Why Cargo Coverage Is Needed
Cargo coverage is essential for truckers since the Comprehensive General Liability (CGL) of the trucker’s policy does not cover “Goods of Others.” Because the trucker is a “bailee” under common law, they are responsible for any damages to the load. Shippers need coverage to protect their property, while state and federal regulatory agencies also require coverage.
In order to determine which policy form to use, underwriters need to know the owner of the load the insured trucker is hauling for. Options include “for others” (which is the most common), “own product”, and “both.” The commodity being transported also has to be known, in case any special care is needed, such as in the case of refrigerated goods, heavy equipment, or livestock. Livestock, in particular, are very fragile and require the utmost of care to prevent harm and even death while in transit.
Other unique circumstances include times when temporary “special higher limits” are required for high value loads. These limits can be increased for specific loads, routes, or time frames needed to deliver the load on time. The pricing varies, and can be based on the Gross Receipts for the load, or Mileage, the most common measurement for short-term, specialized high value loads.
Types of Cargo Coverage
It should be noted that not all cargo policies are created equal – different policy forms exist, of which the highest and best is the “All Risk” form. However, when this is not available, the “Broad Form” is the next best option to look for. The “Broad Form” is limited “All Risk” coverage, with some common exclusions.
Cargo Coverage Limit
Cargo coverage insurance is applicable during transit, while attached to a tractor, or while at a terminal. All loads are carried under a “Bill of Lading” which usually states “who, what, where, and how much.” Since the Bill of Lading is the primary controlling document for the load, you should ensure that it is perfectly clear and makes sense in all aspects.
To make sure that you are protected, the best thing you can do is to contact a truck insurance specialist agency. Schillinger Truck Insurance can help you navigate and design your cargo coverage insurance needs.
Contact us for more information, or get a free quote. Our thorough cargo coverage policy forms ensure that you will be in good hands!