Cargo Insurance

Cargo insurance is physical loss or damage insurance of goods carried by vessel, road, rail, aircraft, post, or by any other conveyance. This insurance protects those who have an insurable/financial interest in the cargo (buyer or seller and intermediaries, if so structured). Shipping insurance coverage ranges from All Risks to Named Perils, with common extensions as well as customized wordings.

Cargo insurance provides insurance on the freight or commodity hauled by a For-hire trucker. It covers your liability for cargo that is lost or damaged due to causes such as fire, collision, or striking of a load.

If your load is accidentally dumped on a roadway or waterway (Removal Expenses coverage), our coverage pays for the cost to remove debris or extract pollutants caused by the debris. We’ll also pay for costs related to preventing further loss to damaged cargo (Sue and Labor Coverage), legal expenses in the defense or settlement of Claims’ and even freight charges the customer loses because of not delivering a load (Earned Freight Coverage).

Who Needs Cargo Insurance:

A growing number of risk managers require truckers to insure their cargo. It pays off when you are responsible for damage to or loss of the cargo due to fire, collision or even hitting or running over the cargo that you transport on behalf of a client.

Limits, Deductibles, and Other Details:

When you select Cargo insurance, you have to select a limit for your coverage. This limit determines the maximum amount your insurance company will pay for damaged or destroyed cargo. You also need to choose a deductible. A deductible is the amount you agree to pay out of pocket when you have a claim. Choosing a higher deductible is an easy way to lower the price of your insurance, but be sure you choose a deductible that you can afford to pay out of pocket at any time.

Exceptions and Restrictions:

Cargo insurance is only available for for-hire trucking risks on policies with one or more of the following body types: dump truck, tractor, most trailers, box trucks, cement mixers, cargo vans, dually pick-ups, flatbeds and car haulers.

Motor Truck Cargo insurance is not available on garbage trucks, limos, hearses, buses, passenger vans or ice cream trucks. The following cargo types are also excluded from coverage (other exclusions may apply):

• Art, jewelry, money, or paper
• Contraband, pharmaceuticals, tobacco, alcohol
• Live animals
• Property while in custody of any other carrier
• Property or goods owned by the insured
• Property not under Bill of Lading
• Storage greater than 72 hours
• Shipping containers
• Explosive or radioactive material

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