Do You Need Motor Truck Cargo Insurance?

Do You Need Motor Truck Cargo Insurance?

The Federal Motor Carrier Safety Administration may not require you to carry motor truck cargo insurance, but can your business afford not to? If the load you carry from point A to point B is damaged, who would be held liable? Depending on the contract you have with the shipper, it could be your company. For many cargos, the shipper may require that a trucker to have this insurance before you take the load.

Motor truck liability insurance varies by the type of load. Some items, such as clothing, electronics, and liquor have higher risks, which will make the insurance coverage have higher deductibles and sub-limits. There may be exclusions on a policy that takes off coverage for certain types of property damage. It’s important to you to know the exclusions and limitations of every insurance policy that protects your business. Logistics providers should work with the insurance agent to make sure that it provides the most effective coverage for the load and trip.

Purchasing motor truck cargo insurance is a complex underwriting process. To get the best coverage, make sure you work with an agent and company that specializes in this type of policy. Your cargo is vital to your business. Replacing it in the worst-case scenario would be expensive and cripple your financial security. Take care of your company and protect your hard work with the right insurance.