For transporters moving large amounts of freight on a regular basis, choosing the right cargo insurance policy is essential. Also known as motor truck cargo insurance, cargo insurance protects freight and commodities hauled by transport truckers. This insurance is required, in many cases, by any companies who hire truckers to transport their goods. It protects the trucker from liability if the contents of his or her truck is damaged during transportation due to an accident or other incident. If you are a for-hire trucker or business owner with a transportation fleet, the Coastal Insurance Group, Inc., can help you find the right policy to keep you protected. We insure clients in Key Biscayne, Pinecrest, and Doral, Florida.
The Basics of Cargo Insurance
When creating the right cargo policy, you’ll determine a coverage limit, which is how much your policy will pay out to cover the cost of any damaged freight. You must also choose a deductible, which is how much you will be monetarily responsible for before the policy pays out. The combination of these factors will determine your monthly premium payment. One way to ensure you have a lower premium is to choose a higher deductible, but it’s important that you have money set aside to cover this cost at any time when the unexpected occurs.
It’s important to note the difference between commercial truck liability insurance and cargo insurance. While both provide reimbursement for any damage to transported freight, commercial truck liability usually includes blanket coverage for a trucking company’s regular activities, while cargo insurance is often purchased on a per-trip basis.
Cargo insurance reimburses the cost of freight if the insured driver is involved in an accident on the road or while parked, regardless of who is at fault. It also pays out claims for cargo that is dumped out during transport, and even cargo that has been run over. If a covered truck is damaged by certain weather incidents or fire, cargo insurance also covers the cost of repairing or replacing the freight. Last, but certainly not least, cargo insurance pays to cover legal fees that a driver incurs because of being sued because of damaged cargo, or if the company paying for transport charges the driver for losses resulting from a load that is not delivered.
If you prefer, you can extend your cargo coverage to protect any freight while it is stored in a warehouse or terminal before the transport journey begins.
Cargo insurance policies can protect tractor trailers, box trucks, cement mixers and other trucks transporting construction supplies, cargo vans, flatbeds, car transport trucks, and more.
Most insurance companies set restrictions on what types of freight they will cover. Some commonly restricted items include jewelry, money, art, live animals, and certain dangerous or explosive materials. If you desire to transport any of these items, we can explore alternative coverage options.
Your Partner for Cargo Insurance
If you are a for-hire driver transporting freight, it’s essential that you protect freight and yourself from financial responsibility when the unexpected happens. If you’re local to Key Biscayne, Pinecrest, or Doral, our team can help you find the right level of coverage at the right price. Contact us for a complimentary consultation and quote.