Motor Truck Cargo Insurance Simplified

Motor Truck Cargo Insurance offers cover for the actual load that a trucker is hauling and is usually only available to “for-hire” truckers who operate one of the following types of truck:

  • Dump Truck
  • Box Trucks
  • Cargo Vans
  • Tractors
  • Flatbeds

It is NOT usually available for:

  • Ice Cream Trucks
  • Buses
  • Garbage Trucks
  • Hearses
  • Passenger Vans

It is a good idea to check with your insurance company specifically whether the type of truck you drive is covered.

If it can be covered then a typical Motor Truck Cargo Insurance policy would cover you for such scenarios as:

  • Damage to the load caused by a collision, a fire or where the load came loose.
  • The load accidentally being dumped on the road and the costs associated with clearing it up (typically referred to as “Removal Expenses Cover” in the policy document).
  • Expenses that may have been incurred because a load failed to be delivered (typically referred to as “Earned Freight Cover” in the policy document).
  • Legal expenses because of the above.

It is becoming increasingly common for risk managers at freight companies to require their “for-hire” truckers to routinely carry this kind of cover.

In addition to the excluded vehicle types, there are also a number of types of cargo that are typically excluded from cover. These are as follows:

  • All live animal transportation.
  • Any material that is explosive in nature.
  • Anything radioactive.
  • All property that is owned by the person who is insured by the cover.
  • All types of shipping containers.
  • Pharmaceutical Products.
  • Alcohol.
  • Tobacco.
  • Transporting anything illegal like drugs for example.
  • Paper.
  • Jewelry.
  • Art and Paintings.
  • Money.
  • Anything where it is being stored for a period that is longer than 3 days (72 hours).
  • Any property that is not under a “Bill of Loading” (in other words the goods need to be specifically on the consignment list).
  • Any property while it is in the custody of another carrier.

Admittedly this seems like a long list. But in reality far more types of load are covered then are not covered.

This is an important type of cover to get if you haul as a “for-hire” driver because it protects you if something unexpected happens to your load. It is also often a basic requirement to work for many haulage companies, so remember to enquire, when you get a new job, exactly what cover they need you to have.

It is, however, worth bearing the above list in mind when seeking truck insurance of this type because most Motor Truck Cargo Insurance policies will include the above exclusions as standard.

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