The transport and logistics industry faces several risks and exposures, some of which are inherent to the nature of automotive travel. However, for those responsible for transporting goods across roadways, there is an increased risk that the contents of the shipment might become damaged during transport. To ensure that a driver or contracting company is not financially responsible for the replacement or reimbursement of damaged goods, the group at American Team Managers recommends carrying a motor truck cargo policy.
Areas of Application
The coverage is maintained on a legal liability basis and works with the risks of physical damage or direct loss to the cargo being carried by the policyholder. While limits may vary across customers or commodities, the cargo legal liability $25 000 threshold is common as a base policy. There are general areas of coverage through these policies, such as losses due to fire, theft, collision, equipment failure, or water damage. Refrigeration breakdown and spoiled goods is also a common coverage with this type of policy. Blanket limits can assist with situations needing:
- Debris cleanup
- Cargo reloading
- Traffic control
- Security services
Depending on the nature of the cargo and the risks posed during transport, some companies may want to consider additional endorsements with their policy. The additional coverage could replace lost wages, pay for first responder charges, or cover lost cargo reward offers.