Get Recommendations for the Best Insurance

    Motor Truck Cargo Insurance Defined

    Startup cargo transporters tend to underestimate in-freight loss and damage. Unfortunately, you cannot wholly eliminate trucking risks and perils. Distribution centers state that 11% of products arrive damaged. Large companies can compensate the losses with their profits from other transactions, but uninsured independent owner-operators might struggle to recover financially.

    Apart from observing safety practices when transporting goods, look into the different types of commercial truck insurance coverage for cargo protection. Motor truck cargo insurance coverage includes freight liability during unforeseen accidents like striking of load, fire, and vehicle collision.

    Understanding Motor Truck Cargo Insurance

    Motor truck cargo insurance coverage pays for in-transit cargo defects and vandalism in the event of a fire, road collision, striking of load, theft, or abandoned shipment.

    For example, if a carrier gets into an accident mid-project, an uninsured owner-operator shoulders the expenses to repair the vehicle, the cargo, and the damaged public property. Meanwhile, insured operators can use their policies to cover cargo and freight charges. We recommend combining cargo coverage with other insurance products for total protection.

    What Motor Truck Cargo Insurance Covers

    Owner-operators and carriers that use the following owned or permanently leased for-hire vehicles can get motor truck cargo coverage:

    • Dump trucks
    • Car haulers
    • Tractors
    • Cement mixers
    • Trailers
    • Flatbed trucks
    • Box trucks
    • Cargo vans

    Who Benefits From Motor Truck Cargo Insurance?

    Every motor carrier should look into motor truck cargo insurance. First, they benefit the policy owner—you. Trucking service providers hold the responsibility of keeping their clients' cargo safe. If unforeseen accidents or perils transpire, you will cover the damages. However, insured businesses can file claims to avoid paying the expenses out of pocket.

    Second, they benefit the lessor. Owner-operators that use for-hire trucks can file claims in specific instances to cover damage to leased vehicles.

    Third, they benefit your cargo owners. Clients will feel at ease knowing that your services cover all types of security and hazard risks throughout the process.

    Top Motor Truck Cargo Insurance Options

    Dozens of insurers offer a variety of truck insurance products. First-time owner-operators with not much business experience might have trouble sorting through their options. To make insurance shopping easier, we made a list of the top insurance providers for truckers to work with:

    Best for New Trucking Companies: Nationwide

    • Competitive rates
    • Extensive discounts and promos
    • Very accessible to new clients

    Nationwide currently ranks as the longest-standing truck insurance provider in the country. In fact, they have been insuring clients in the trucking services industry since 1926.

    Truckers continue to trust them because they focus on cost efficiency. If you combine their competitive business insurance rates with their extensive discounts, even small-scale, independent owner-operators can get cargo coverage.

    Plus, they have more than 32,000 office professionals scattered across the country. So no matter what city or state you live in, you're bound to come across an agent who is willing to help.

    Best for Policy Flexibility: Progressive Commercial

    • Variety of truck insurance products
    • Solid company reputation
    • Flexible discounts

    Progressive Commercial understands that cargo truck insurance only covers a portion of the risk your business carries. If you want your policy to pay for more than cargo loss and damage, explore all available riders. The company offers an extensive selection of add-ons that covers various losses, from freight charges to legal expenses.

    Best for High-Risk Tuckers: The Hartford

    • Services focused on trucker safety
    • Excellent trucker management programs
    • Easy application process

    The Hartford's FleetAhead management system best suits high-risk operators who manage large fleets. You can use their streamlined, user-friendly program to track real-time business performance. Collect, peruse, and analyze the data to minimize the risks you expose your truckers to—especially if you transport hazardous goods or property.

    Independent owner-operators carry significant risks compared to large trucking companies. However, Assured Standard shares that you can protect yourself by getting sufficient insurance coverage. Click here to learn about independent owner-operator insurance.

    Frequently Asked Questions

    What is a motor truck cargo policy?

    Motor Truck Cargo insurance is a coverage that provides protection for the cargo hauled by truckers. It can provide financial compensation if, say, your truck overturns and damages some of its load or you are found liable in an accident damaging another driver's property.

    What does a cargo policy cover?

    Cargo insurance pays you for damages to your cargo caused by a covered event. These events usually include natural disasters, vehicle accidents, customs rejection or abandonment of the shipment, and war activities like piracy. The coverage could be anywhere from $0 to $10 million depending on what's being shipped in addition to when it needs to arrive at its destination!

    Is cargo insurance required?

    Insurance coverage can help protect your cargo from loss or damage that could occur during transit. It is recommended for all shipments, but you should weigh the costs against potential losses to determine if it's worth purchasing this insurance.

    Why do we need cargo insurance?

    Cargo insurance is a necessity in the transportation industry. If you are handling cargo, it is important that you protect yourself against possible loss or damage by purchasing cargo insurance.

    How much cargo insurance do I need?

    It is important to understand the cargo coverage requirements in your state. Federal regulations typically max at $5,000 for cargo insurance but certain shippers and brokers require as much as $100,000 in commercial trucking insurance. The deadline to purchase freight transportation liability protection can vary depending on where you operate so be sure that you have taken care of this before it's too late!

    Do not skimp on motor truck cargo insurance. The loss of paying a few hundred dollars on annual premiums pales in comparison to damaged cargo losses. In the worst-case scenario, independent owner-operators who refuse to get cargo liability insurance could end up facing millions worth of losses.

    Also, cookie-cutter policies with generic coverage offer little to no benefit. Insurance needs vary based on several factors, so account for all the necessary information and unique details when calculating your coverage.

    At Assured Standard, we help educate trucking companies on using insurance policies to guarantee business continuity during crises. Visit our resources page for more information about getting business insurance.

    assured standard logo
    Assured Standard will protect your business with the right insurance, depending on your needs. Now more than ever, it’s crucial to have the right general liability insurance experts on your side. Protecting the future of your business starts today.
    Copyright © 2021 Assured Standard. All Rights Reserved.
    linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram