Breaking Down Motor Truck Cargo Insurance

Breaking Down Motor Truck Cargo Insurance

Trucking businesses are at very high risk as drivers carry trillions of dollars worth of cargo every year. The trucking company transporting the cargo is liable for any cargo damaged or lost until the shipment arrives at its final destination and is signed for by the consignee. Damaged or lost cargo can end up in financial devastation for a trucking company, which is why it’s crucial to secure long haul trucking insurance.

The Policy Explained 

Motor truck cargo insurance protects cargo up to a set monetary limit that you determine when you purchase the policy. It will cover the cost of the lost or damaged cargo itself, and depending on the policy, possibly pay costs for debris or pollutants removal, if a load ends up on a roadway or waterway. The required primary liability insurance only covers injuries or damage to other people or property, when the trucker is at fault for an accident. The federal government does not require long haul trucking insurance for your cargo but those using your services to ship their goods might require you to have it. 

Common & Contract Carriers

Without long haul trucking insurance coverage, common carriers are liable for any damages except damage or loss due to:

  •  An act of nature, such as a tornado
  • A public enemy (warlike actions)
  • The fault of the shipper (improper cargo loading)
  • An inherent vice (product spoilage due to extreme weather)
  • Public authority (authorities’ placing cargo under quarantine due to suspected contamination).

The conditions under which contract carriers are liable are specifically spelled out in the contract the trucker has with the shipper.

Bills of Lading & Contracts

To file a claim after cargo loss or damage, common carriers must provide a copy of the bill of lading to the claims adjuster. The bill of lading is both a shipping contract and a receipt for the goods shipped, providing details such as the date the goods were shipped, what the goods were, their destination and delivery date, and value or a dollar limit for the trucker’s liability. For contract carriers, the details provided vary by specific contract and need to be provided to the claims adjuster when filing a claim.

Your Coverage 

Purchasing appropriate long haul trucking insurance can be complicated if you don’t consult an agent to help. Policies vary depending on the average load, type of commodities hauled, and where goods are being transported. Items such as garments, electronics, and liquor have varying exclusions and limitations, with sub-limits and higher deductibles. Coverage needs are unique and complex, which is why long haul trucking insurance should only be purchased from an agent who specializes in it.

About Tobico Trucking Insurance

Trucking insurance is one of the most difficult types of insurance to obtain, but it doesn’t have to be. At Tobico Trucking Insurance, we are experienced and knowledgable about the trucking insurance market and the needs of trucking operations of all types and sizes. You need an agent who has the specialized knowledge of this ever-changing industry, and we have the products and the dedicated customer service to provide you with what you need. For more information, contact us any time of day at (469) 731-0707 to find out how we can help you.