What is cargo liability insurance?
When you haul loads for clients, you’re taking responsibility for the cargo that you’re transporting. Your client is counting on you to deliver the load to its destination safely. But what if something were to happen to your cargo? What if it somehow got damaged? That’s why you might want to consider cargo insurance for your trucking business.
Cargo insurance will cover the load that you’re transporting against losses such as fire, theft, and collision. It will help you cover the expenses that you might have to pay for losing your cargo.
There are several types of cargo insurance...
Earned freight: Earned freight will cover the expenses of your claim and the money that you would have made from the job if your cargo is destroyed. It may also help reimburse your client for the loss they sustained.
Reefer breakdown: If you have a reefer truck, your cargo could spoil if the reefer unit breaks down. Reefer insurance is specifically designed for your type of vehicle and it’s not typically included in cargo insurance policies - you have to add reefer breakdown coverage.
Trailer interchange: Trailer interchange insurance will cover damages to the trailers of others that you might be hauling, like if you’re hired by a big company. For example, if you do the kind of trucking where you haul a trailer to a holding lot and drop it off for someone else to pick up and take to its final destination, you might want to consider trailer interchange.
What does cargo insurance cover?
Check out the following examples of cargo insurance in action...
You’re hauling a load for a big client of yours. You’re cruising along, making good time, when you spot an accident on the other side of the road. You get distracted watching what’s going on and you accidentally run a red light. You get into an accident with another truck and your cargo is destroyed.
You stop to stretch and take a little break. You walk around, grab a snack, and return to your truck...only to discover that the back of your truck has been smashed in and your cargo is gone. Someone stole your load and they're long gone.
Pro tip: Depending on your contracts and relevant state laws, you may be required to carry certain levels of cargo insurance. Make sure that you’re meeting all cargo insurance requirements that you have to.
Understanding the cost of cargo insurance:
- Your drivers: The age, experience, and driving record of your drivers will influence your rates.
- Your claims/losses/speeding tickets: If you’ve had accidents, other claims, or speeding tickets on your record, your insurance rates may be higher because you’re seen as being more of a risk.
- Your vehicle: The year, make, and model of your truck has an impact on your cargo insurance rates.
- How many trucks you have: If you have many trucks, you will have to pay more for your insurance.
- Type of business/What you’re hauling: The loads themselves will influence the cost of your cargo insurance.
- Your radius/Location: Where you haul and how far you go will factor into your truck insurance rates.
- How long you’ve been in business: The longer your business has been around, the more established you are. You may get lower insurance rates for being a mature business with few losses.
Get multiple cargo insurance quotes.
Our team of transportation insurance experts can help you get the commercial truck insurance you need to protect your business. We’re committed to helping trucking businesses save money on their insurance rates by shopping with various insurance companies. And we also like to make insurance easy. We’ve worked with plenty of trucking businesses and helped them get the coverage they need, so we understand the risks you face and the coverages that you need to protect you from them whether you have tow trucks, dump trucks, flatbeds, auto haulers, or any other kind of truck you can think of. To get cargo insurance quotes for your business, all you have to do is fill out our online form or give us a call today. We’re here to help you with any of your insurance needs.