What is cargo liability coverage?

What is cargo liability coverage?

Motor truck cargo liability coverage is a type of insurance that protects motor carriers from the perils of the road. It protects both the owner of the goods as well as the insured party (or parties) while the cargo is being transported.

Who is responsible for cargo insurance?

Usually the party responsible for delivering the freight is responsible, whether they are the buyer or the seller. In many cases goods will be insured when they are delivered by truck, but only at a marginal per pound rate. It may be a good idea to purchase additional coverage.

Why do I need cargo insurance?

The bottom line is that cargo insurance is necessary to protect the cargo interest against inevitable losses that occur during the transportation of goods. A cargo insurance policy indemnifies the cargo interest in the event of loss or damage to cargo due to a peril insured against while at risk under the policy.

What insurance is required for MC number?

If you’re trying to get your Operating Authority (MC number), the FMCSA requires that you first get public liability insurance with coverages for both bodily injury and property damage.

What do you mean by cargo risk?

Cargo risk management is the identification, analysis and control of risk associated with cargo within transportation service, Logistics or supply chain network. The impact of a cargo loss in today’s competitive business environment extends far beyond the amount that may be recoverable through an insurance claim.

When do I need Hired Auto cargo coverage?

Hired Auto Cargo coverage extends cargo protection to loads for which you are responsible under a bill of lading. Here are some examples of situations in need of this endorsement to broaden a scheduled vehicle policy:

Do you have to have auto insurance for Hired Auto?

Hired auto requirements and restrictions. You must carry Liability insurance on your commercial auto policy to carry Hired Auto coverage, and the limits you select for each must match each other. Hired Auto Insurance coverages use limits to describe the maximum amount your insurance company will pay.

Which is an example of hired auto insurance?

Hired Auto coverage provides Liability insurance for vehicles you lease, hire, rent, or borrow to use in connection with your business. Hired auto coverage example You’ve taken on a special job that requires you to rent a commercial van from a local company.

Is there cargo insurance for a garbage truck?

Motor Truck Cargo insurance is not available on garbage trucks, limos, hearses, buses, passenger vans or ice cream trucks. The following cargo types are also excluded from coverage (other exclusions may apply):