In the trucking industry, there are a variety of insurance policies that you should have. Without cargo liability coverage, you could face financial ruin if something happens to your cargo. While truckers generally understand the need for insurance, many do not have enough coverage to handle an accident when it happens.

Here are some misconceptions that lead to truckers being underinsured.

Commercial Truckers Are not Responsible for the Freight

As the transporter, you are also responsible for the freight. If anything is damaged or lost in transport, you may have to pay damages. If you underinsure, damages could financially devastate you. You should establish how much responsibility is shared between you and the shipper before you assume the responsibility of the cargo. Your insurance policy needs to meet the possible demands of a claim.

All Commercial Truckers Have the Same Risks

Every trucker carries his or her risks. Your risks depend heavily on the type of cargo you carry, the length of your trips and more. The cost of insurance may vary widely between truckers.

Also, your insurance coverage may have different provisions than others. You can tailor your policies to your operations. For instance, if you have a terminal and warehouse that requires protection, there can be provisions and policies to cover said warehousing.