks in all weather, especially in cold weather when the roads become very dangerous due to slippery surfaces. We have seen that insurance provides protection during times of fire, wind, hail, and theft, and it may cause the cargo to be destroyed during the time of the collision. As per the federal government, the insurance should be maximum to be around $5000, but it depends upon the cargo you are taking in the truck. It is seen that there are many truckers and companies, and agents who buy insurance of $100000 to secure the cargo of the trucks while they make their way all over the states in the USA.
Types of Cargo Insurance Policies
There are not many types of truck insurance, and we will discuss them in detail to get you an idea about each. There are mainly three kinds of insurance that can be done by an insurance company:
- Open Cover Trucking Cargo Insurance – It will cover all the insurance cases listed in the policy and leave behind the ones that come in the exceptions. Open insurance is good for large to medium businesses that ship goods and products frequently. If you are shipping multiple shipments to and fro, then it is needed to have open-cover insurance. It is always affordable and cost-effective to cover large volumes as per the load they take every day.
- Contingency Trucking Cargo Insurance – This type of insurance is carried out by the client rather than the seller, and it is done to take place when all other insurances are not working as they intend to. In this case, the insurer tries to give it to the beneficiary in an attempt to get back from the seller. It takes care of the loss, which could happen if things do not go as they should have been. Our agents understand this insurance coverage and are ready to give you the best of that whenever the need arises.
- Specialized Cargo Insurance – It covers a certain batch of cargo with the trucker, which needs special care and insurance. For example, a client is carrying freshly caught fish from one place to another. Then the client gives specific instructions under which, if they are ignored, the insurance company will pay for the loss of the shipment.
Every client has different needs which need to be followed while you transfer the shipment with that trucker or the company.
Why Do You Need Cargo Insurance In Trucking?
This insurance is needed for your business because of the following reasons:
- It is the law that has been created by the Federal government which is needed to be followed
- Accidents can happen anytime, and that is why before they happen, it is good to keep a hand in the insurance such that it can help you take the expenses from your hands
- It protects the property of the client when they are getting transported by the trucks
- It gives protection to the truck from physical damage as, with time, most things get destroyed with time, and thus it is needed to have this insurance
- One should always have bobtail insurance such that when the trucks are not carrying the cargo, they are protected
Now let us discuss what it will exclude when the cargo is being transported, and something like this happens because then the insurance company will not be liable to pay to the beneficiary:
- If the personal items of the drivers are lost/ stolen/ destroyed.
- If there is a loss of the shipping containers like they get destroyed or something happens like regular wear and tear.
- If the cargo is explosive or it is a radioactive material, then the insurance won’t cover the expenses; that is why the government does most of the transportation of these types of cargo.
- If art or jewelry is being transported and they are prone to thefts which makes them very much liable to be stolen on the way, and that is why personal guards are hired to protect the goods while they are being transported.
- Money or money paper is being transported, and that is when you need to take care of the transportation because, like jewelry, they are highly contagious and can be stolen on their way to the banks. It is one of these reasons when they are transported; the information is needed to know only..
- Live animals are getting transported, so it is good that they should be transported in the best conditions because the insurance companies do not give insurance protection to them.
- If the goods getting transported are illegal, like contraband, medicines then it is something that the client needs to take care of and not the insurance company, or the truckers are liable to pay if they are lost or destroyed on the way.
- Imagine some of your cargo is kept for over 3 days waiting to be picked up by you, and in the process, the cargo or the goods are lost to the weather or any other calamity. Then, the insurance company or the trucker will not be liable to pay for any of the damage which has happened to the cargo.
Thus, it only pressurizes that truckers need cargo insurance in Indiana as they can help when you do not have the money or the funds, and they pay for almost most situations. For this insurance, you can contact mayflower Insurance Services by filling out this form.
Q1. What are the best motor truck cargo insurance companies?
Ans. There are many companies, but if you need the ones which are good for you, you can contact us and get the best insurance solutions.
Q2. What does motor truck cargo insurance cover?
Ans. Motor truck cargo insurance covers everything except the situations which are exceptions.
Q3. How do I get cargo insurance for a short-term box truck rental?
Ans. You can get them directly, but you can contact Mayflower Insurance company to get the most affordable policies.
Q4. Is it possible for U-Haul to rent cargo trucks with no insurance coverage in accidents?
Ans. It depends upon the type of insurance services you have opted for.
Q5. What kind of insurance do I need as an owner-operator trucker?
Ans. You need to have general liability insurance, at least as it is my federal law.