What is motor truck cargo insurance?
Motor truck cargo insurance, also called cargo insurance, protects goods and materials transported by for-hire truckers. It covers a trucker's liability in case cargo is lost, damaged, or destroyed due to various risks during transit. Key elements of this coverage include:
- Removal expenses: Pays for the removal of debris or pollutants caused by the cargo you're transporting.
- Sue and labor: Covers costs related to preventing further loss to damaged cargo and related legal expenses.
- Earned freight: Protects customers from charges associated with an undelivered load.
Progressive Commercial has customizable truck insurance options that meet your needs. Work with our team of experts to start a cargo insurance quote and protect your business.
Who needs motor truck cargo insurance?
Some risk managers require that truckers insure their cargo. Commercial cargo insurance can help cover accidents related to the transportation of goods.
Types of trucks that typically need cargo freight insurance include:
Why do you need motor truck cargo insurance coverage?
Motor cargo insurance provides financial protection against damage, loss, or harm to the materials truckers transport. It covers incidents like fire, collision, and theft.
Many clients and shippers require this coverage to protect their goods, making it an important part of securing business contracts. Cargo insurance enhances your professional reputation and offers peace of mind, letting you focus on your work without worrying about possible setbacks.
Motor truck cargo insurance coverage types
Progressive Commercial offers various types of cargo insurance for truckers, including:
- Motor truck cargo insurance: Protects transported materials and pays for property losses caused by events that damage cargo.
- Motor truck cargo insurance with refrigeration breakdown: Covers losses from spoilage or temperature shifts caused by the vehicle's refrigeration or heating unit failure.
Exceptions and restrictions
Commercial cargo insurance is not offered for garbage trucks, limos, hearses, buses, passenger vans, motor homes, or ice cream trucks. The following cargo types are also excluded from coverage:
- Art, jewelry, money, or paper
- Contraband and pharmaceuticals
- Live animals
- Property in custody of another carrier
- The insured's property or goods
- Property not under Bill of Lading
- Storage greater than 72 hours
- Shipping containers
- Explosive or radioactive material
- Tobacco and alcohol
Motor truck cargo insurance is not available in all states and situations. Start a quote or speak to an agent to learn more.
Motor truck cargo insurance cost
The cost of cargo insurance for truckers is determined by things like business type, truck, driving history, and location.
Work with an agent to learn how these and other factors affect your truck insurance premium and ask about our vehicle insurance discounts. Our team is ready to help you see how much you can save. Start a motor truck cargo insurance quote today.
Why choose Progressive Commercial for motor truck cargo insurance?
As the #1 commercial truck insurer in AmericaΔ, we take pride in what we do. Businesses rely on Progressive Commercial for comprehensive insurance solutions, competitive pricing, and unparalleled service.
If you're interested in learning more about truck insurance coverages, you can start a cargo insurance quote online or speak to our team of experts.
FAQs
Motor cargo insurance provides financial protection against damage, loss, or harm to the materials truckers transport. It covers incidents like fire, collision, and theft. Many clients and shippers require this coverage to protect their goods, making it an important part of securing business contracts.
What does cargo insurance cover? ›
What is Cargo Insurance? Insurance that generally protects shipments from loss, damage or theft while in transit. This coverage is beyond basic claims insurance that may be provided and it will reimburse for the designated value of the goods if a covered event occurs while the freight is in transit.
How much is $100,000 in cargo insurance? ›
Cargo Insurance Cost
| Policy Limit | Standard Cost Per Year |
|---|
| $50,000 | $500 to $800 |
| $100,000 | $900 to $1,500 |
| $250,000 | $1,200 to $2,000 |
Jul 18, 2024
Cargo owners can use an insurance policy to cover a wide range of incidents, including: Fire and explosions. Theft and vandalism. Collision.
What is the difference between inland marine and motor truck cargo insurance? ›
In summary, cargo insurance specifically protects the value of goods being transported against loss or damage during transit, while inland marine insurance provides broader coverage for various types of property involved in transportation, including cargo as well as equipment and other property essential to the ...
What is an example of cargo insurance? ›
Cargo insurance policies can cover cargo carried by land, air, or sea and are usually proposed on a door-to-door basis. Coverage offered to the policyholder can vary, but events covered by policies often include natural disasters, vehicle accidents, cargo abandonment, customs rejection, acts of war, and piracy.
Who should buy cargo insurance? ›
Insurance for Cargo Shipments? Yes, it Exists, and Yes, You Absolutely Need it. If you're a small to mid-size shipper, a lack of risk management and cargo insurance coverage can quickly drain profits and damage reputations.
Why do I need cargo insurance? ›
To protect against loss or damage: Cargo insurance can provide financial protection in the event that your goods are lost or damaged during transportation. To meet contract requirements: Your agreements with your buyers might require that you have cargo insurance in place.
Who buys cargo insurance? ›
Cargo Insurance is beneficial for businesses which manufacture, buy or sell finished products, components or raw materials. You own a business and you are sending a valuable item overseas.
How to calculate cargo insurance? ›
The cargo insurance premium on a single shipment is typically calculated as the insured value times the policy rate. And what is insured value? The simplest method to calculate insured value is to add the commercial invoice value of the goods to the cost of freight and add ten percent to cover additional expense.
The average cost of cargo insurance usually ranges between $400 – $1,800 a year. To get a specific price for your needs, you can connect with an insurance agent and get a quote.
How much is 1 million dollar cargo insurance? ›
The average cost of a $1M cargo insurance policy is around $410 per month or $4,920 per year. While this may be a higher premium, it caters specifically to the needs of truck-based shipping businesses.
What does a motor truck cargo policy cover? ›
It includes protection for cargo handling, loading, unloading, and transportation. The liability protection covers any damage or loss due to accidents, collisions, theft, vandalism, or any other unforeseen circ*mstances. It is a safeguard that protects against any financial losses resulting from cargo-related peril.
What is not covered in cargo insurance? ›
Cargo insurance doesn't cover risks and issues that the shipper has control over it. It is important to keep this in mind so you decrease the chances of your freight being damaged or lost, for instance an insufficient packaging, shipping delays, an incomplete or incorrect shipping product, among others.
Who pays for cargo insurance? ›
As the shipper, you are responsible for arranging insurance as necessary. In some cases, the option of insuring cargo is something the carrier or freight forwarder will specifically highlight to you.
What is contingent motor truck cargo insurance? ›
Contingent cargo insurance is a type of coverage designed to protect transportation intermediaries, such as third-party logistics providers, property brokers, and other forwarders who do not issue bills of lading or have custody of cargo, from the financial responsibility of cargo loss or damage during transit.
Can you have an additional insured on a motor truck cargo policy? ›
Depending on the contract, the company or broker you are hauling for might need to be added as an additional insured or request to be a certificate holder. Truckers frequently receive one of these requests before they can haul a load or comply with a contract with a shipper.
What is the cargo clause in insurance? ›
Within the context of marine insurance, Institute Cargo Clauses serve a specific purpose. This is to specify what is and is not covered when there is damage or loss to the shipment. Cover can include anything from the cargo to the container that holds it and even the transportation used to ship said cargo.
What is cargo insurance claim? ›
Filing claims for damage, loss or theft
To hold a carrier liable, it is necessary to file a claim for the damage, loss or theft within a certain period of time. For uninsured consignments transported as air or sea freight, the consignor must claim damages within two years.
