Understanding Motor Truck Cargo Insurance Options

Covered Perils and Common Exclusions

Motor truck cargo insurance safeguards your transported goods against various risks. Core covered perils often include fire, explosion, theft, and damage from collisions or natural disasters like storms and floods. Understanding what's not covered is equally essential. Common exclusions are poor packaging, employee theft, regular wear and tear, and losses due to delays, which are not covered by standard policies.

Typical Insurance Limits

Insurance limits for motor truck cargo vary but typically range from $100,000 to $250,000. These limits can be tailored to fit the specific needs of your business, ensuring that your cargo is well-protected without overextending your budget.

Choosing Between $100K and $250K Options

When deciding between a $100,000 or $250,000 insurance limit, consider the value and frequency of your shipments. A $100K limit is ideal for smaller, lower-value loads, providing basic protection at a lower premium. In contrast, a $250K limit offers more substantial coverage for high-value or frequent shipments, acting as a robust safety net with higher premiums.

Reefer Breakdown Endorsements

For those transporting refrigerated goods, a reefer breakdown endorsement is indispensable. It covers losses due to refrigeration equipment failure—a scenario typically excluded from standard cargo insurance. This endorsement ensures that perishable goods remain protected against unexpected breakdowns.

Call to Action

Regularly reviewing your cargo limits and understanding the specific risks of your operations is crucial. Are you ready to optimize your cargo insurance? Contact us today to review your coverage limits and ensure you're protected against unforeseen losses.