The Motor Truck Cargo insurance
Coverage
When transporting goods and commodities, the transporter of the freight
assumes the responsibility of the cargo. It is important that the amount
of that responsibility is clearly defined and understood by all the parties
of the transport agreement before the shipment commences. This is usually
done through:
• Agreement
• Bill of lading disclosure
• Or by published tariffs
In most cases, this part of the details is overlooked by the parties.
The Motor Truck Cargo coverage offers protection for the freight cargo
incase the transporter is involved in an accident that damages the goods
or they are lost.
Usually the policy is purchased based on a minimum load per vehicle.
One thing you need to understand is that Underinsuring the load can turn
to be very detrimental when the damage or loss occurs and a claim is placed.
It is therefore important to understand the concept of coinsurance coverage.
This is an insurance policy, which requires a great deal of thinking
and evaluation before purchasing it. It can avert the costs that are attached
to claims of damaged or loss freight goods.
There is also need to frequently evaluate the nature of freight operations
to ensure that the insurance meets to the freight demands. This coverage
can be tailored to align to your freight operations and exposure.
At times, some exclusions and guarantee of compliance by you may lead
to a situation where there is no coverage. A reputable insurance broker
will gather more information from you in order to make the right decision
regarding this coverage.
In addition, the Motor Truck Cargo insurance coverage may also have some
provisions, which allow you to insure the freight cargo when it is in
your terminal or storage warehouse. This kind of exposure occurs if the
cargo is not able to be delivered the same day or alternatively it is
consolidated in other freight shipments.
This coverage will exist as long as there is no separate amount payment
that is made for the warehousing and storage.
Another insurance that is similar to the Motor Truck Cargo
coverage is the Warehouseman’s legal Liability coverage. This
type of insurance covers the freight cargo that you charge for storage.
In this case, you
need to use a warehouse receipt that is similar to a bill of
lading, for the cargo storage. The receipt should specify the terms
of the storage
contract.
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