As an independent owner-operator, there are several things you need to keep track of to keep your trucking operation running smoothly. One of those items is trucking insurance. Do you have the right coverage for your trucking business?
In this article, we’ll explore cargo coverage and discuss when you need this particular type of coverage.
Cargo coverage is insurance for the load that is in the trailer, on the trailer, or strapped down to the trailer. It is not coverage for the actual trailer. Typically, if you have cargo coverage and are hauling a tractor on your trailer, the tractor is covered but the trailer is not.
Cargo coverage can protect your business in the event of theft of cargo or damage to cargo due to an accident. Theft is a major concern for certain types of cargo, such as computers, jewelry, and other high end items.
Is Cargo Coverage Required?
Whether cargo coverage is required depends on the type of operation. If you are a contractor with a 1099, you’re usually required to have your own coverage. But, if you are permanently attached or leased onto another carrier, whenever you’re under that contract you’ll most likely be covered by that company’s cargo coverage.
Your insurance agent should help you understand what type of coverage you are required to have for your trucking business.
Monoline Cargo Coverage
In some cases, owner-operators may learn that certain commodities, such as seafood, batteries, or electronics, are excluded by the company’s standard cargo form. In those cases, monoline cargo coverage can be a good option. This provides the driver with the flexibility to get everything covered under the same cargo coverage policy without needing to change the main trucking insurance policy.
Typically, cargo coverage falls between $100,000 to $250,000, since items on the trailer are calculated at their wholesale value. The cost for this type of coverage varies and depends on several factors, like the amount of power units on the policy and what is being hauled.
Why Kincaid Insurance?
Here at Kincaid Insurance, we’ve been writing trucking policies for more than twenty years. Our independent insurance agents understand the trucking industry as well as the unique challenges you face. Need access to your cargo coverage certificate at a moment’s notice? You can log into the system 24 hours a day, 7 days a week to print your certificate.
You’ll find our headquarters in Rockport, Indiana. We write trucking policies in Indiana, Kentucky, Ohio, Tennessee, and Illinois. Contact us today for a no-obligation free quote by calling us toll free at 1-877-888-5506.Request a Free Quote