If you offer cargo transportation services, you may be held responsible for the loss of property that your transport is damaged or damaged or destroyed. There are numerous dangers that could cause damage to your cargo while it travels toward its final destination. This range ranges from accidents involving vehicles or overturns, to fires and theft. Apart from the expense caused by the accident the damage or destruction of a product can have a detrimental effect on your relationship with your customers. This is the reason it's crucial to have a sufficient insurance policy for the products you carry. If your insurance coverage isn't enough to cover the cost of a claim the company may be required to cover damages, especially if your product is valued.
Motor Cargo Coverage for Trucks is a form of insurance for marine vessels inland that covers property and goods while they are transported by motor vehicle. It safeguards the property worth of the customer's property while in the hands of the freight company. The cost of premiums and the limitations for this coverage may vary widely based on the type and the amount of cargo that is being transported in addition to the distance traveled and length of time spent in transport. It is important to speak with your insurance provider to confirm you've got the right insurance coverage for your company.
Your logistic company is transporting a load of frozen food items in a refrigerated truck. In the course of transport, the truck gets hit by an accident which causes the refrigeration to fail and causes the food to become spoiled. The Motor Truck Cargo Insurance would cover the cost of damage.
It is important to comprehend the distinction between Motor Truck Cargo Coverage and motor carrier liability coverage which is a kind that is a type of auto liability insurance. Cargo haulers are legally obliged to buy a minimum sum of liability insurance and the insurance covers physical damages to the property of third parties and bodily injuries. Although motor carrier liability insurance will cover damaged property such as another vehicle that you smash into, or a fence, building, or structure that you crash into, it doesn't protect the cargo you transport.
Motor Truck Cargo Coverage protects the cargo that you transport for clients while under your control. If your cargo is damaged by an insured peril and your company is found liable, your insurance company will cover the damage. The most frequently covered perils are collisions, fire and refrigerator failure, damage from water, and theft. It is important to remember however that any damage to your vehicle, any other vehicles, and any property unless it's for transporting cargo even if it's a covered incident, isn't covered.
Motor Truck Cargo Insurance typically doesn't include the following situations:
In cases where an incident involving nuclear hazards causes a fire, the loss or damage directly resulting from the fire could be covered in the event of a fire being an insured risk.
Damage or loss resulted from inadequate packing or poor handling.
Damage or loss due to direct loss. If losses occur due to delays, adverse economic conditions or loss of use, or any other indirect cause they will not be insured.
breakdown of equipment for refrigeration. However, if refrigeration equipment fails because of the cause of loss that is protected by your insurance provider like vandalism, explosion, fire, or an accident in a vehicle the damage would be covered.
Damages resulted from imperfections in the property or degradation. Damage caused by corrosion or rust, as well as any other cause of natural deterioration, could not be covered.
Damages due to high temperatures, or extreme dampness.
The damage is caused by vermin or insects.
Property is lost in the event that it was surrendered at will due to fraud.
Motor Truck Cargo Coverage may be excluded from coverage for certain types of property. Certain kinds of property are thought to be more at risk of being stolen, are particularly expensive to replace, or are particularly risky and insurance is generally not available for these types of property. Transporters who transport valuable or hazardous cargo are required to secure insurance through an endorsement or buy an insurance policy to protect against these risks.
The types of property that are not typically covered by insurance include:
Coins, money, or stamps
Jewelry, gold, precious metals, or precious stones
Furs
Live animals
Artworks
Contraband
In some instances, Motor Truck Cargo Coverage may offer lower sub-limits as well as higher deductibles than the overall insurance maximum for certain kinds of cargo or causes of loss.
Motor Truck Cargo Coverage is an important form of insurance that trucking companies need to take into consideration. There is always the chance that cargo may become damaged or destroyed in transport. If your business could be responsible for the damage, Motor Truck Cargo Coverage is able to help offer financial protection. This type of insurance is typically required by customers that contract you to transport their goods. It is also mandated by the FMCSA for vehicles that are involved in the transportation of household goods. Making the investment in Motor Truck Cargo Coverage will provide you and your customers with the assurance that any damages that occur during transportation will be covered completely.