Cargo liability insurance is created to protect your business reputation and assets. It also protects your relationships with your customers because everyone knows accidents happen. Being able to cover any loss or damages is critical in these unfortunate situations. Knowing what cargo liability insurance options you need for your trucking contracts depends on what type of carrier you are and what limits you need to have in place.
Cargo Liability Insurance for Common Carriers
If you are a common carrier, you know full well what type of accidents can happen when you are transporting from point A to point B. Because you are liable personally for all goods you ship, the insurance options you choose need to assure that all goods are fully covered during the transport. You will find that many times you have to include additional verbiage to include acts of God, inherent vice, public authority, and fault of shipper to also be covered.
Cargo Liability Insurance for Contract Carriers
Contract carriers work under a different set of circumstances than common carriers do. Since they are transporting goods for a specific shipper, the insurance options they need will depend on what the contract specifies. These specifications can be negotiated to include any number of requirements in regard to cargo liability insurance. Many times the results of these negotiations will demand that you are responsible for any sort of liability. The contract also spells out when you are responsible for the shipment. This is normally from the point of pick up until the point of drop off. These items will all directly affect the cost of transport. If you need additional insurance to comply with the contract, charging accordingly is standard.
Cargo Liability Insurance for General and Specific Shippers
Since the laws have changed, you are able to work as both a common carrier and a contract carrier. If this is the case, you want cargo liability insurance that will give blanket coverage for whatever type of transporting you undertake. A transportation management consulting firm will be able to advise you on what the best options are for you and your business under these circumstances.
Whether your business strictly works as a common carrier, contract carrier, or both, you will want to make sure you have the cargo liability insurance that will fully protect your business in case of any sort of accident that could happen during transport. Also, since many companies will review the insurance ratings your transportation company has, it is important to choose the best options to keep your edge over your competitors.