Cargo Insurance

Cargo InsuranceDo not lose another load because your agent does not know how to get the commodities you want to haul insured. Mayflower Insurance has access to over 100 insurance companies and can always find the right fit for you.

In the case of a loss of truck cargo, motor carriers should purchase cargo insurance, which will cover cargo that has been placed in their care, custody, and control. Mayflower Insurance’s truck insurance specialists can work with you to calculate how much insurance is required for your trucking operation. Careful planning must be done to make sure that you are not under insured and also that the insurance company does not exclude certain commodities. All terms, value of the load should be established and mutually agreed upon prior to picking up the load.

Cargo coverages should always be discussed with your agent to make sure the commodities you are carrying are not excluded by the insurance company. Commonly excluded commodities include: US Mail, Pharmaceuticals, Jewelry/Watches, Cheese, Scrap Metal, Copper, etc. There are only a few companies that will insure these sorts of items.

The U.S. Department of Transportation Code 49 USC 1390 states that drivers operating within federal jurisdiction has to show proof of cargo insurance with a minimum of $5,000 for damage or loss of contents and $10,000 for aggregated damage or loss.

Code 40 USC 13906 as outlined by the U.S. Department of Transportation:

13906. Security of motor carriers, brokers, and freight forwarders

      Motor carrier requirements-
      (1) Liability insurance requirement- The Secretary may register a motor carrier under section 13902 only if the registrant files with the Secretary a bond, insurance policy, or other type of security approved by the Secretary, in an amount not less than such amount as the Secretary prescribes. A registration remains in effect only as long as the registrant continues to satisfy the security requirements of
      this paragraph.
      (2) Transportation insurance- The Secretary may require a registered motor carrier to file with the Secretary a type of security sufficient to pay a shipper or consignee for damage to property of the shipper or consignee placed in the possession of the motor carrier as the result of transportation provided under this part. A carrier required by law to pay a shipper or consignee for loss, damage, or default for which a connecting motor carrier is responsible is subrogated, to the extent of the amount paid, to the rights of the shipper or consignee under any such security.
      Freight forwarder requirements-
      (1) Liability insurance- The Secretary may register a person as a freight
      forwarder under section 13903 of this title only if the person files with the Secretary a bond, insurance policy, or other type of security approved by the Secretary.

      (2) Freight forwarder insurance- The Secretary may require a registered
      freight forwarder to file with the Secretary a bond, insurance policy, or other type of security approved by the Secretary sufficient to pay, not more than the amount of the security, for loss of, or damage to, property for which the freight forwarder provides service.

      (3) Effective period- The freight forwarder’s registration remains in effect only as long as the freight

Mayflower Insurance Services offers free, comparative quotes on cargo insurance from multiple insurance carriers so you can get the best possible rate.

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