Numerous risks exist in the transport of goods, many of which are neither predictable nor controllable. Shippers are legally required to carry liability insurance, but often it is not enough to entirely cover the loss of product during transport. At this time, regulations do not mandate drivers to carry cargo insurance, though this type of coverage provides important protections.
The Benefits of Coverage
Any time a driver gets behind the wheel of a loaded truck, he assumes responsibility for the freight he carries from one place to the next. There is a level of trust involved between shipper, driver, and recipient, but when something goes wrong, each individual along the chain of delivery bears some degree of financial obligation.
Without protection, the driver is personally on the hook for his liability in lost, damaged, or destroyed freight. Cargo insurance covers the insured while products are in his possession in the event of losses or damages due to:
- “Acts of God”
There is no one-size-fits-all policy. Policies are tailored to meet the insured’s needs, and the driver decides coverage limits and deductible levels. It is important to note, however, that there are exclusions. Knowing what these are ahead of time prevents unwelcome surprises down the road. Though cargo insurance is not a legal requirement, it does offer much-needed protections for drivers doing their part to ensure safe delivery.