When transporting cargo for a business or client, it’s crucial to keep it safe. You may have cargo insurance in case of disaster, but does it cover you if someone steals your cargo?
This depends on the situation. In general, yes, cargo insurance does have the capability of covering theft. However, it likely won’t cover you if the theft occurs while the vehicle is unattended. This is especially true if you leave the vehicle unlocked. In this case, the insurance claim would likely reject the claim and you’d be held responsible for the stolen goods. This also depends on the type of policy you have, however. You can choose to purchase all risk coverage, which extends protection to cargo abandonment, employee dishonesty, infestation and damages due to inappropriate packing.
What Does Cargo Insurance Cover?
Cargo insurance protects you against loss or damage that occurs to the cargo due to a covered incident. Covered incidents of a basic policy can include:
- Limited water damage
- Heavy weather
- Equipment breakdown
- Running over/striking the cargo
Cargo insurance also includes liability for these incidents and may cover legal fees if the client whose products were damaged decides to sue. There are limits on the type of cargo that insurance will cover. Cargo insurance does not cover criminal acts or instances where the driver is under the influence of drugs or alcohol. If you employ truckers, be sure to carry out extensive background checks on all potential truckers to ensure that they are experienced and trustworthy behind the wheel.
Is Cargo Insurance Required in Texas?
Cargo insurance may not be required by the state of Texas, but it’s crucial to have for any trucking company or transportation business. Your business’ reputation is incredibly important and having cargo insurance can help reassure clients that they’re covered no matter what happens.
How Much is Cargo Insurance?
Typically, cargo insurance is purchased along with a trucking insurance policy. The cost of cargo insurance alone ranges between $35 and $150 a month depending on the policy, type of cargo and more. Limits for cargo insurance often run between $20,000 and $100,000 worth of coverage, though you may purchase higher limits such as $250,000 depending on expensive cargo, such as electronics. Trucking insurance can cost anywhere between $8,000-$12,500 a year for owner-operators. Trucking insurance can include general liability, trucking liability, non-trucking liability, physical damage and cargo insurance.
ALSO READ: How Your Drivers Can Decrease the Risk of Cargo Theft