When you run a trucking company, you will want to make sure you have enough insurance to cover any losses. One type of insurance many brokers offer is motor truck cargo insurance. While the law may not require you to carry it, some clients may require you to have it when hauling their cargo. Keep reading to learn more about motor truck cargo insurance and its benefits.
What Is Motor Truck Cargo Insurance?
Motor truck cargo insurance protects your client's cargo during transport. You may also hear this insurance called cargo or freight insurance. Generally, you use it on your scheduled vehicles. However, some insurance companies offer it on a blanket basis if you need the flexibility. This insurance has many features that cover several different loss scenarios.
What Does Motor Truck Cargo Insurance Cover?
Motor truck cargo insurance has many features. Here are a few things included in many policies.
- Cargo Insurance
- You will have coverage for damage or loss to your cargo while in transit. Insurance covers common perils like fires and accidents.
- Cleanup and Removal
- If your driver has a covered event, this insurance pays for the cleanup and removal of the truck and product.
- Earned Freight Coverage
- If you cannot deliver your cargo due to a covered loss, this covers the client's claims of lost income.
- Loading and Unloading Insurance
- This provision covers you if the client's cargo suffers damage during the loading or unloading period.
Many policies exclude certain items like high-value art and animals. You or the client may need specialized coverage for excluded items.
What Options Are Available?
Insurance companies often add additional options. You may want these options if you haul a large amount of certain items like refrigerated food. Here are some examples.
- Terminal Insurance
- Terminal insurance covers you if something happens to the client's product while your driver is waiting to unload.
- Refrigeration Insurance
- The coverage pays the client if your refrigeration system breaks down and spoils the product.
- Trailer Interchange Coverage
- If you have a trailer interchange agreement, you must have this coverage. It covers a non-owned trailer if it is damaged during an interchange during the transport period. Usually, this addition limits coverage to only certain vehicle types.
While you transport a third party's cargo, you are responsible for its well-being. Motor truck cargo insurance covers your liability should you be at fault for damaging your client's property. When you have it, you will have coverage for an unforeseen incident during cargo transport.
If you want to know more about motor truck cargo insurance, contact a commercial truck insurance broker for more information.