Understanding Cargo Insurance for Commercial Trucking

Commercial trucking is a necessary business. Delivering goods of all types from shore to shore and everywhere in between, they are a large part of our nation’s economy. 

Of course, this means that there are millions of trucks on the road at any given time. Due to many potential circumstances that can arise, including an accident and theft, the Federal Motor Carrier Safety Administration (FMCSA) has set forth certain requirements when it comes to obtaining the protection of insurance coverage. 

This is why many in commercial trucking seek out cargo insurance. 

What is Cargo Insurance for Commercial Trucking?

Cargo insurance for commercial trucking is a type of coverage that protects what you are hauling, rather than the actual truck – or yourself. 

• Accidents. In an accident, for instance, goods or commodities are at risk of being damaged or destroyed. If they are dumped out during the accident, the cost of cleanup can be exorbitant, as well — even more so if what you are hauling is a hazardous material.
• Theft. If the cargo is stolen during a theft, it will need to be replaced. The cost of replacing this can be extensive.
• Natural disasters. Throw in the possibility of natural disasters, such as earthquakes, floods, and fires, and you take on an even greater risk.

Cargo insurance will help to reduce the financial loss, either entirely or in part, depending on the cost and amount of coverage. 

Types of Cargo Insurance for Commercial Trucks

It is important to understand that there is not one universal cargo insurance policy. Rather, different types cover different things. 

If you are hauling a load of perishable goods, you may need a policy that will protect your load in case something happens along the way or if the delivery is delayed. Hazardous materials will usually also require a special type of coverage due to the nature of them. 

Never assume that your cargo insurance will cover everything that you are carrying. Instead, always be diligent in your insurance purchase so that you may reduce your risk. 

Does Everyone Need Cargo Insurance? 

Not every commercial truck driver is going to need to invest in cargo insurance —- especially if you don’t haul anything. After all, there is no need to insure something you never carry. 

Even if you do haul goods and aren’t contractually obligated to have cargo insurance, you do not need to invest in it. 

A good business practice, however, is to assess your risks and take steps to minimize them. Just because a customer doesn’t require you to have cargo insurance does not mean they won’t come after you to cover their loss should something go wrong while hauling it. A situation like this can be catastrophic for your business. 

Be proactive and protect yourself where you can. This could mean investing in cargo insurance. 

Need Cargo Insurance for Your Commercial Truck?

If you need cargo insurance for your lease-on or owner-operator commercial truck, then 10-4 Financing, LLC can help. We have all of the coverage you will need to be protected no matter what you are hauling or where you are traveling. And, we can answer all the questions you have about the coverage, too. 

Contact us at (888) 908-7701.