Commercial Truck Cargo Insurance

Commercial Truck Cargo Insurance protects your cargo in transit. It covers a variety of events, including theft and fires. You can purchase it with a combined policy or as a stand-alone policy. It can be all risk or free of particular average (FPA).

Other options include non-trucking liability and occupational accident coverage. They can be added to your basic and specialized policies.

Cargo Coverage

Motor truck cargo coverage pays for the loss or damage to cargo you haul on behalf of your clients. It typically requires a coinsurance agreement, which means that you have to insure your cargo at a certain percentage of value to receive full coverage for claims. It can be combined with physical damage or as a stand-alone policy. It covers your trailer, temperature control machinery and appliances, as well as your equipment that keeps your freight secure. It also includes legal expenses for defending yourself against liability lawsuits brought by the owners of your client’s property.

This type of coverage applies from the time you load up your cargo until you sign off on its delivery at the destination. You can choose from all-risks or specific hazards policies, which vary in the coverage they offer. It is often provided on a scheduled vehicle or blanket basis, depending on the size of your fleet and the type of cargo you transport.

Physical Damage Coverage

Commercial truck physical damage insurance helps cover costs to repair a named truck and trailer after an accident, regardless of the cause. It covers repairs or replacement cost up to the Actual Cash Value (ACV) of the truck, minus the deductible. It can also include towing and storage expenses subject to a limit. The premium for this coverage is determined by the Stated Amount, your deductible and other factors.

The cost of purchasing or leasing a truck is a significant investment, and for many truckers the loss of their truck would be devastating. This is why trucking companies invest in this type of insurance.

Trucking insurance isn’t required by law, but most lien holders require it to protect their investment. Aside from being a crucial safety measure, it’s essential for protecting your fleet against unforeseen events such as theft or vandalism. It can also protect against the costly wear and tear of equipment such as tarps, binders and chains.

General Liability Coverage

The trucking industry has a number of overheads that can be costly. These include damages that happen while loading or offloading the cargo, lawsuits filed by a third party after a delivery goes wrong, and attorney fees in case of a trucking accident.

Commercial truck cargo insurance offers protection from these and other financial losses arising from the transportation of freight. Besides the standard coverage, trucking companies can choose a broad general liability policy for unforeseen expenses.

Motor truck cargo legal liability coverage covers the loss or damage to goods that you are carrying, as specified by a bill of lading and up to the point it is delivered and signed for at its destination. It also includes expediting expense coverage in the event that you have to pay for faster shipping to meet a deadline. Physical damage coverage for trucks that transport cargo covers perils such as fire, theft, water damage, and collision. It can also be expanded to cover bobtail policies, which cover the truck when it is not hauling cargo and travelling between points of pick-up and drop-off.

Excess Coverage

In the trucking industry, there are many types of insurance coverages that are specific to cargo transportation. Examples include bobtail insurance, terminal operation coverage, transport plate liability coverage, and specialty liability coverages for events that occur off-site from a commercial trucking company’s premises.

Cargo insurance is important because accidents and thefts can still happen. Just like you purchase car insurance, freight brokers must ensure their motor carriers have adequate limits to protect the shippers’ interests.

When the limit isn’t enough, excess coverage will cover the gap. This coverage is important for freight brokers because it allows them to increase their standard cargo limit and gain the trust of larger shipper clients. Because the market is changing, and losses are outpacing premiums, it’s critical for retailers to start their excess insurance renewal process earlier than ever. We have the experience, data analytics and relationships to provide creative solutions for trucking companies seeking excess insurance protection. Contact us today to get started!