Motor Truck Cargo Insurance Policy Information
Motor Truck Cargo Insurance. Truck drivers are responsible for moving invaluable supplies across the country. In fact, it can be said that truckers are the people who keep our country going.
In addition to the all-important job of making sure that they - and the products they transport - safely arrive at their destination, truck drivers or the companies that they work for are often liable for the cargo that they carry.
In other words, as soon as the cargo is loaded onto a truck and until it reaches and is signed for at its final destination, a trucker or the company they are employed by is responsible for anything that is lost, stolen, or damaged.
As can be imagined, the costs that are associated with damaged, lost, or stolen cargo can be exorbitant. How can truck drivers or their employers ensure that they are protected from having to pay for such costs? By investing in a good motor truck cargo insurance policy.
Motor truck cargo insurance covers for-hire truckers from liability for a load that gets lost or damaged with rates as low as $49/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked motor truck cargo legal liability insurance questions:
- How Much Does Motor Truck Cargo Insurance Cost?
- What Is Motor Truck Cargo Insurance?
- What Does Motor Truck Cargo Insurance Cover?
- Why Buy Motor Truck Cargo Insurance?
How Much Does Motor Truck Cargo Insurance Cost?
The average price of a standard Motor Truck Cargo Insurance policy for small for-hire trucking operations ranges from $49 to $77 per month based on; where the cargo is being picked up and transported to, types of cargo hauled, average load value, claims history and more.
What Is Motor Truck Cargo Insurance?
Motor truck cargo insurance insures the legal liability of common or contract motor carriers for property of others consisting of cargo, when it is being hauled or transported by the carrier.
Coverage applies only to the extent of the insured's legal responsibility for the property shipped and for the amount of liability for a loss.
The United States Department of Transportation Federal Motor Carrier Safety Regulations provides guidance and direction on the liability of trucking concerns and their responsibility for the property being hauled. The bill of lading or other shipping document also addresses the legal liability of the carrier.
Both the regulations and the bill of lading establish the legal framework to determine the liability of the insured for the property being hauled.
What Does Motor Truck Cargo Insurance Cover?
Motor truck cargo legal liability insurance is designed for common and contract carriers in the trucking business that transport property of others from one point to another.
It covers the carriers' legal liability for those goods.
Coverage is usually written on a continuous basis subject to annual re-rating. Coverage begins when the carrier for hire takes possession of the property being shipped at the origination point and continues during needed stops incidental to the shipment, such as for meals and to rest. Coverage ends when the shipment arrives at the intended destination and the designated party (the consignee) accepts it.
So this insurance covers the cargo that truckers are entrusted with until the goods reach and are received at their final destination. In the event that any cargo on-board is damaged, lost, or stolen, this insurance policy will help to cover the cost of repairing or replacing the items that have been affected.
Some policies may also cover the cost of debris removal or pollutants that may be caused by the debris in the event of an accident; for example, if a truck driver is involved in an accident and the cargo exits the truck, lands on a freeway, and is damaged, depending on the provisions of the policy, motor truck cargo insurance can not only cover the cost of replacing the damaged items, but can also cover the expenses that are associated with removing the debris from the freeway.
Why Buy Motor Truck Cargo Insurance?
Unlike other types of insurance, such as primary liability insurance, which covers injuries to other people or damages to someone else's property in the event that a truck driver is involved in an accident, truck drivers and/or their employers are not required to carry motor truck cargo insurance.
With that said, however, while this type of coverage may not be mandated by the federal or state governments, some shipping companies may require the truck drivers they employ to carry motor truck cargo insurance. As such, it's important to check with your employer to find out if you need to invest in this type of policy.
If your company does not require motor truck cargo insurance, investing in this policy would still be worthwhile. Why? Because it protects you from having to pay for exorbitant expenses in the event that an accident does happen and the cargo you are carrying is damaged, or the goods that you are transporting are stolen or lost.
