5 Absolute Best Tips for Motor Truck Cargo Insurance

Covering all the risks you will face as a commercial trucker can feel impossible. By securing proper motor truck cargo insurance is one step in providing comfort and security. Liability insurance coverage doesn’t always make sense, especially in the trucking industry. Since you don’t own the load you are transporting, who really has to pay for it if it’s lost or damaged?

Almost all insurance carriers require truckers to sign a form acknowledging their financial liability for cargo damaged while in their possession.

Motor truck cargo insurance makes sure that you aren’t faced paying for thousands of dollars for damaged goods or even total losses. But there’s far more in this flexible form of trucking insurance than meets the eye. Keep these five tips in mind as you review your policy or explore your options for the first time. 

Pay Close Attention to Excluded Commodities

Basic cargo insurance will cover most standard commercial trucking hauls. But there are exceptions. Some of the most common commodities excluded from regular motor cargo insurance are:

  • Paper
  • Money
  • Alcohol
  • Tobacco
  • Automobiles
  • Art and jewelry
  • Pharmaceuticals

Make sure that you are aware of your policy’s coverage’s and exclusions before you take on a job; talk to a carrier before you sign on about different types of coverage you may need such as liquor liability or auto hauler insurance. 

Know Your Forms

Motor truck cargo insurance may seem straightforward, but there are often many sub-limits and other details that need to be thoroughly reviewed before you hit the road. Motor cargo forms often have co-insurance requirements and deductibles you may not fully consider when purchasing a policy.

When you sign a form with a carrier, check the extent of their coverage limits and determine what you’ll be held accountable for. Deductibles will be an amount you will be responsible before any payment will be made by your insurance company. Coinsurance will require you to maintain a minimum limit of coverage to avoid under insuring your cargo and facing potential payment penalties. 

Check Your Cargo Premiums Ahead of Time

Just as different commodities cost more to insure, your premium will be affected by the type of cargo you haul. The type and weight of the cargo and the distance you’re transporting it will all play a factor in how much you must pay for coverage. Most minimum cargo insurance requirements being at $100,000. However, some motor carriers require their drivers to carry a policy that has at least $250,000 in coverage.

Remember, you are the one who sets your limit when you buy cargo insurance. This means you’ll need to be aware of how much your contract is likely to cost as well as how much you could be held responsible for if you’re under insured. 

Always Check Your Coverage Before You Haul New Cargo

You know certain goods are never covered by regular cargo insurance, but that doesn’t mean everything else is in the clear. There are many occurrences where a driver may take on cargo without realizing it isn’t covered by their policy. Make sure you are fully aware of your cargo insurance’s exclusions and limitations.

For example, let’s say you typically transport groceries, but decide to deliver a crate of clothes to a nearby store for some extra cash. Unfortunately, most motor truck cargo insurance has a goods limitation for garments. If you’re involved in an accident and the clothing is damaged, your insurance provider may only pay a small fraction of the cost to replace the garments.

Even being properly insured with a high limit, truckers can wind up facing cargo liability exposures if they don’t pay attention to their policy’s limits. Make sure that you always double-check your insurance and expand your coverage if needed before taking any new jobs. 

Don’t Forget the Bill of Lading

The bill of lading, also known as the BL or BoL, is an important document that motor carriers provide a shipper. This bill lists all the goods that were being transported and other details, including the weight and destination.

Truckers must carry a BoL while they’re under dispatch. You should always ensure your carrier provides one. If you’re ever faced with a claim, the bill of lading is an important piece of documentation you will need to submit to the insurance adjuster.

Make sure that you take your time finding the right cargo insurance. Ask questions, do your research, and enlist the help of an independent insurance agent specializing in the trucking industry. Having the right coverage from the start can prevent financial disasters later. 

Donovan Castaneda

Donovan Castaneda is a passionate storyteller living in Arkansas who loves to share his unique insights into various topics such as politics, lifestyle, culture, and food. He has written and collaborated with multiple publications, and believes in living life with the intention of finding joy and inspiration in every day. Aside from writing, Donovan works as a facilitator in professional development workshops, and continues to learn and to explore life, new people, places, ideas, and opportunities.

About the Author

Donovan Castaneda

Donovan Castaneda is a passionate storyteller living in Arkansas who loves to share his unique insights into various topics such as politics, lifestyle, culture, and food. He has written and collaborated with multiple publications, and believes in living life with the intention of finding joy and inspiration in every day. Aside from writing, Donovan works as a facilitator in professional development workshops, and continues to learn and to explore life, new people, places, ideas, and opportunities.

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