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A Closer Look At Motor Truck Cargo Insurance

A Closer Look at Motor Truck Cargo Insurance

A Closer Look at Motor Truck Cargo Insurance

Commercial cargo businesses face numerous risks, as does the transportation industry at large. To help manage these risks, cargo carriers often employ a wide range of insurance solutions, including a type of insurance known as motor truck cargo coverage. Similar to semi truck coverage, this form of insurance offers several benefits to cargo companies, helping to protect against the financial expenses of damage or loss of valuable cargo. In this guide, we will explore motor truck cargo coverage, including how it works and how it can serve as an important component of the risk management toolkit.

Commercial Trucking: A $700 Billion Industry

In the United States, the commercial trucking industry is comprised of thousands of businesses and millions of drivers. The role of this industry is to deliver goods to and from manufacturing and shipping centers to retail locations or other end users. Over 70% of the freight moved in the U.S. is done by trucks; total tonnage of freight handled by motor carriers averages over 10 billion tons. These numbers illustrate the sheer volume and importance of commercial trucking, an industry worth in excess of $700 billion. 

What is Motor Truck Cargo Coverage?

Commercial trucking is considered the lifeblood of American commerce. Billions of dollars in cargo are shipped each year, and in some cases, individual cargo loads are worth hundreds of thousands or even millions of dollars. Protecting that cargo from loss, then, is an important part of the industry’s risk management process. It is important to remember that the motor carrier is liable for any cargo during transport and remains so until the cargo receives its final destination and is signed over to the end user or consignee.

Enter motor truck cargo coverage, a form of liability insurance that is designed to cover cargo up to a pre-specified monetary limit. Just like some forms of semi truck coverage, if the cargo is damaged or lost during transportation, this insurance covers those losses. Some motor truck cargo coverage policies also help to pay for costs associated with cleanup after cargo loss, such as if cargo creates road debris or pollution in an accident. 

This valuable insurance coverage goes far beyond the minimum liability insurance required by federal and state government regulations, and can protect the financial assets of commercial trucking operations. Some carriers opt for their own plans, or may require contracted truckers to obtain their own cargo coverage policies. 

Purchasing Motor Truck Cargo Coverage

Insurance agents with experience in the commercial trucking industry are an invaluable resource when it comes to obtaining motor truck cargo coverage insurance. As with semi truck liability and many other types of insurance policies, there are many options and exclusions to consider. Policy coverages and limits may vary depending on several factors, including:

  • Type of cargo being transported
  • Average load weights
  • Destination of certain cargo shipments
  • Value of cargo

Exclusions for certain cargo commodities may also add complexity to the insurance purchasing process. Some policies exclude coverage for certain commodities like alcoholic beverages, consumer electronics, and garments if those items are stolen from unattended vehicles. There may also be coverage limits for certain high-theft commodities, including those items mentioned above. Because there are many variables, and because this valuable insurance can be so important to cargo carriers, it is recommended that commercial trucking operations purchase insurance solutions through agents that specialize in motor truck cargo coverage. Regardless of policy limits or exclusions, this insurance can help to protect truckers and trucking companies alike from the expenses associated with cargo damage or loss. 

About Gain Insurance Agency

Gain Insurance Agency protects trucking businesses against liabilities and claims in the industry. We combine products provided by respected insurance providers with our expertise and custom packages to meet customers’ individual needs. Our goal is to give you the coverage that you need at the lowest possible price. To learn more about our products and services, contact us today at (877) 424-3344.

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