Additionally, if your policy covers the expenses that are associated with cleaning up debris or pollutants, motor truck cargo insurance can save you even more.
Types Of For-Hire Truckers That Need Motor Truck Cargo Insurance
Truckers: Motor truck cargo insurance for the goods carried for others, and valuable papers and records for licenses and other regulatory information.
Couriers: Motor truck cargo insurance for goods being delivered to clients.
Freight Forwarders: Motor truck cargo carrier coverage with modifications for customers' goods.
Furniture Movers: Motor truck cargo insurance for goods carried for others.
House Movers: Motor truck cargo for the building while it is in the house mover's care, custody and control, and valuable papers and records for customers', suppliers', and regulatory information.
Motor Truck Cargo Insurance Underwriting Considerations
Motor Truck Cargo Carriers coverage insures the legal liability of common and contract motor carriers for the lawful covered property of others they accept for transportation between certain points under tariffs and bills of lading or contracts and shipping receipts.
Coverage applies from the time the carrier takes possession of the cargo to be carried at the point of origin to the time the goods arrive at their intended destination and the consignee accepts them. Some general points to consider are the motor carrier's experience, financial strength, loss history, and the quality of the motor vehicles that make up the fleet. The types of merchandise hauled, their value, and susceptibility to loss, damage, or theft affect the underwriting and pricing decisions.
Location-oriented underwriting must be applied if terminal coverage is provided because having significant values in a terminal at any one time may create the potential for a catastrophic loss.
Common carriers have a higher degree of responsibility for the property they haul than do contract carriers. Contract carriers are responsible only to the extent of their liability as spelled out in the shipping contract, and only if their negligence contributes to the loss. Common carriers are liable for all loss or damage to the goods with only five exceptions. Common carriers are not liable for loss or damage due to acts of God, acts of the public enemy, the exercise of a public authority, fault, or neglect on the part of the shipper, or inherent vice or the nature of the property.
Key elements in underwriting motor carriers include evaluating and determining their financial condition and experience. The carrier's financial condition should be sufficiently healthy so it can afford to hire a suitable number of qualified drivers and purchase and maintain a safe and adequate fleet of vehicles for its operations.
A carrier's experience is measured in part by determining the length of time in business, the type of property hauled over that time, and evaluating the reasons for any changes in the types of property hauled.
Consistency and stability in operations enable a carrier to have a greater level of competency in the work it does. It also eliminates guesswork and learning new tasks, and permits the carrier to focus on safely and efficiently performing the work it is best qualified, prepared, and experienced to do.
Drivers must be evaluated carefully. More control can be exercised over drivers who are employees than over independents or owner-operators. Drivers other than employee drivers must be carefully screened and it is best if the same ones are consistently used. The experience level of all drivers and periodic scheduled training and education are essential to keeping bad habits from occurring or developing.
Periodic and unscheduled drug testing and securing motor vehicle reports are essential activities to maintain control over drivers and to keep up with their current status.
The radius of operations is important. The greater the distance from the base of operations, the greater the number of problems and issues that can develop through the natural loss of control as distances increase. Depending on the radius of operations, the degree and methods of control are affected and must change to respond to individual circumstances.
Terminal operations introduce fixed location underwriting issues and greater concern over fire and other property-based causes of loss. The elements of construction detail, the type of goods stored, public and private fire protection, and the influence of surrounding exposures must be addressed, understood, and problems or shortcomings resolved.
The catastrophe limit becomes a more significant factor when terminals are involved and there are a number of vehicles with loads. The services they provide vary and facilities with truck washes, repairs with welding and painting, and substantial storage operations can change the complexion of the facility and the motor carrier as a whole.
Motor Truck Cargo Insurance - The Bottom Line
Whether you're required to purchase motor truck cargo insurance by your employer or you just want to ensure that you are protected from unforeseen expenses, speak with a reputable insurance broker who specializes in commercial trucking insurance.
Types Of Small Business Insurance - Requirements & Regulations
Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.
Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.
Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.
Insurance is so important to proper business function that both federal governments and state governments require companies to carry certain types. Thus, being properly insured also helps you protect your company by protecting it from government fines and penalties.
Small Business Insurance Information
In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.
The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.
Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.
According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage.
Types Of Small Business Insurance
Choosing the right type of coverage is absolutely vital. You've got plenty of options. Some you'll need. Some you won't. You should know what's available. Once you look over your options you'll need to conduct a thorough risk assessment. As you evaluate each type of insurance, ask yourself:
- What type of business am I running?
- What are common risks associated with this industry?
- Does this type of insurance cover a situation that could feasibly arise during the normal course of doing business?
- Does my state require me to carry this type of insurance?
- Does my lender or do any of my investors require me to carry this type of policy?
A licensed insurance agent or broker in your state can help you determine what kinds of coverages are prudent for your business types. If you find one licensed to sell multiple policies from multiple companies (independent agents) that person can often help you get the best insurance rates, too. Following is some information on some of the most common small business insurance policies:
|Business Insurance Policy Type||What Is Covered?|
|General Liability Insurance||What is covered under commercial general liability insurance? It steps in to pay claims when you lose a lawsuit with an injured customer, employee, or vendor. The injury could be physical, or it could be a financial loss based on advertising practices.|
|Workers Compensation Insurance||What is covered under workers compensation insurance? This type of insurance protects a business and its owner(s) from claims by employees who suffer a work-related injury, illness or disease. Workers comp typically provides the injured employee with benefits to cover medical expenses, a portion of his/her lost wages, rehabilitation costs if applicable, and permanent partial or permanent total disability.|
|Product Liability Insurance||What is covered under product liability insurance? I pays an injured party's settlement or lawsuit claim arising from a defective product. These are usually caused by design defects, manufacturing defects, or a failure to provide adequate warning or instructions as to how to safely use the product.|
|Commercial Property Insurance||What is covered under business property insurance? General liability policies don't cover damages to your business property. That's what commercial property insurance is for. It protects all of the physical parts of your business: your building, your inventory, and your equipment, giving you the funds you need to replace them in the event of a disaster. If you work from home, you might consider a Home Based Business Insurance policy instead.|
|Business Owners Policy (BOP)||What is covered under a business owners policy (BOP)? This is a policy designed for small, low-risk businesses. It simplifies the basic insurance purchase process by combining general liability policies with business income and commercial property insurance.|
|Commercial Auto Insurance||What is covered under business auto insurance? This type of insurance covers automobiles being used for business purposes. This could include a fleet of business-only vehicles or a single company car. In some cases it might cover your car or your employee's car while they're being used for business. These policies have much higher limits, ensuring you can cover your costs if one of these vehicles gets into an accident.|
|Commercial Umbrella Policies||What is covered under commercial umbrella insurance? This type of policy is a sort of "gap" insurance. It covers your liability in the event that a court verdict or settlement exceeds your general liability policy limits.|
|Liquor Liability Insurance||What is covered under liquor liability insurance? It covers bodily injury or property damage caused by an intoxicated person who was served liquor by the policy holder.|
|Professional Liability (Errors & Omissions)||What is covered under professional liability insurance? This type of business insurance is also known as malpractice oe E&O. It covers the damages that can arise from major mistakes, especially in high-stakes professions where mistakes can be devastating.|
|Surety Bond||What is covered under surety bonds? Bonding is a contract where one party, the SURETY (who assures the obligee that the principal can perform the task), guarantees the performance of certain obligations of a second party, the PRINCIPAL (the contractor or business who will perform the contractual obligation), to a third party, the OBLIGEE (the project owner who is the recipient of an obligation).|
Who Needs General Liability Insurance? - Virtually every business. A single lawsuit or settlement could bankrupt your business five times over. You might also need this policy to win business. Many companies and government agencies won't do business with your company until you can produce proof that you've obtained one of these policies.
