Cargo Insurance
Motor truck cargo insurance, also known as cargo insurance, is coverage for the materials or items that are being moved from one location to another. If any cargo is lost, damaged or stolen during the transport process, insurance coverage will cover the incurred expenses. This applies to situations during an accident, a vehicular fire, vehicle malfunction, etc.
What Does Coverage Take Care Of?
There are instances where cargo can become damaged while it is still in the truck. However, there are some accidents where cargo will fall out of the truck and end up on the roadway. The cleanup of these materials is also covered as part of your motor truck cargo insurance. If you were transporting hazardous materials or pollutants, it’s incredibly important that these materials are handled properly. The job should be done correctly, regardless of the cost. If any kind of legal proceedings take place because of the spillage of cargo materials, attorney fees and other legal expenses will be taken care of by your insurance provider.
Do All Trucking Companies Need Cargo Insurance?
If your vehicles are transporting cargo of any kind, whether large scale or small-scale items, motor truck cargo insurance is a beneficial item to add on to your insurance coverage. Depending on where you’re operating, there may be government regulations in place that will require you to have this insurance in order to operate in that state.
Coverage Limits
Cargo motor truck insurance includes a limit for the amount of damage that will be covered. When you’re setting up your insurance, you’ll want to work with your provider to ensure that you’re obtaining enough coverage based on the value of the cargo that you’re typically hauling. For financial purposes, you don’t want to over purchase coverage. However, you don’t want to skimp on your coverage and be left with a financial burden if an accident occurs and everything isn’t covered adequately.
A deductible may also be chosen. This is the amount of money that you would pay out of your own pocket if there was a claim. You can usually lower the overall cost of your insurance coverage by choosing a high deductible. However, this can be risky.
ho is Eligible?
There are certain restrictions in place regarding who qualifies for cargo insurance. Typically, you’ll need to operate vehicles such as dump trucks, trailers, tractors, cargo vans, pick-up trucks or box trucks. There are some vehicles that cannot receive coverage, such as buses or garbage trucks. Extremely valuable cargo may fall into a different category. Let us know if you’re planning on transporting items such as money, jewelry, art, medication, animals, explosive materials, etc.
Who is at Fault?
The carrier of materials is typically only found at fault for an incident if it is determined that a major mistake has been made by them directly. Keep in mind that there is a difference between cargo carriers and freight forwarders. Cargo carriers transport items directly. The freight forwarder is a separate entity that works with the client to schedule delivery.
If you would like to find out more about securing cargo motor truck insurance, reach out to StarNet Insurance Group. We will answer any questions that you have. We would also love to walk you through the process of setting up comprehensive insurance that provides you with the coverage that you need. Give us a call today if you’re a business in the state of Illinois or in the surrounding areas.