Companies looking to protect their cargo may be looking to invest in the cheapest truck insurance possible under federal rules. Legally` speaking, the Federal Motor Carrier Safety Administration only requires household goods motor carriers and household goods freight forwarders to maintain a minimum cargo insurance requirement.
The prescribed cargo insurance amounts are $5,000 per vehicle and $10,000 per occurrence. Common exclusions to cargo coverage include losses that could have been preventable, such as improper packaging, intentional insurance fraud, and theft of goods by employees of the insured party.
However, investing in higher cargo insurance limits than the minimum can provide greater protection in the event that your load is damaged by the weather, theft, collisions, or other risks that you may face during transport by sea or land.
It is best to avoid underinsuring your load in the event that you may fail to make a claim. It’s also important to read up on any exclusions or coverage limits that you may face when comparing different cargo insurance quotes. Usually, these exclusions can be addressed by the shipper if they aren’t covered by your insurance company.
If you want to learn more about how the type of truck you have can impact the cost of insurance coverage, check out the rest of Assured Standard today!
Ora Price is a licensed insurance producer. Since she majored in Finance at the University of San Diego, she knows how to deal with both clients and insurance providers alike.