Cargo Truck Insurance

Motor Truck Cargo insurance (Cargo) provides insurance on the freight or load hauled by a hired trucker. Commercial Truck Cargo Insurance covers your liability for cargo that is lost or damaged due to causes such as fire, collision, or striking of a load.

If your load is accidentally spilled on a roadway or waterway (Removal Expenses coverage), cargo truck insurance covers the cost to remove debris or extract pollutants caused by the debris. It can also cover costs related to preventing further loss to damaged cargo, legal expenses in the defense or settlement and even freight charges the customer loses because of non-delivery of the freight.

Who needs motor truck cargo insurance?

A growing number of risk managers require truckers to insure their cargo. You can meet that requirement with Motor Truck Cargo Insurance. It pays when you are responsible for damage to or loss of the cargo due to fire, collision or even hitting or running over the cargo that you transport on behalf of a client.

Limits, deductibles, and other details

When you select Motor Truck Cargo insurance, you have to select a limit for your coverage. This limit determines the maximum amount your insurance company will pay for damaged or destroyed cargo. You also need to choose a deductible. A deductible is the amount you agree to pay out of pocket when you have a claim. Choosing a higher deductible is an easy way to lower the price of your insurance, but be sure you choose a deductible that you can afford to pay out of pocket at any time.

Cargo Truck Insurance Required?

Without this protection, a common carrier would be liable for any damages to the cargo being hauled except for incidents involving an act of God. This unfortunate scenario has happened within the insurance industry. For example, let’s say you have a new truck driver calling around for insurance quotes.

Being new to the trucking industry, a new driver may not consider the coverage aspect of cargo. This has happened where a new driver assumed that cargo coverage automatically existed on a commercial truck policy.