March 27, 2021

How Much Cargo Insurance Do Truckers Need?

  • by Lucas Mohammed
  • 17 Days ago
  • Comments Off

A trucking company, like any other business, faces various risks. That why they require reliable insurance policies to secure their consignments. In most cases, they rely on commercial truck insurance to address all their issues.

Regardless of the number of trucks a company owns, an insurance policy can help owners safeguard their investment. However, there is no one fits all policy, and that’s why it’s important to understand core factors, such as pricing and risk coverage.

Understanding Where to Start

It may be challenging for a non-expert to accurately determine the level of cargo insurance your trucking company needs. That is because the value of the consignment you transport is not always constant. That’s why having a trucking insurance policy is an essential factor that should never be overlooked. It’s the only way to ensure that the insurance can compensate you if your cargo gets damaged on transit. You can also insure against calamities such as fire, crushes, and theft.

However, it is also wise to understand the type of cargo you will be transporting before deciding which policy to apply. If your company deals with heavy and hazardous products such as petroleum, you need a higher insurance package to secure your cargo.

Remember, insurance requirements may differ from one state to another. Research your region to understand the regulations.

Policy Options That You May Consider

Whether you are a company owner or a contact manager, you can secure your trucking business using one of the following policy options from your Insurance Agency.

  • Open cover insurance policy: The option compensates you for any risk apart from those identified as exceptions. It is ideal for subcontracted trucks.
  • Contingency policy: It is where an insurance agency compensates you if your client rejects products because they got damaged on transit.
  • Specific cargo policy: This is an option for trucking companies that only want to insure a particular consignment. Clients who buy certain products such as clothes in bulk prefer this type of insurance policy. However, it’s important to note that it cannot cover more than one cargo consignment at ago.

What Are Cargo Exclusions?

An insurance broker may identify particular products as exclusions, meaning that they do not count when it comes to compensation. Such includes the driver’s items, cash, documents, animals and pets, alcoholic drinks, and medicine, to mention a few.

While getting cargo insurance for your trucking business is critical, it is wise to understand the level of cover you need for your trucks and cargo. Remember getting the wrong policy o coverage might lead to loss of money if something happened and it’s considered to be beyond the scope of what’s covered. Contact a reputable institution such as Inspirion Insurance Solutions for professional advice.

Inspirion Insurance Solutions

https://www.iisnv.com

8965 S Eastern Ave Ste 260, Las Vegas, NV 89123

(702) 979-3299

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