Guide to Motor Truck Cargo Insurance

Trucks are a key component of the transport sector, but they come with their fair share of risks. Truck cargo liability coverage protects policyholders from loss incurred due to the damage or destruction of products while being transported by trucks. Here is further insight into what you should understand about motor truck cargo insurance.

Who Needs It?

Truck drivers that operate on a hire basis are often obligated by law to take out truck cargo insurance. This is mainly because most commodities that are worth transporting by truck are usually valuable; hence opting not to seek the policy is considered risky. Factors like extreme weather and fatigue in the case of long-haul truckers increase the potential of accidents happening. As explained by, the policy protects the truckers from having to directly pay the cargo owners in case their cargo is stolen or lost while in transit.

What Is Not Covered by It?

Truck cargo insurance covers most but not all types of cargo. Some of the types of freight not guaranteed by the policy include jewelry, live animals, expensive works of art, explosives, radioactive material, contrabands and property owned by the insured. It is also not available for certain types of vehicles, namely garbage trucks, ice cream trucks, and buses.

By knowing if you fall into the category of needing this policy, you may be able to take the necessary steps to acquire it.