Motor truck cargo insurance – Damage, accident, fire and loss are some risks that motor truck cargo should face while driving on the roads. Since the risks can happen anytime without knowing where, motor truck cargo insurance is the best solution in this situation. In short, it gives protection specifically for truck drivers. To know this type of insurance better, let’s take a look this following information.
About Cargo Insurance
Basically, this type of insurance gives liability coverage for cargo which has to face unfortunate situation such as collision, fire or striking of a load. There are some types of coverage that is available for truckers.
One of them is to give protection when the load is unexpectedly dumped on a waterway or roadway. Purchasing this policy enables the truckers to get coverage. Motor Truck Cargo Insurance will pay all the cost of debris removal and pollutant extraction caused by the debris.
Another type of coverage is to pay the costs regarding with the further loss prevention to car damage. Last, there is coverage that is specifically used to pay the legal expenses that the truckers have to face in the settlement or defense of the claims.
Who Needs Cargo Insurance ?
As previously mentioned, truckers are the ones that can take advantage of this insurance. With the increasing number of risks that truckers have to face, their cargoes have to be protected through insurance. If you as the driver have to be responsible for the loss, to stay safe, you will need this insurance.
When the truckers have to have unfortunate situations like collision, hitting or running over the cargo or even fire that you have to transport on the behalf of a client, the need of this motor truck cargo insurance is becoming more urgent.
Trucker what we are talking about is one of the two carriers of this insurance. There are two carriers: common and contract carriers. Common carriers are trucker that has been mentioned before. The contract carriers are those who haul only for a particular shipper under a negotiated contract.
It has to be noted that the legal liability of the two is different. If the truckers fail to have motor truck cargo insurance, they will be legally responsible for any damages except the ones that are triggered by act of God like tornado; by public enemy like wars; due to the fault of the shipper like the load cargo that is held improperly; and by public authority.
Dealing with Purchasing
When it comes to buying this insurance, it can be a little bit complicated, especially on how to find the adequate and appropriate coverage. Drivers will find that the policies can be different depending on the loads, the type of commodities, and the distance of where the materials will be transported to.
Besides, the limitations and exclusions of goods that can be transported are also different. When we talk about limitations, we refer to the maximum amount that the insurance company is going to pay out for the purchased policy.
There is also a sub-limitation. It is the smaller amount the insurance company is going to pay due to particular loss or damage when the policy has a higher limit.
Motor truck cargo insurance can be largely found in several insurance companies. Not that, buying this insurance is like getting regular auto insurance. When it comes to buying the policy, it has to be noted that all conditions have to be well understood.
Do not forget to compare rates between the companies to make sure the final decision is correct.
Perhaps, it can be recommended who do not really understand motor truck cargo insurance to buy this policy through an agent. The agents will help the truckers to make sure that they make a good decision.