Motor Truck Cargo Insurance Policy Information
Motor Truck Cargo Insurance. Motor truck cargo insurance is a type of insurance coverage that helps protect the owner of a commercial trucking business from financial losses that can result from damage to, or loss of, the cargo being transported.
This type of insurance is designed to cover the cost of replacing or repairing the damaged or lost goods, as well as any additional expenses that may be incurred as a result of the incident.
Some examples of expenses that may be covered by motor truck cargo insurance include the cost of transporting the damaged or lost goods to their destination, the cost of storage while the goods are being repaired or replaced, and the cost of any additional transportation that may be needed to complete the delivery.
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:
- What Is Motor Truck Cargo Insurance?
- How Much Does Motor Truck Cargo Insurance Cost?
- What Does Motor Truck Cargo Insurance Cover?
- Why Buy Motor Truck Cargo Insurance?
- What Types Of For-Hire Truckers Need Motor Truck Cargo Insurance?
- What Are Motor Truck Cargo Insurance Underwriting Considerations?
- What Does Motor Truck Cargo Insurance Cover & Pay For?
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.
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 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.
What Types Of For-Hire Truckers 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.
What Are 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.
What Does Motor Truck Cargo Insurance Cover & Pay For?
Motor Truck Cargo Insurance is a type of insurance policy that provides coverage for goods being transported by a truck, van, or other commercial vehicle. Here are some examples of Motor Truck Cargo Insurance claims:
- Damage or loss of goods: Motor Truck Cargo Insurance can help pay for damages or losses that occur to the goods being transported. For example, if a truck carrying a shipment of electronics gets into an accident and some of the products get damaged or destroyed, Motor Truck Cargo Insurance can help cover the cost of replacing those items.
- Theft: Motor Truck Cargo Insurance can also help pay for losses due to theft. For instance, if a shipment of jewelry is stolen during transport, the policy can provide coverage for the value of the stolen goods.v
- Misdelivery: Sometimes, goods may be delivered to the wrong address, resulting in a loss for the recipient. In such cases, Motor Truck Cargo Insurance can help cover the costs of the lost goods or even the lawsuit filed by the recipient.
- Temperature-related damage: For goods that require a certain temperature range for preservation, like frozen goods or pharmaceuticals, temperature-related damage can be a significant risk. If temperature control systems fail or malfunctions, and the goods become damaged, Motor Truck Cargo Insurance can help cover the losses.
- Improper packing: In some cases, the goods may be damaged during transport because they were improperly packed or secured. In such cases, Motor Truck Cargo Insurance can help pay for the cost of the damage caused by improper packing.
In all of these scenarios, if a lawsuit is filed due to the loss or damage, Motor Truck Cargo Insurance can help pay for the legal expenses associated with the lawsuit, including the cost of hiring an attorney and any settlement or judgment that may be awarded.
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.
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
- Specialty Automobiles, Trucks And Recreational Vehicles
- Specialty Physical Damage
Commercial auto insurance is a type of insurance that provides coverage for vehicles used for business purposes. This includes vehicles such as delivery trucks, company cars, and other vehicles that are used to transport goods or employees.
Commercial auto insurance is necessary for businesses that rely on their vehicles to conduct their operations. It helps to protect the business from financial losses due to accidents, theft, or other unexpected events. It also helps to protect the business from potential lawsuits that may arise from accidents involving their vehicles.
There are several types of coverage options available under business auto insurance policies. These include:
- Liability coverage, which covers damages or injuries that you or your employees cause to others while operating a business vehicle.
- Physical damage coverage, which covers damages to your own vehicle, is also available.
- Other coverage options may include medical payments, uninsured or underinsured motorist coverage, and rental reimbursement.
It is important for businesses to carefully consider their commercial auto insurance needs and to choose a policy that offers the right level of coverage. This can help to ensure that the business is protected in the event of an accident or other unexpected event.
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.