How to Ensure Adequate Cargo Coverage in Your Commercial Trucking Insurance Policy

Protecting your cargo with appropriate insurance is as critical as safeguarding your vehicles and drivers. The right cargo coverage can help protect against potential financial losses and disruptions to your business.

Why Cargo Coverage is Essential

Cargo coverage is a specialized type of insurance designed to help protect the goods transported by your commercial trucks. Unlike many commercial auto insurance policies, which help cover the vehicle and your company’s liability for third-party damages, cargo coverage specifically addresses risks related to the cargo, including damage due to accidents, theft and other perils.

Without sufficient cargo coverage, you risk significant financial losses if something happens to the cargo during transit.

Key Factors to Consider for Adequate Cargo Coverage 

Start by evaluating the types of cargo you transport. Different types of freight come with various risks, including the following:

• High-value cargo like electronics or luxury goods require higher coverage limits due to their value.

• Perishable goods like foods and pharmaceuticals may need coverage for spoilage or temperature fluctuations.

• Hazardous materials like chemicals or other dangerous goods expose your company to additional risks that may require specialized coverage.

Your policy should have adequate limits to cover the full value of your cargo. Insuring your cargo for less than its actual value can leave you exposed to financial loss. Your agent can help set coverage limits to reflect the maximum value of goods you transport.

Depending on your company’s needs, your agent may recommend the following additional cargo coverage options:

• Contingent cargo insurance may help provide extra coverage if the primary cargo insurance is insufficient.

• Blanket coverage typically offers a higher limit that applies to all types of cargo, simplifying coverage for multiple goods.

• Temperature control coverage may be appropriate for goods that require specific conditions, such as refrigerated or frozen items.

Contact Us

Contact Insurance Solutions Center in Batesville, Mississippi, for more information about your cargo insurance options.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.