There’s a lot that can happen on the roadways. Trucks can jack knife and have their cargo spilled all over the roads. Inclement weather can lead to multiple car and truck pileups that leave them stuck for days, allowing that cargo to spoil or become damaged. Fires can even occur when something goes wrong with the truck or trailer’s electronics systems, taking out the valuable items stored in the trailer.
So, what happens when these problems or others like them, damage the freight that your company has been trusted to transport from one place to another? This is where cargo insurance comes into play.
What is Cargo Insurance?
Since your company already has insurance on its vehicles, office space, warehouse, and more, the only thing left is your cargo. This cargo is important because that’s how your business makes its money: delivering and storing goods for other companies. The loss of this cargo can lead to a number of financial issues and even lawsuits, should your customers decide to sue your business to recoup any losses. Thankfully, cargo insurance is a solid solution to all of these problems and more. Cargo insurance covers the items that your company ships and delivers every day.
Components of Cargo Insurance
In general, cargo insurance is designed to provide coverage of various items that are shipped from one area to another every single day. Although there are some exceptions, just about any common type of cargo is included in the insurance plan.
There are two main components that you’ll need to choose the specifics for, depending on the amounts of cargo that your company moves around. They are:
- Insurance Deductible – You’re no doubt familiar with the concept of a deductible because it applies to other types of insurance as well. This is the amount that you’ll have to pay out of pocket when a claim is approved. Depending on your policy, your deductible could be either a flat fee or a percentage of the claim.
- Insurance Limits – How much coverage do you need? If something goes wrong with a shipment, how much will it cost to pay your customer for the damaged freight? Are there certain types of cargo worth a specific dollar amount that your business handles every day? Since the limits on your policy are a cap on how much your business will be reimbursed if your cargo is damaged, make sure that you have enough insurance in place to not leave you with crippling losses.
What Isn’t Covered By Cargo Insurance?
While cargo insurance is helpful in many cases, there are some things that it doesn’t cover. For example, items not listed on the bill of lading, live animals, certain types of jewelry and anything in an overseas shipping container may not be covered. There could be other items on the list as well, so check with your insurance company to ensure you’re fully protected.
Have Questions? Contact Charlotte Insurance
Want to learn more about cargo insurance? Are you unsure if it applies to your company or is something that you need? Contact Charlotte Insurance. Our agents can explore and explain all available options and put together the insurance coverage plan your business needs.