Streetsmart insurance Blog
If you haul cargo for an organization, independent customer, or the general public, you are responsible for their goods while you are in transit. It your cargo is damaged, stolen, or destroyed, you could be held liable for the total value of their property. Motor truck cargo insurance will cover your expenses if their cargo is destroyed while it is in your possession.
Although primary liability insurance is required by federal and state governments, motor truck cargo insurance is not a mandatory coverage. Many truck drivers choose to forgo motor truck cargo insurance to save costs, and are left with expensive bills when their clients’ cargo is destroyed. To protect their investment and avoid lawsuits, more and more clients require motor truck cargo insurance before truckers can secure a contract.
Who Needs Motor Truck Cargo Insurance?
Motor truck cargo insurance protects carriers that haul clients’ goods. The American Association of Insurance Services places these truckers in two distinct categories: common carriers and contract carriers.
Common Carriers: These truckers haul cargo for anyone who needs their services, without an exclusive contract. If your business provides transportation services to the general public, you are responsible for everything you move. Without motor truck cargo insurance, you are fully liable for damages unless your cargo is destroyed due to an act of God, client error, war, inherent vice, or police interference. Motor truck cargo insurance can provide you with an added layer of protection against customer claims, which will only increase as you expand your customer base.
Contract Carriers: These truckers haul cargo for clients under contract. If your business negotiates with specific companies and independent clients to haul their goods, you are responsible for meeting the terms of your contract. If your clients’ goods are damaged in transit, they have binding documentation that they can use in court. Motor truck cargo insurance will shield your business from unnecessary claims and protect you from financial liability.
Street Smart Insurance is committed to providing affordable coverage.
Whether you are looking for your first truck insurance policy or you are shopping for a better price, our agents are ready to help.