If you are new to the trucking industry, you may not know a whole lot about the ins and outs of cargo insurance. Liability insurance to protect the loads your trucks carry is not just a good idea; it’s also the law. Here is some very basic information about cargo insurance to help you make informed decisions.
It’s the Law
According to the U.S Code (49 USC 13906), motor carriers hauling cargo within territories under federal jurisdiction must retain cargo liability insurance with minimum limits for loss or damage of $5,000; there is also a $10,000 minimum for aggregate losses involving the vehicle’s cargo for losses or damage caused at any one place and/or time. If a trucking company is found to be in violation of this law by not carrying appropriate amounts of cargo insurance, it is subject to citations as well as substantial fines and penalties.
Common Carriers vs. Contract Carriers
Common carriers are trucking companies whose services are available to the general public; contract carriers only haul for a specific shipper under specified contractual terms. Only common carriers are subject to the above regulations by the Federal government; however, for their own protection contract carriers carry appropriate cargo insurance as well.
What Does it Cover?
The principle job of cargo insurance is to make sure that whatever you’re carrying in your truck makes it to its destination safely. Theft and loss are generally covered, as is damage. Depending on your needs, your policy can cover specific vehicles individually, or it can blanket your entire fleet without specificity.
The expert professionals at Hub Transportation can help you decide what kind of cargo insurance is right for your particular business, then use its extensive network of insurance connections to get you great coverage at the lowest possible price.