Cargo Insurance: Providing Coverage On The Freight

If something goes wrong with all the goods you are carrying in the back of the truck, who will be responsible? The cargo in the back of your truck will require its own insurance coverage based on the type of products you are hauling. The majority of motor truck cargo policies can effectively insure the freight for the clear-cut exposures, such as the following:

  • A collision 
  • Theft
  • Fire

When you want to protect cargo that could be potentially damaged by a change in weather, such as a breakdown, you have the opportunity to add reefer coverage. While this type of coverage can protect your truck from breakdowns that resulted from temperature changes, reefer coverage will not provide coverage for trucks that were broken down due to poor maintenance.

Many cargo insurance coverages can be purchased under $10,000, but a truck cargo insurance policy for $100,000 is generally one of the most requested policies for drivers carrying general goods. Typically, a deductible for a cargo policy is $1,000. Reefer, theft, and many commodities that are endorsed onto a policy will have a higher deductible because of the greater exposure to risks. 

Many policies will also include debris removal. This type of coverage will pay for expenses that need to be used if your load has been accidentally dumped on the highway. You will also be able to obtain coverage to pay for costs related to the prevention of additional damage to cargo. 

An increasing number of risk managers will make it a requirement that their drivers equip their trucks and goods with cargo insurance. There are cargo types that are excluded from coverage, including the following:

  • Live animals
  • Storage greater than 72 hours
  • Shipping containers
  • Explosive materials
  • Cargo that is in the custody of another carrier

Cargo insurance is not available in every state and in every situation, so it is important to have a clear understanding of how cargo insurance works. Contact us to learn more or to request a quote.

David Ott

David Ott