How Cargo Insurance Differs From Carrier Liability

The law requires that all truck owners hauling goods for another party have carrier liability insurance. While this type of policy does cover losses, it often pays less than the actual value of the goods. To further protect their shipments, many people also invest in motor truck cargo insurance. Here is an explanation of how these two types of coverage differ.

Carrier Liability

Carrier liability insurance covers goods that a truck carries in case the driver damages or loses them, or causes a delay in their delivery. However, the trucking company may not be liable at all if the shipment was not packaged correctly. Damages due to the following events are also not covered:

  • Tornadoes
  • Hurricanes
  • Acts of war or terrorism
  • Hail

Cargo Insurance

Cargo insurance is optional coverage to protect your shipment above and beyond the hauler’s basic liability insurance. The rate depends upon what you are shipping and how much coverage you desire. Unusual trucks such as limousines, hearses, food trucks, and sanitation trucks are not covered, and exceptions also exist for certain types of cargo.

Cargo insurance is optional, but is usually a good idea. It gives you peace of mind by ensuring that you will not lose a large amount of money if something unexpected happens to your shipment.