Motor Truck Cargo

“Motor Truck Cargo Insurance” is a type of inland marine insurance that covers losses arising from damage to goods while they are in transit. Cargo insurance is one of the 3 main categories that make up a trucking policy. Auto liability and physical damage are the other main categories. 

As a for-hire trucker, it’s vital to assure your client that their cargo will safely arrive to the destination, or if it doesn’t, they will be fully reimbursed.

What does cargo insurance cover?

Make sure your cargo is covered for a wide variety of risks. It’s never fun to have some type of cargo loss and then find out there was an exclusion for that loss. Some covered risks include:

• Stolen or hijacked goods
• Water leaks in the trailer that damage the cargo
• Cargo damage during loading or unloading
• Refrigeration breakdown resulting in spoilage of your cargo
• Loss of freight charges for failure to deliver the cargo

Also, If your load is strewn about the highway after an accident, you’ll need to make sure you have debris removal coverage. Broad coverage without exclusions is the best way to protect yourself.

What does Motor Truck Cargo Insurance cost?

This coverage will range from $300 – $2000 per year. Rates will vary between insurance providers. There are several factors that drive cargo insurance premiums, such as insurance coverage limits and the types of goods you are hauling. Higher deductible plans will likely be cheaper than their lower deductible counterparts. In general, however, cargo rates are largely determined by what you are hauling and your legal liability coverage limits. We make it easy to shop the market and get a true comparison.

Stand Alone Cargo Insurance vs a Package? One thing to consider is whether it’s cheaper to get stand-alone cargo coverage, also known as a cargo-only policy, or if you’ll come out ahead by
bundling the cargo insurance with your primary liability coverage and physical damage coverage. Most policies for for-hire owner operators are done as a package. Still, it would be wise to shop coverage options both ways.

1. How much cargo insurance do I need?

Limits, deductibles, and exclusions can be confusing. How much cargo insurance you need will depend on what you are hauling, as well as the freight coverage limits the shippers and freight brokers will require for the load. You never want to be in a situation where you are carrying cargo and commercial property that’s worth more than your policy limits. Always compare value of the cargo on your bill of lading to your policy cargo policy limits.

2. How easy is it to get certificates of your cargo insurance?

The last thing you need is to secure a lucrative load but be unable to quickly produce a certificate of insurance to seal the deal. Make sure your insurer can get those to you quickly as part of their insurance services, or better yet, make sure you can get them 24/7 online.

3. Can you get new coverage added quickly?

If you come across a great opportunity that involves cargo outside the normal covered property you haul, you’ll need your insurance agent to be able to help you secure the additional coverage.

Most insurance policy limits range from $50,000 to $250,000. The most common cargo limit is $100,000, and many load brokers will require this amount of coverage for the owneroperators they do business with. Limits above $250,000 are also available, depending on the value of the cargo being hauled. When you pick up the load, your client will want to see “proof of coverage” a copy of your cargo insurance certificate