Cargo Insurance: What Type Of Protection Will You Need?

A motor carrier accepts a variety of risks on a daily basis, but one of the most basic risks would have to be accepting the responsibility to protect the goods they pick up and deliver under a shipping receipt. In order to alleviate the risks of any damages during transport, motor carriers purchase cargo insurance.

Cargo insurance is purchased by motor carriers so the commodities will be protected in the event of any direct physical damage. Cargo insurance is one of the first types of coverage a shipper will want to verify you have before agreeing to load your truck. Any shipper will want to know that the goods they are loading onto your truck will be covered for its full value.

Cargo insurance is written in more than one form. Cargo insurance is written in Broad Form and Specified Perils. 

Broad Form Cargo Insurance

Broad Form provides coverage for any means of accidental physical damage or direct physical damage to the cargo that is being carried. Broad Form coverage will cover any losses that are incurred by the company, except for conditions that have been specified. There can also be exclusions discussed before the coverage has actually been placed in effect. Some of the exclusions under Broad Form insurance coverage can include personal items and money. 

Specified Perils Cargo Insurance

Specified perils coverage will limit the type of losses that can be covered by providing a list of the type of losses that will be covered by the policy. Specified perils coverage will be a cost-effective type of coverage for small trucking companies or trucking companies that have specific cargo. Specified perils coverage will offer protection from perils that might happen to the cargo or the truck. 

When trying to decide between Broad Form coverage and Specified Perils coverage, you will need to consider the following:

  • The needs of your company
  • The distance you will travel
  • The types of goods you will carry
  • Where the truck will be parked

It is important to know what will be covered in Specified Perils coverage and Broad Form coverage. Reach out to J.E.B. Insurance Services, LLC, and let us help you with your trucking insurance. We provide commercial truck and cargo insurance in Florida, Georgia, Texas, South Carolina, North Carolina, Tennessee, Iowa, Nebraska & Illinois.

David Ott

David Ott