Truck Insurance can save you from carrier mishaps

Almost all companies are going for Cargo Insurance to protect their cargo against physical damage such as fire, natural disasters, fire, inclement weather, etc, however truckers need to be sure they remain free of certain steering to ensure smooth policy transactions.

Since Shippers do not have easy admittance to the insurance policies of carriers and freight forwarders (which are carriers under U.S. law), they must still try to get this information, regardless of the difficulty. Insurance carriers usually furnish shippers with "certificates of insurance" as proof of coverage, but these documents have a disclaimer of liability that kicks in when the issuer neglects to inform the certificate holder that the truck insurance coverage has been cancelled or amended. Even worse, these certificates do not outline the exclusions in the policy, placing shippers in the dark about how much coverage carriers have acquired for their products.

The three main and common exclusions related to cargo insurance and have been a big issue for shippers is;
One is "theft from an unattended vehicle, unless parked overnight in a public garage or locked private garage, and at all times, unless the loss is the direct result of visible, forcible entry." Also frequently excluded is loss from a vehicle that is not listed in a "named vehicle" policy. And third, loss from delivering the product "to someone who obtains it by trick, false pretense, or other fraudulent schemes" is commonly not covered. Apart from these, motor cargo insurance exclude “employee infidelity” where in the cargo is lost due to employee negligence o infidelity, hence separate fidelity bond coverage is a must

Also, Shippers should be aware of the difference between "insurance coverage" and "carrier liability." For instance, if the carrier indicates only a $100,000 liability limit in its tariff, the fact that it has a $1 million cargo policy is meaningless, and it's the shipper's responsibility to get a hold of a copy of carriers' tariffs.