Motor Truck Cargo Insurance
What is Motor Truck Cargo Insurance?
Motor Truck Cargo insurance provides protection to carriers for their liability in the event of damaged or lost cargo. The policy is purchased with a maximum load limit specified for each vehicle. Underinsuring the cargo can prove disastrous in the event of a claim. It is essential to fully understand the concept of co-insurance.
The carrier assumes responsibility for the cargo and goods they have taken charge of. The extent of that responsibility should be clearly established and understood by both the carrier and the shipper before the shipment is transported. This is typically achieved through contracts, bill of lading disclosures, or published tariffs. Unfortunately, this level of detail is often overlooked by both parties.
This insurance policy requires careful consideration and evaluation before purchasing. Additionally, it is important to regularly assess the nature of your cargo to ensure that the coverage meets your expectations.
What amount does Motor Truck Cargo Insurance Cost?
The cost of motor truck freight insurance can vary significantly. It is determined by factors such as the type of trucking operation, the number of vehicles involved, and the nature of the cargo being transported.
To learn more about the cost of motor truck freight insurance, you can fill out our straightforward truck insurance quote form.
Risks and Provisions
The Motor Truck Cargo policy can be customized to suit your specific operations and exposures, which is typically the case. However, it’s important to be aware that certain exclusions or compliance requirements may result in situations where there is no coverage. A knowledgeable insurance agent will ask you relevant questions to accurately assess your risks.
The Motor Truck Cargo policy can also include provisions to protect the cargo when it is in your terminal or warehouse. This coverage is applicable when the cargo cannot be delivered on the same day or when it is consolidated with other shipments. This coverage, known as storage on the way, remains in effect as long as no additional charge is imposed for storage or warehousing.
Similar to commercial truck liability insurance, motor truck cargo insurance is typically provided on a scheduled vehicle basis. However, it can also be provided on a blanket basis, which is determined and adjusted based on your gross revenues. This approach becomes essential when there are multiple vehicles and frequent vehicle changes.
Warehouseman’s Legal Liability insurance
The Warehouseman’s Legal Liability insurance policy functions similarly to Motor Truck Cargo insurance by providing coverage for goods stored in a warehouse and subject to storage fees. It is sometimes referred to as Bailee’s insurance. To secure coverage, you need to utilize a warehouse receipt, similar to a bill of lading, which outlines the specifics of your storage agreement. Just like with motor truck cargo, careful consideration must be given to the level of risk you are willing to assume under the terms of the storage contract. This is typically determined on a per-pound basis with special conditions agreed upon for declared value.
It is important to note that the warehouse’s legal liability coverage does not protect against damage incurred when any additional work is performed on the goods. In such cases, Property of Others coverage becomes necessary.
