What’s the Difference Between Liability Coverage and Cargo Insurance?

One of the biggest liabilities commercial truck drivers and carriers face is damage done to other people. Whether it’s through a collision, unsafe driving, or unsecured cargo, truckers can be held liable for a lot of damage done to third parties. Make sure your insurance coverage thoroughly protects you and your business, and make sure the different policies do what you expect.

What’s the difference between cargo insurance and liability coverage?

Oftentimes, truckers only really need trucking liability coverage. But that narrow requirement only protects you and your business from claims that come from a truck accident. If your truck is in a collision, the other party can create a claim or a suit against you for property damage or injuries you caused. Even if the accident is not your fault and you’re found not responsible for any payments, this liability coverage can help pay for legal fees and court costs so you don’t have to. But this coverage doesn’t protect any damage done to your side of the equation: damage to your truck, your driver, and your cargo isn’t covered.

Cargo insurance, on the other hand, helps cover physical loss of or damage to the cargo so long as it’s from external causes. Even though cargo insurance may not be legally required, many distributors and manufacturers require it in their standard contracts with truckers. Being unable to meet their standard insurance minimums often means they will remove you from the list of possible service providers.

If you want to make sure your coverage currently has both of these elements, or you want to expand your coverage to protect all elements of your business, go to J.E.B. Insurance, LLC here. We provide commercial truck insurance in the states of Florida, Georgia, Texas, North Carolina, South Carolina, Tennessee, Illinois, Iowa & Nebraska.

David Ott

David Ott