For-hire truckers face tremendous exposure to liability in the event of damage or loss to cargo. Now more than ever before, most shippers require that truckers provide insurance for the value of the freight while in transit. Cargo liability insurance companies typically offer coverage for claims resulting from the following:
- Striking of a load
Not Every Load Is Eligible
Not every vehicle is eligible for liability protection. Box trucks, tractors and most trailers, dump trucks, car haulers, flatbeds, cargo vans, cement mixers and dually pick-ups are qualified vehicles.
Buses, limos, garbage trucks, passenger vans and hearses are not eligible. In addition, most cargo liability insurance companies specifically exclude certain types of freight, including live animals, property or goods owned by the insured, explosive or radioactive materials, artwork, jewelry and property not included on a Bill of Lading.
How Much Does It Cost?
Cost of cargo liability insurance depends on several factors, including type of cargo and the size of the trucking concern. The insured also will be asked to determine the amount of a deductible and a limit of coverage.
Choosing a higher deductible will sharply reduce premium costs. However, it is important to be certain that the deductible is a manageable figure as the trucker is responsible in the event of a claim.
Satisfy the demands of your shippers while protecting your trucking company’s financial security. Consider a cargo liability policy that fits your specific needs.