The job of a trucker is to transport items from one place to another. That means someone will entrust you to carry their belongings or products. So, if something happens to those items, that could signal a loss for the trucking company and others. Most trucking insurance companies offer cargo coverage for this very reason. Let’s discuss this topic a little more in-depth.
Truckers have an obligation to deliver their cargo on time, in one piece, to its destination. This coverage can prove instrumental in case this does not happen.
The Benefits of Cargo Insurance
When you operate a truck with cargo, someone else entrusts their assets to your care. The responsibility for damaging these items might fall on your shoulders.
Let’s say you must deliver a shipment of clothing from a manufacturer to a boutique. These items have a value of several thousand dollars. During the transport, you have a wreck. The truck catches on fire, destroying the items in your trailer.
The wreck causes the loss of the clothing someone expected you to deliver. As a result, the manufacturer and the recipient lose their items. That’s a financial blow to them, and they could hold you responsible for these losses. Cargo coverage, as a result, could help you pay for the lost items.
Specific Coverage Elements
Sometimes, it’s hard to understand how trucking insurance covers cargo losses. Usually, coverage will contain sub-limits that apply to certain loss situations. These can include:
- Removal coverage might pay for cleanup and pollution removal from damage
- Legal expenses protection extends to the costs of lawsuits or settlements brought by those whose items you lost.
- Sue and labor coverage extends to your actions after losses. It will ensure you can prevent further damage to items that survive losses
- Loading and unloading insurance insures items during these stages of transport
- Earned freight coverage insures your income loss because you cannot deliver products
In all cases, limits, exclusions and deductibles will apply to your cargo coverage. For example, your policy might not cover expensive jewelry or hazardous materials. You might have to turn to riders or extensions to get the appropriate protection.
At times, limitations will exist based on the cargo you carry. For example, you might usually haul groceries worth $50,000. You have a coverage limit of $100,000 coverage (minus deductibles) on these items. However, if one day you carry clothes worth $200,000, your target limits might only provide $30,000 coverage. You might have to pay more than $170,000 out of pocket if you don’t have protection extend to these unique situations.
So, talk to your insurance agent today by calling or texting 877-400-0500. We can help you obtain the appropriate limits for your trucking cargo.