What is motor cargo insurance? If you want to buy motor cargo insurance , read this article to get to know about it.
What Does Motor Cargo Insurance Cover?
Trucking owner-operators and other motor carriers can purchase Motor Truck Cargo Coverage, a sort of inland marine insurance. Inland marine/motor cargo plans, as the name implies, protect for-hire drivers against loss or damage to the cargo they transport on behalf of others. It offers coverage for the owner’s product while also protecting you as the carrier. It’s available from some insurance firms as endorsement to a primary liability coverage.
Why Do You Need Cargo Insurance for Motor Trucks?
Whatever kind of cargo you transport, it is valuable to both you and your customer. You are in charge of the property as early as you pass the lading, and the cargo is turned over to you as the carrier. Different cargo presents a greater danger of theft than others. Few criminals would intentionally target a load of dirt, but they would target your customer’s delivery of river stones used for landscaping. You don’t want to have to pay that loss out of your own money. Other cargoes are thought to pose a pollution concern. Cleaning up and replacing such cargo that is lost unintentionally along a public roadside due to operator error or accident may be very expensive. Will such loss be covered by your commercial auto insurance?
Who Requires Cargo Insurance for Motor Trucks?
Vehicles such as: are strongly advised to have motor truck cargo insurance in addition to commercial auto insurance.
- Drivers of dump trucks
- Truck boxes
- A cargo van
- Car carriers
- Flatbeds
- Vehicles with refrigeration or heating
Any long-haul carrier must purchase this insurance to safeguard the cargo they are transporting. Even though it’s not required by law, some dump truck companies and risk managers will ask contract for hire drivers to carry their own motor cargo coverage.
What Does Motor Truck Cargo Cover?
Cargo Liability: In the event of a collision, fire, etc., your company’s property and cargo are insured.
Removal Expenses: The removal expenses endorsement can help cover costs for debris removal, pollutant cleanup, freight charges, and more if you have an accident or inadvertently drop your cargo on the road.
Legal Fees and Settlements: If you are sued for the cargo’s loss, your insurance provider will pay your legal fees and the settlement amount.
Earned Freight Coverage: If your customer holds you accountable for the missing cargo, this can pay for any costs that their company incurs as a result of the load’s non-delivery.
Damage + Replacement Costs: This policy offers protection in the event that your truck and its contents are harmed due to a cargo, fire, flood, malfunctioning equipment, or theft.
Breakdown of refrigeration or heating systems: If your vehicle experiences a mechanical issue and your refrigeration system fails, this insurance will pay for the loss of the cargo.
The majority of insurance providers that offer cargo protection for trucking companies also cover your freight during unloading and for up to 72 hours following delivery.
Restrictions + Exclusions
What does a motor cargo insurance policy not cover? If extra specialist insurance is required, an insurance carrier may refuse to pay claims for these goods or property while in transit:
- Paper, jewellery, or works of art
- Contraband (pharmaceuticals, tobacco, alcohol) (pharmaceuticals, tobacco, alcohol)
- Livestock and other animals
- Owned goods or property by the insured
- radioactive or explosive substances
- When getting rates, be sure to verify with an agent because different insurers could have their own list of exclusions.
How Much Does It Cost?
The sort of cargo you transport will be one of the most crucial factors influencing the price of your motor truck cargo coverage. Each carries a unique set of transit dangers. As a truck driver, you can be transporting stone, sand, gravel, dirt, or aggregate. Perhaps the contents of your shipments are recycled goods, scrap metal, or building materials. You might transport ice and snow that has been cleared from mall parking lots or airport runways. Others might frequently transport goods from environmental cleanup sites, including polluted soil.
The price of this type of vehicle insurance coverage differs between insurance companies. What you pay will also depend on the available limitations and deductibles that you can select from. A reduced premium might result from a greater deductible and lower limits. Motor truck cargo insurance is not always available from insurance providers. Others that do might limit their coverage to specific kinds of cargo. We advise that you speak with a representative who is aware of the risks you encounter and can create a policy that is tailored to meet your requirements.