Operating freight transport businesses carries its own set of risks. Businesses may be held liable if something happens to the freight they carry. That responsibility can be quite large, considering the substantial value of many trucks' loads. For truck operators in Massachusetts, motor truck cargo insurance can provide crucial financial protection.
Motor truck cargo insurance is a specific type of liability insurance for freight. If the freight gets damaged or lost during transit, this coverage may provide compensation for the loss.
Any Massachusetts business involved in freight transportation may want motor truck cargo coverage. When commercial auto coverage doesn't adequately protect a load, motor truck cargo likely will.
Policies are readily available for most types of equipment that are used to transport large and/or valuable loads of goods. A policy might cover freight in tractor-trailers, straight trucks, dump trucks, cement mixers, dually pickups, cargo vans and other equipment.
Additionally, it's worth noting that risk managers are increasingly insisting that truckers and freight companies carry insurance for the cargo they transport. Without coverage, freight transportation companies could find that certain contracts are unavailable to them.
Motor truck cargo policies typically cover scenarios where cargo could be damaged or lost. The specific terms of the policy dictate the coverage, but common protections often include:
An insurance agent with expertise in motor truck cargo policies can assist businesses in understanding the specific incidents covered by a policy.
When a freight transportation company has a claim, motor truck cargo could help with multiple associated costs. These may include:
The specific costs covered by a policy are determined by the terms, conditions, and exclusions of that policy.
Whether motor truck cargo policies extend their protections to when parked depends on the specifics of the policy and the parking context.
Generally, policies continue to cover the load when drivers park en route to their destination. For example, coverage while at fuel stations, at rest areas, or for overnight stays is included in the vast majority of policies.
Coverage during loading or unloading is less uniform, and varies from policy to policy. Some policies might not cover loads during this period. Others may cover cargo at loading/unloading docks for a specified duration, perhaps up to 48 or 72 hours.
An insurance agent who's knowledgeable in motor truck cargo can help freight transporters find a policy that provides coverage for when they need it.
Motor truck cargo policies are able to cover a wide variety of cargo types, usually including raw materials, specialty parts, equipment, consumer goods and more.
Securing coverage for certain types of cargo, like art, collectibles, live animals, weapons, radioactive material, or other high-value items, may require working with a specialized insurance agent. Coverage is still probably available, though.
The premiums for these policies primarily depend on the load's value, the perceived risk of loss, the distance traveled, among other factors. As premiums are calculated based on several variables, they vary widely.
An independent insurance agent can help freight transporters compare quotes from several insurance companies, to find out how much insuring their loads will be.
If you need help insuring freight loads and are based in Massachusetts, reach out to the independent insurance agents at Roger Keith & Sons Insurance. Our agents are experts in commercial vehicle insurance coverages, including motor truck cargo insurance, and will make sure you find a policy that keeps your freight protected well.