Trucking companies are often required to provide motor truck cargo insurance to their customers. You can be responsible if the property you carry is not in a good condition when you provide cargo transportation services. Vehicle collisions, overturns, fires, and theft are just some of the common risks that can destroy your cargo.
There are a number of ways you can protect yourself against these perils:
Cargo insurance is a type of insurance that protects your business from the financial costs associated with transporting cargo. It covers the loss or damage to your cargo during transit, including theft and accidents. While most cargo insurance policies cover all types of goods — including perishable items — there are also policies available for specific types of cargo, such as heavy equipment or automotive parts.
A motor truck cargo insurance policy protects your goods and property while a motor carrier is transporting them. Freight carriers are responsible for protecting the value of client property. The Federal Motor Carrier Safety Administration (FMCSA) requires Motor Truck Cargo Coverage for vehicles and companies involved in household goods transportation (e.g., moving companies). There is a good chance that your company will require you to have it. Depending on the type, amount, and distance of the cargo which you will transport and how long it takes for the transport to complete, premium costs and limits may vary. For your business, you should consult with your insurer to ensure that you have the right coverage.
Motor Truck Liability Coverage protects you against losses arising from damages or injuries sustained by third parties while they are in your possession or control, but not while they are traveling with you. Suppose a vehicle carrying your goods is involved in an accident. In that case, this coverage can help pay for medical expenses or other losses incurred by drivers or passengers injured because of an accident involving your vehicle. If you get to know that there is some injury on your property while they are working on it, they will get the insurance money as the insurance will also cover it.
When your clients’ cargo is in your custody, Motor Truck Cargo Coverage protects it. Your insurer will pay for damages that can happen by a covered peril if your company is responsible for loss. Among the common perils covered are fire, collisions, water damage, refrigeration failure, and theft. Regardless of whether a covered peril causes damage to your vehicle, other vehicles, or any other property, any damage to your own vehicle, other vehicles, or cargo in transit will not be able to get a refund.
Standard commercial auto policy or as an add-on endorsement will also increase if we add the above. It only applies to items transported via motor truck at the time of loss. If your vehicle gets in an accident without transporting cargo at the time of loss (for example, if you are driving home from work), this coverage does not apply — you can add it as an additional endorsement or policy modification.
Cargo Coverage for Motor Trucks provides coverage for the transportation of goods by motor trucks. Motor vehicle insurance covers the transportation of cargo, as well as the shipping or delivery of the cargo. And if the cargo is not in the condition like the way in the starting company will need to pay.
It is possible to offer Motor Truck Cargo Coverage on an all-risks or named peril basis. Policies that cover all risks will cover all causes of loss, with the exception of those that are specifically unintentional. Policy names only cover the risks that will be there in the document. Due to their comprehensive coverage, all-risks policies usually have higher premiums.
Q1. What is covered under cargo insurance?
Ans. Basically, it provides protection to the cargo in case it gets stolen or destroyed during transportation.
Q2. What is the difference between cargo and freight insurance?
Ans. Freight insurance is the add-on service to the cargo insurance, an extra set of protection for the truck’s freight or cargo.
Q3. What is a motor truck cargo policy?
Ans. It acts as a safeguard to the cargo in transit or while loading and unloading the goods from the truck.
Q4. What are the two kinds of cargo insurance policy?
Ans. All risk and named perils are the two things that are covered under the cargo insurance policy.
Q5. What is Motor cargo liability?
Ans. This type of insurance protects the owner and the freight while transporting.