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Truck Freight & Cargo Insurance

BROAD CARGO COVERAGE

INSURES FREIGHT + CARGO YOU HAUL

Cargo insurance, sometimes referred to as freight or inland marine insurance, provides financial protection for motor carriers that haul freight and commodities on behalf of their clients.

Cargo insurance provides coverage for damage to freight and cargo by fire and collision, as well as other perils you face while on the road, such as hitting, running over, or striking your load.

It activates when covered cargo is damaged or lost while you are transporting it under a bill of lading or shipping receipt. It also insures cargo when it is being loaded, transported, and unloaded, and while you’re at a terminal or dock waiting for the recipient to sign for it.

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WHY YOU NEED CARGO INSURANCE

A motor carrier is liable if the cargo they are handling is damaged, lost, or destroyed. Cargo coverage, sometimes referred to as truck cargo coverage or inland marine coverage, provides you financial protection to cover the cost of the cargo, cleanup, pollution removal, and more.

Many clients require for-hire truckers to carry Cargo coverage to insure their loads while you’re transporting for them.

navy semi truck loading cargo - cargo coverage

WHY YOU SHOULD CHOOSE GREAT WEST’S CARGO COVERAGE POLICY

We’ve found that more than any other type of trucking insurance, Cargo coverage varies widely among insurance carriers and is often notable for what is not covered.

At Great West, we provide Broad Form Cargo insurance — which means we cover many losses that other insurers exclude.

Our Cargo coverage includes payments for:

  • Unrecoverable freight charges after a loss
  • Loss-recovery expenses in addition to the limit
  • Clean-up and pollution-removal expenses up to $10,000 in addition to the limit

None of the following are excluded from our Cargo insurance:

  • Alcohol products
  • Cargo in transit for more than 72 hours
  • Consumer electronics
  • Marring, scratching, packing, and rough handling, unless shipper error
  • Wet loads
  • Mysterious disappearance or pilferage, including from an employee when the Infidelity or Dishonesty Extension is added
  • Involuntary parting with the cargo by fraud or trick
  • Refrigeration breakdown, failure to fuel, or maintenance of refrigeration equipment
  • Spoilage

Great West’s Cargo coverage does NOT warrant or mandate:

  • That cargo must be attended at all times
  • A coinsurance penalty for underinsurance
  • A locked vehicle warranty
  • An equipment maintenance warranty
  • A tarped load warranty
  • Reduced limits for certain commodities

GREAT WEST WORKS TO MINIMIZE YOUR CARGO LOSSES

Our unique claims-handling process allows us to help you minimize your loss because we make the recovery and salvaging of your cargo our priority. 

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GREAT WEST CONSOLIDATES YOUR DEDUCTIBLE

When you have an accident that damages your tractor, trailer, and cargo, you would typically have to pay three deductibles. At Great West, we provide a Single Deductible endorsement at no cost to you. That means one Physical Damage deductible applies to a single-unit loss involving covered cargo, a tractor, and a trailer. Instead of a deductible applying to each of these, only the highest single deductible of the three applies when the loss occurs away from your premises. This can save you substantial out-of-pocket costs.

PROTECT YOUR TRUCKING BUSINESS

GET CARGO INSURANCE FROM A COMPANY THAT UNDERSTANDS TRUCKING. 

CUSTOMIZE COVERAGE TO YOUR OPERATIONS

CARGO COVERAGE OPTIONS

Talk to your Great West agent today about ways to customize your Cargo coverage to reflect your trucking business operations. Here are some of our optional coverages to consider.

HIRED AUTO CARGO COVERAGE

This coverage extends your Cargo protection to loads for which you are responsible under a bill of lading. Examples of situations that would need this type of coverage to broaden your truck's Cargo policy:

  • You borrow or rent an additional unit
  • You ask another truck professional who has limited, if any, Cargo insurance to haul a portion of your goods
  • You allow another motor carrier to “trip lease” to haul freight under your authority

INFIDELITY/DISHONESTY COVERAGE

This coverage extends the truck Cargo coverage to protect you from losses due to the dishonesty of an employee or an owner-operator driver while the property is in/on a truck or trailer.

Your questions about trucking

Frequently asked questions

Is cargo insurance mandatory for trucking companies or is it optional?
Cargo insurance is not legally mandatory for trucking companies but is often essential for financial protection. It covers damage to freight and cargo of others due to various perils during transport. Although not required by law, many shippers or clients require truckers to carry cargo coverage to insure their loads.
What types of cargo are typically covered by cargo insurance for trucks?
Cargo insurance for trucks typically covers a wide range of cargo types. This includes general freight, commodities, and specialized goods. It's designed to protect against damage to the cargo caused by fire, collision, and other common perils encountered during transport.
Are there limitations or exclusions in cargo insurance policies for commercial trucks?
Yes, cargo insurance policies for commercial trucks usually have specific limitations and exclusions. These can include exclusions for certain types of cargo, such as hazardous materials or high-value items such as jewelry. Other common exclusions might involve losses due to improper packing or inherent vice of the cargo. It's important to review the policy details for precise information on limitations and exclusions.
Are there specific security or safety measures required to maintain cargo insurance coverage during transit?

Cargo insurance policies may require specific security and safety measures to maintain coverage during transit. These measures typically include proper securing of the cargo, adherence to safety protocols, and compliance with transportation regulations. Specific requirements can vary depending on the type of cargo and the insurer's guidelines.

Is there coverage available for temporary storage or warehousing of cargo during transit delays?
Cargo insurance policies may offer coverage for temporary storage or warehousing of cargo during transit delays, often under certain conditions. This coverage is designed to protect cargo when it's held at an interim location due to unforeseen circumstances, such as transportation delays or logistical issues. However, the extent and terms of such coverage can vary based on the specific policy.

This summary is intended for informational purposes only and does not replace or modify the definitions or information contained in any insurance policy or declaration page, which controls all coverage determinations. Terms and conditions may vary by state, and exclusions may apply.

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