Cargo Insurance - Motor Truck & Freight (2024)

FAQs

What is motor truck cargo insurance coverage? ›

What is Motor Truck Cargo Insurance? Motor truck cargo insurance is a type of insurance that covers the trucking company (who is the policyholder) against financial losses that it might be obligated to pay due to loss of or damage to cargo it is transporting.

Freight insurance protects the freight forwarder or carrier who has a legal responsibility for the goods. In the event of a claim, the value is often calculated on the basis of weight. Cargo insurance is designed to protect the sender of the goods – so the manufacturers, wholesalers and retailers.

What is Cargo Insurance? Insurance that generally protects shipments from loss, damage or theft while in transit. This coverage is beyond basic claims insurance that may be provided and it will reimburse for the designated value of the goods if a covered event occurs while the freight is in transit.

MTC refers to the insurance that covers commodities transported by for-hire trucks. It provides coverage against any physical loss, damage, and theft that occurs while cargo is being loaded, unloaded, transported, or waiting for transit at a dock or terminal.

The Limit of Your Cargo Policy: Most limits are $100,000, which should ideally cover your goods in case of minor damages. However, you might have to look for higher limits and a more detailed policy if you're hauling cars. In that case, your limit will also be higher, around $250,000-$300,000.

As the shipper, you are responsible for arranging insurance as necessary. In some cases, the option of insuring cargo is something the carrier or freight forwarder will specifically highlight to you.

Many risk managers now require cargo insurance from truckers. This coverage is designed for for-hire trucking operations.

Cargo insurance policies can cover cargo carried by land, air, or sea and are usually proposed on a door-to-door basis. Coverage offered to the policyholder can vary, but events covered by policies often include natural disasters, vehicle accidents, cargo abandonment, customs rejection, acts of war, and piracy.

The cargo insurance premium on a single shipment is typically calculated as the insured value times the policy rate. And what is insured value? The simplest method to calculate insured value is to add the commercial invoice value of the goods to the cost of freight and add ten percent to cover additional expense.

Who should buy cargo insurance? ›

Insurance for Cargo Shipments? Yes, it Exists, and Yes, You Absolutely Need it. If you're a small to mid-size shipper, a lack of risk management and cargo insurance coverage can quickly drain profits and damage reputations.

Cargo Insurance is beneficial for businesses which manufacture, buy or sell finished products, components or raw materials. You own a business and you are sending a valuable item overseas.

Motor truck cargo insurance, also called cargo insurance, protects goods and materials transported by for-hire truckers. It covers a trucker's liability in case cargo is lost, damaged, or destroyed due to various risks during transit.

Cargo insurance covers the cost of damage and physical loss of goods during shipment. Shippers purchase these policies to recoup their losses should the delivery fail to arrive at its destination in the intended condition.

A motor truck cargo insurance policy covers the freight or commodities you are hauling, and is increasingly being required by shippers and brokers. This insurance covers damage or destruction of cargo whether from collision, fire, rollover, or trailer/cargo strike.

Cargo insurance policies can cover cargo carried by land, air, or sea and are usually proposed on a door-to-door basis. Coverage offered to the policyholder can vary, but events covered by policies often include natural disasters, vehicle accidents, cargo abandonment, customs rejection, acts of war, and piracy.

Contingent cargo insurance is an insurance product used by freight brokers. It covers claims of a complex nature, ensuring cargo is protected even if a general insurance claim fails or is denied. A standard cargo insurance product protects the shipper if cargo is lost or damaged.

Depending on the contract, the company or broker you are hauling for might need to be added as an additional insured or request to be a certificate holder. Truckers frequently receive one of these requests before they can haul a load or comply with a contract with a shipper.