Definition of Motor Truck Cargo Coverage

Motor truck cargo coverage insurance is protection carried by truckers while transporting their loads. In the transportation industry, the trucker is deemed responsible for cargo as soon as it enters his possession. The insurance provides coverage in the event the freight is damaged or lost while in transit.

Purpose

1. The purpose of motor truck cargo insurance coverage is to protect truck drivers from liability for transported cargo that belongs to others. Coverage is available to common carriers who are available for hire by the general public, and contract carriers, who haul cargo under terms of a contract that is engaged with a specific entity.

Liability

2. Without this protection, a common carrier would be liable for any damages to the cargo being hauled except for incidents involving an act of God, such as a tornado or hurricane; public enemy, such as an act of war; fault of the shipper, such as improper loading of the truck; inherent vice, including damages from extreme weather conditions or product spoilage; or public authority, such as when police confiscate the cargo believed to be suspicious. With a contact carrier, conditions of liability are specified in the contract.

Documentation

3. In order to file a claim, the trucker must have a copy of the bill of lading, which is a document that lists all of the items that make up the cargo as well as its destination and dollar value. With a contract carrier, this information should be listed in the actual terms of the contract.

Coverage Period

4. Coverage begins when the trucker takes possession of the cargo, and ends when delivery is completed. In some cases, the bill of lading specifies a brief period for which the carrier is still liable for the cargo after delivery to allow time for the delivery to be picked up, if necessary. This normally does not exceed 72 hours.

Differences

5. Coverages can vary depending on the insurance company. Policies may carry high deductibles or co-payments which could mean that the carrier could pay a significant portion of a claim out of pocket. Premiums can also vary depending on the commodity that is being hauled. Coverage can be scheduled--which provides specific coverage for each truck--or composite, which encompasss an entire fleet.