Business Insurance Required by Law
If you have any employees most states will require you to carry worker's compensation and unemployment insurance. Some states require you to insure yourself even if you are the only employee working in the business.
Your insurance agent can help you check applicable state laws so you can bring your business into compliance.
Other Types Of Small Business Insurance
There are dozens of other, more specialized forms of small business insurance capable of covering specific problems and risks. These forms of insurance include:
- Business Interruption Insurance
- Commercial Flood Insurance
- Contractor's Insurance
- Cyber Liability
- Data Breach
- Directors and Officers
- Employment Practices Liability
- Environmental or Pollution Liability
- Management Liability
- Sexual Misconduct Liability
Whether you need any or all of these policies will depend on the results of your risk assessment. For example, you probably don't need an environmental or pollution policy if you're running an IT company out of a leased office, but you would need data breach and cyber liability policies to fully protect your business.
Also learn about small business insurance requirements for general liability, business property, commercial auto & workers compensation including small business commercial insurance costs. Call us (855) 767-7828.
Additional Resources For Professional Services Insurance
Learn about small business commercial auto insurance which includes liability and physical damage protection for vehicles that are used for business purposes.
- Insurance Automotive Terms Glossary
- Amazon Delivery Drivers
- Ambulance Services
- Big Rig Truck
- Bobtail Non-Trucking Liability
- Charter And Tour Bus
- Commercial Auto
- Commercial Auto Liability
- Commercial Electric Vehicle Insurance
- Commercial Van
- DoorDash, GrubHub & Uber Eats Drivers
- Dump Truck
- Food Truck
- Freight Forwarder
- Household Goods Moving
- Motor Truck Cargo
- Non-Owned And Hired Auto Liability
- Owner Operator
- Pizza Delivery
- Tow Truck
- What Are Commercial Auto Insurance Endorsements?
- What Does Commercial Auto Physical Damage Insurance Cover?
The person injured in an vehicle accident may be a child, a wage earning single parent, a brain surgeon, or even a homeless person. The costs of the accident may be relatively small or run into the millions of dollars, depending on the victim and his or her injuries. Do you have the assets to handle such costs?
Trucking operations in this chapter are among the most heavily regulated in the country. All are subject to multiple types of regulation including municipal, state and federal. The regulations are necessary because potential for severe property damage and/or bodily injury is extremely high.
All carry cargo that if not handled appropriately could have serious consequences to the cargo owner and/or the public at large. Those that carry people must prove that they keep their equipment in good condition and that employees operate in a safe, sober manner.
The insurance company pays amounts an insured is legally obligated to pay as damages because of bodily injury or property damage and certain types of pollution events covered by this insurance caused by an accident and resulting from ownership, maintenance or use of covered vehicles.
The obligation to pay is triggered only by accidental occurrences involving vehicles covered under the Business Auto Coverage Form. An eligible pollution event is covered only if it is connected to a covered bodily injury or property damage loss.
It is important that you have the proper Limit of Insurance to protect your operations. This limit is the most the insurance company pays for the total of all damages, including any covered pollution cost or expense resulting from any one covered accident, is the Covered Auto liability limit of insurance on the declarations.
This limit applies regardless of the number of insureds, autos covered, vehicles involved in an accident, premium paid, or number of claims made.
Minimum recommended small business insurance coverage: Building, Business Personal Property, Business Income and Extra Expense, Accounts Receivables, Computers, Motor Truck Cargo, Valuable Papers and Records, Employee Dishonesty, Money and Securities, General Liability, Employee Benefits, Umbrella, Motor Carriers Liability and Physical Damage, Hired and Non-owned Auto & Workers Compensation.
Other commercial insurance policies to consider: Earthquake, Flood, Mobile Equipment, Signs, Warehouse Operators' Legal Liability, Cyber Liability, Employment-related Practices, Environmental Impairment, Underground Storage Tank, Stop Gap Liability and International Coverages.