When Does Motor Truck Cargo Insurance Apply?

When Does Motor Truck Cargo Insurance Apply?

The trucking freight industry is in the middle of a big change of pace and atmosphere with the move to be more tech-savvy. Plus, with big names like Amazon, Tesla, and Uber getting in on their own trucking industry endeavors, the industry is set for even more change and a tightened capacity.

But even with a major tech upheaval and a shift for companies to ship directly with their clients, the liabilities remain the same. Trillions of dollars’ worth of cargo hits the road every year and the company transporting the cargo is liable for any cargo damaged, lost or stolen. This can be a huge issue for trucking companies, which is why it’s even more important to have the right motor truck cargo insurance plan to protect the cargo and the assets.

What is Motor Truck Cargo Insurance?

Motor truck cargo insurance is a type of liability insurance that covers cargo up to a particular monetary limit the trucking professional determines when they buy a policy. On top of paying for the cost of any cargo that’s lost, stolen or damaged, some policies may also pay costs to remove any debris, like if any part of the load lands on the highway or roads.

While having general liability insurance is a must, motor truck cargo insurance is not required by the federal government, but shipping companies may make it a requirement.

Common and Contract Carriers

Common and contract carriers can carry this kind of motor truck cargo insurance, but it can be used differently for them. For common carriers, or a trucker who offers their services to anyone with cargo, without motor truck cargo insurance, they are liable for any damages except damage or loss when it’s a freak accident or act of God (i.e. tornado, damage due to fault of shipper). For contract carriers, or someone who only hauls for specific shippers, the conditions under which they are held liable must be specifically noted in the contract they have with the shipper.

Purchasing Coverage

Motor truck cargo insurance is a supplemental piece of trucking insurance that can end up being a little complicated. Policies may vary depending on average loads being hauled as well as the commodities on board. There may be exclusions for things like garments, electronics and liquor, as well as sub-limits, higher deductibles and limitations.

Limitations are the amounts that the insurance company will pay out in total for a policy. And there can be sub-limitations that set smaller and more specific amounts that will be paid out, such as limiting its responsibility to pay for certain items, such as high-theft items.

No matter what you’re considering covering, having adequate motor truck cargo insurance needs to be explained and laid out with the right policy insurance representative who can provide the right details.

About Western Truck Insurance Services

Western Truck Insurance Services is a commercial truck insurance agency with roots dating back to 1954. We have evolved into a highly respected, professionally managed, truck and transportation insurance brokerage. The hallmark of our organization is our desire to provide unparalleled service. We go way beyond what you expect to receive from an insurance brokerage. Equipped with state of the art automation, Western Truck Insurance can provide you with lightning fast truck insurance quotes, customer service, Insurance certificates and coverage changes.