Why Cargo Insurance Can Be Just As Important as Liability Coverage

Cargo can be exposed to a wide range of hazards during transit. From collisions and weather events to theft and handling errors, the journey from origin to destination is filled with variables.

Commercial trucking liability coverage typically does not cover the cargo. Without cargo insurance, the financial burden of replacing or repairing damaged goods can be devastating. Depending on the type and value of the cargo, this could mean significant out-of-pocket losses.

Cargo insurance can be tailored to the specific needs of the business, including the types of goods transported and the routes traveled. It can provide coverage whether the cargo is in a truck, on a ship or in a warehouse awaiting delivery.

Cargo insurance can also help with expenses related to debris removal, freight charges and other costs that may arise after a loss. These additional coverages can be critical in helping a business recover quickly and continue operations with minimal disruption.

Is Cargo Insurance Required?

Contracts with shippers or brokers often require specific cargo coverage limits. Failing to meet these requirements can lead to lost business opportunities or disputes in the event of a claim.

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Purchasing cargo insurance is a strategic decision that reflects a broader understanding of risk. Businesses that transport goods, whether occasionally or daily, benefit from tailored coverage that includes cargo insurance.

If you’re unsure whether your current policy includes cargo coverage or if it meets your operational needs, now is a good time to review it. Contact Apple Insurance Agency to help clarify what’s included with your current coverage and what might be missing.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.