Motor Truck Cargo Insurance

What is Motor Truck Cargo Insurance?

Motor truck cargo insurance is a type of insurance that covers the trucking company (who is the policyholder) against financial losses that it might be obligated to pay due to loss of or damage to cargo it is transporting. This insurance is purchased by the trucking company, not the cargo owner, and it may contain exclusions for certain commodities or types of cargo. Motor Truck cargo insurance pays for cargo losses only if the motor carrier (the trucker) is liable for the cargo loss.

Motor truck cargo insurance is typically required by law or regulation for trucking companies that transport goods for hire. It is also often required by contracts or agreements between the trucking company and its customers.

How does it differ from cargo insurance?

Motor truck cargo insurance protects the trucker against liability claims. As the cargo owner, you can't claim directly on the policy for losses that aren't the trucker's fault, and the trucker's liability is often limited by the contract or by law.

If you want your goods covered for their full value regardless of fault, you'll usually need separate cargo insurance. Check the trucker's coverage limits and exclusions before you ship high-value or fragile freight.

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