Motor truck cargo insurance is a policy that protects the motor truck carrier from any damage, destruction or other loss to the shippers’ property if he is legally liable according to the contract. The Motor Carrier Act of 1935 offers shield against the lost packages, stolen goods or broken contents while under carrier’s custody. The trucker’s liability is defined by the clauses specified by the bill of lading or a contract with the shipper or by published tariffs. Typically, the policy is purchased with the maximum load limit per vehicle as a lower policy can turn out to be highly risky in the event of a disaster. The motor truck cargo insurance coverage ranges from $10,000 to $100,000 though higher policies can be availed at the request of the motor truck carrier.
There are mainly two varieties of motor truck cargo insurance. The first kind of policy specifies the trucks that are to be covered under the insurance in the event of damage or destruction and while the second covers all the insured trucks without a list of specific trucks falling under the umbrella.
The policy can be tailored to meet the demands and specifications made by the truck carrier company. Some policies can be made to offer protection to the cargo that gets stored in the terminal or the warehouse of the carrier company when there is a delay in the delivery. Sometimes delay occurs when the delivery is made only on the consolidation with other shipments, which calls for the added protection during the period. A thorough and detailed requirement put forward to the insurance broker can assist in attaining a policy that meets the extra demands at no extra cost. Protecting the cargo against calamities is, therefore, vital for financial security.