Understanding Motor Truck Cargo Insurance Coverage

Admin September 13, 2018 StrongtieInsurance

Motor truck cargo insurance is a kind of insurance designed to protect motor carriers from losses on the roads. It protects the owners of goods and even the insured parties while cargo is being transported or held by the truck owners. For instance, if the cargo is accidentally dumped on a roadway, the insurance will pay for the cost of extracting the pollutants or removing the debris. The insurance may also pay for the legal expenses and the charges that the track owner has to pay for failing to deliver the cargo on time. Below is a discussion of the basic things about motor truck cargo insurance you should know.

Who Needs the Cover?

If you use your track to transport other people’s goods, motor truck cargo insurance is something that you must have. There is a lot that could go wrong when you are handling or transporting such goods. For instance, the cargo could get damaged in the event of a road crash. It could also get destroyed by fire when you are holding it. In the event of such an eventuality, the insurance will go a long way in helping you to pay your clients for the losses incurred.

Cargo Limits and Premiums

Premium cost and cargo limits vary depending on the type of goods being transported, the average load, and where the goods are being transported from and to. On average, cargo limits range from 20,000 to 100,000 dollars. For instance in California, a household mover must carry a minimum of 20,000 dollars to get the PUC authority. On the other hand, the cargo limits for a trucker hauling electronics may be up to 250,000 dollars. Usually, limits are determined by the good’s owners, and the evidence is providing to them by the certificate of insurance from the insurance broker.

Restrictions and Exclusion

Although the motor track cargo insurance can cover theft and a number of other risks, there are exclusions and restrictions in some cases. For instance, if you leave a loaded truck unattended, and there is a theft, the loss may not be covered. Depending on your insurance company, there are goods in transit that may not be covered. For example, some insurance companies exclude goods such as live animals, explosive or radioactive materials, contrabands, money, Jewelry, and art among others. Thus, you have to understand the policy properly and let your clients know what can be covered and what cannot be covered by insurance before you accept to transport their cargo.

The Takeaway

Overall, it is apparent that goods being hauled are exposed to a number of risks. They could be contaminated, broken, and even stolen. Thus, if you have a truck that you use to ship other people’s goods, it is imperative to ensure that you have the insurance, an insurance cover that can protect both the truck owner and the cargo owner against the perils of the road. However, it is imperative to ensure that you understand the policy and its limitations to ensure that you don’t risk getting in trouble that the plan can’t deal with.