Understanding Cargo Insurance, Semi-Truck Insurance, and Large Truck Insurance

On any normal day, you could be driving on the interstate highway, hauling a mass of packages for an important client, when suddenly, you take a turn too quickly and end up tipping over. Precious cargo pours everywhere, and some get run over by the traffic. To make things much worse, you have also been injured.

Trucking insurance is essential; even if your fleet only has a single truck. The FMCSA requires insurance and legal process agent documents before issuing the Operating Authority, an MC Number, which is required to operate as a For-Hire Trucking Company. Standard auto insurance policies do not include commercial truck insurance, cargo insurance, or semi-truck insurance. The level of insurance you require depends on the type of Operating Authority. 

What is Covered by Cargo Insurance?

Cargo insurance or haul insurance safeguards you from any financial loss that is incurred due to lost or damaged cargo. It pays you the amount you are insured for if an eligible incident happens to your freight. These covered events are typically cargo abandonment, vehicle collisions, or natural disasters. This coverage offers benefits that are unique from other types of insurance policies.

Cargo or haul insurance is especially important given the Carmack Amendment, which exposes carriers to the risk of being liable for the damage to the goods, regardless of how the damage was caused. The purpose of the Carmack Amendment is to relieve cargo owners from having to provide proof of negligence and to identify which carrier was negligent. The shipper is required to make sure that the goods were not damaged before being picked up by the carrier and that the damages can be quantified. Given that carrier is almost always entirely liable for damages, it is highly advised to be insured to cover these potential liabilities. The carrier may be exempt from damage claims under certain circumstances, Acts of God (ex. weather, political unrest, theft), or an inherent vice (a feature that makes the good inherently prone to damage, such as flammable). 

How Can You Benefit from Semi-Truck Insurance?

Semi-truck insurance offers liability coverage for the injuries and damages caused to other parties when the driver is at fault. It covers the risk of bodily injury to others and property damage to other vehicles involved in the accident. The main advantage of having semi-truck insurance is that you lower your financial burden even in the event of loss or damage. The small investment or premium you pay offers peace of mind as your fleet is on the ground running. Semi-truck insurance allows you to safeguard your cash flow from unexpected costs. A dedicated insurance provider will streamline the processing of your claims, so that you can continue operating your business with little to no interruptions in your service.

When Do You Need Large Truck Insurance?

If you operate larger trucks, large truck insurance can be beneficial even if it is not required by law. The freight is exposed to many risks as it moves through various routes. Further, there are external factors like traffic and weather conditions. The greater exposure to risk, the more likely the vehicle or cargo are to be damaged, stolen, or lost. 

Commercial trucking insurance protects fleet owners from some of the most expensive risks of operating their business. Some freight carriers are responsible for a minimum of hundreds of dollars per package or shipping unit, or the actual good’s value, whichever is less. Other carriers are liable on a per kilogram basis. Based on such figures, your business could lose a substantial amount of money without insurance coverage. As such, many fleet owners or owner-operators lose sleep over trying to find cheap trucking insurance. SWAN Insurance insures you so that you can sleep well at night. We provide our clients with relief by providing them with the insurance they need in high-risk industries. If you have questions about haul insurance, semi-truck insurance, or the right type of coverage for you, give us a call and one of our insurance specialists can give you a quote today.

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