What Is Cargo Insurance?

Cargo Insurance

Companies that transport cargo are responsible for ensuring that it reaches its destination undamaged. Any type of accident or mechanical malfunction could end up in a transport vehicle damaging or losing the entirety of its cargo. In this type of event, cargo insurance offers indispensable financial protection.

Do All Carriers Need Cargo Insurance?

Failing to have adequate cargo insurance coverage can result in costly liability to a shipper. Even if a company is transporting its own goods, it should still insure them. Not only will it be faced with a considerable internal loss, but it may also be in breach of contract to whomever the goods were being delivered. For these reasons, it’s important that all motor carriers obtain cargo insurance.

How Affordable Is Cargo Insurance?

The cost of a policy will depend heavily on the value of the cargo, the number of vehicles transporting it, and the distance that it is being transported. Working with an insurance provider that is experienced in serving clients in the trucking industry will give you access to the most competitively priced carriers.

What Coverage Options Are Available?

Cargo insurance companies offer policies that are based on a scheduled vehicle basis or according to your total revenue. They can also provide coverage for goods while they are being stored in a warehouse.


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