What is Motor Truck Cargo Insurance?

Motor Truck Cargo insurance protects the transporter for his responsibility in the event of damaged or lost freight. The policy is purchased with a maximum load limit per vehicle. Under-insuring the load can prove catastrophic to you in the event of a claim. Make sure you understand the concept of co-insurance.

The transporter of freight, and commodities, assumes responsibility for the cargo he has taken control of. The amount of that responsibility should be clearly established and understood by both the shipper and the transporter before the shipment is moved. This is usually done by contract, by bill of lading disclosure, or by published tariffs. Unfortunately, this level of detail is often overlooked by both parties.

This insurance policy, without question, requires careful thought and evaluation prior to purchasing. In addition, you should constantly evaluate the nature of your freight to make sure the coverage meets the demands.

How much does Motor Truck Cargo Insurance Cost?

The cost of motor truck cargo insurance varies widely. Cost is based on the trucking operation, number of vehicles and the type of cargo.

Learn the cost of motor truck cargo insurance by filling our simple truck insurance quote form.

Risks and Provisions

The Motor Truck Cargo policy can be, and usually is, tailored to meet your operations and exposure. Significant exclusions, or guaranties of compliance by you, create many situations where there might be no coverage. A good insurance broker will ask you pertinent questions that properly address your risks.

The Motor Tuck Cargo policy can also contain provisions to insure the cargo when it is in your terminal or warehouse. This exposure results when the freight cannot be delivered the same day or is consolidated with other shipments. This coverage, considered as storage in transit, exists so long as there is no separate charge made for storage or warehousing.

Similar to commercial truck liability insurance, motor truck cargo insurance is usually provided on a scheduled vehicle basis but can also be provided on a blanket basis which is based, and adjusted, on your gross revenues. This method becomes essential when there are numerous vehicles and many vehicle changes.

Warehouseman’s Legal Liability insurance

Similar to Motor Truck Cargo is the Warehouseman’s legal Liability insurance policy which protects you for freight placed in a warehouse and charged for storage. It is sometimes referred to as Bailees insurance.  You need to utilize a warehouse receipt, similar to a bill of lading, which specifies the terms of your storage contract. As with motor truck cargo, the extent of liability you want to assume under the terms of the storage contract needs careful consideration. This is generally done on a released value per pound basis with special circumstances agreed to under a declared value.

The warehouse legal liability coverage does not provide protection for damage done to product when any form of added work is performed on the product. In that case Property of Others coverage is necessary.