Motor Truck Cargo insurance (Cargo) provides insurance on the freight or commodity hauled. It covers your clients liability for cargo that is lost or damaged due to causes such as fire, collision, or striking of a load. Common and contract truckers are liable for the cargo they transport.
When your client selects Motor Truck Cargo insurance, they have to select a limit for your coverage. This limit determines the maximum amount your insurance company will pay for damaged or destroyed cargo. Always keep in mind your insured should carry enough to cargo insurance to cover the loss of the load and any clean up that might be entailed from damaged cargo. Choosing a higher deductible is an easy way to lower the price of your clients insurance and to limit minor losses from effecting their loss ratio, but be sure they choose a deductible that they can afford to pay out of pocket at any time.
Your client needs this coverage if they haul cargo of any kind.
Contingent Cargo is a coverage designed for Freight Brokers to protect them in case the cargo coverage of one of their shippers cannot pay or refuses to pay a legitimate claim. That inability to pay is the trigger for coverage. All forms typically cover when the shipper’s policy was cancelled or non-renewed. For some carrier forms this is the only trigger the coverage responses to.
There are two general coverage forms: The Follow Form coverage which does exactly as it says and follows all the conditions, definitions, exclusions and warranties of the shipper.
Non-Follow Form coverage is by far the best as it can offer broader coverage than the primary coverage of the shipper.
Most do not pay for losses due to inadequate limits (Excess Cargo should be purchased) or pay when a commodity is excluded or limited under the shippers policy.
Bottom Line is you need to have a professional who knows Contingent to help you. Always ask about the loss triggers and any limitations or exclusions above all else.
What you can expect from our Cargo Market
- A Rated Markets
- Broad Coverage Forms
- Competitive Pricing
- Limits up to $1,000,000.
- Special Types:
- Debris Removal
- Earned Income
- Pollution Cleanup Options Available
- Scheduled and Reporting Policy Options
- All Type Commodities and Special Cargo & Target Commodities can be written.
- All Radius and All Size Risks
- Premium Financing Available
- Protects from an assigned Truckers cargo coverage not responding to a covered loss
- Available for Brokers and Truck operators with brokerage operations.
- Typical Limits are $100,000 or $250,000.
- Follow Form and Non-Follow Form
- Deductible Options