Cargo Insurance
For-hire truck drivers will find it beneficial to carry cargo insurance. In fact, some shipping companies may require that you have a minimal policy on your truck to cover cargo damage or loss before they allow you to move their products. This type of insurance protection helps you minimize financial losses if something should happen to the load you are carrying.
What Does Cargo Insurance Cover?
Cargo insurance covers the loss of cargo up to the policy limit or the value of the load in the event of a collision, dumping of cargo, running over cargo, fire, or theft. You can add additional types of incidents to your policy if you desire.
These policies will pay for the costs of replacing this cargo up to the policy limit. Truck drivers are encouraged to have a policy that is high enough to cover any type of cargo that they may be hauling for the best protection.
Some policies will also cover the clean-up costs for the cargo if your load is dumped on the roadways. However, you must check with your insurance carrier to see if this type of coverage is part of your policy.
What Doesn’t Cargo Insurance Cover?
Every policy is different. However, a majority of cargo policies will not cover the following types of shipments:
• Dangerous materials such as explosives or material marked as radioactive
• Fine art, jewelry, or coins or cash
• Live animals
• Pharmaceuticals, alcohol, or tobacco
• Shipping containers (if used instead of a trailer)
• Property that is owned by the insured
• Property that is being moved by a different carrier
• Property that has been stored for more than 72 hours in the trailer
• Inventory that was not listed on the Bill of Lading
Drivers who are moving these types of shipments may have to purchase special policies to gain coverage for their cargo while it is moving.
Cargo Insurance Policies
The cost for cargo insurance will be based on the dollar value of the policy. Drivers are encouraged to get enough coverage to cover their average cargo shipment. This ensures that if there are any problems with the cargo, they are covered and will suffer minimal if any losses.
The price for this insurance can be reduced by selecting a deductible. Higher deductibles can reduce the coverage amount, but they also pose a risk to the driver. If you select a high deductible policy, you should always have the deductible amount accessible. If you lose a load, you will have to cover the deductible first before the insurance policy kicks in.
More Information About Cargo Coverage
If you would like to learn more about Cargo Insurance for your trucking company, please contact VMC Trucking Insurance. One of our knowledgeable agents can answer your questions and help you select the right type of cargo insurance to fit your company needs.
VMC Trucking Insurance is an Illinois insurance company but can provide policies in AL, AZ, CA, CO, DE, FL, GA, IA, IN, LA, MD, MN, MT, NC, NV, NJ, OH, OK, OR, PA, SC, TX, VA, VT, WA, and WI. VMC Trucking Insurance has been actively writing policies for over five years and currently works with over 50 carriers. Contact them today for all of your trucking insurance needs.