Being an owner operator of a commercial truck comes with various advantages but you have…
Understanding What Is Motor Truck Cargo Insurance & Why You Need It
Cargo damage can occur at any time, so if you’re wondering what is motor truck cargo insurance and if you should buy a policy, keep in mind, accidents, even natural disasters happen every day and it’s too risky to gamble. According to the Federal Motor Carrier Association, a trucking accident can result in an average of $149,000 worth of lost revenue, and that doesn’t include the cargo. Yet, costs are controllable.
Who Needs Motor Truck Cargo Insurance?
Without cargo insurance, any damage to transported goods could potentially put a company out of business. Even worse, a business could face a ruinous lawsuit resulting in judgments. Moreover, many drivers are not even sure if they require a separate policy, mistakenly assuming they can get by with their current liability insurance. If you’re transporting cargo, you need this coverage because it precludes damages to a vehicle.
Cargo carriers transport goods for delivery to third parties by means of trucks. In spite of the greatest care, an accident can occur at any time. There are also many other risks associated with transport. This can lead to damage during loading and unloading, or due to a poorly secured load. The risk of theft, as well as damage due to vandalism, is also very high. Natural forces such as hail or storm also repeatedly cause transport damage. It is also wise to remember, in many cases, there is a legal liability limit. This is why a corresponding insurance policy for cargo is indispensable
Why Purchase Cargo Insurance?
No cargo is ever safeguarded against every type of risk. There are several benefits for cargo insurance, especially for goods that are transported over long distances… Sellers or exporters can make the coverage to protect themselves from a number of unfortunate incidents such as accidents, hijacking of the cargo, or damages during the shipping process from heat or moisture. Depending on the scope of the coverage, cargo insurance can also cover losses resulting from simple negligence.
Bottom line, if you’re wondering what is motor truck cargo insurance really good for, well consider a scenario where the freight is vandalized. Since the underlying value of the goods is insured, any damage during transporting to the destination would result in a partial or total loss payment. Of course, this depends on the conditions of the policy. This approach also makes it easier to recoup any funds that have already been paid out. Seen from this perspective, truck cargo insurance covers the interests of both buyers and sellers and helps minimize any future losses that can occur when goods are lost, stolen, or during transport damage.
Insuring Your Interests
Everyone understands that the fundamental concept of buying motor truck cargo insurance is to protect one’s own financial interests. What often is not understood are the coverages, conditions, and exclusions, and trying to decipher if a policy is the best fit. Various insurance policies can be complicated, depending on the commodity transported; therefore, it’s best to get a few quotes for comparison.