What To Look For In Commercial Cargo Insurance

If you run a business that needs to distribute many items that you sell, then you want to be sure that you look into commercial cargo insurance. This is going to ensure that you have adequate coverage in the case that any accident were to happen. During the time that it takes for the truck to transport cargo and return back to the business location, anything could happen. Here's what to look for in a commercial cargo insurance policy to help protect you and your business:

  • Basic Coverage: First off, you want to understand that all commercial cargo insurance policies will at least come with the basic coverage. This coverage provides collision coverage and comprehensive coverage. Collision coverage covers the cost of other vehicle's damage involved in an accident that you had caused. Comprehensive coverage is what covers the damage done to your own vehicle. 
  • Specialized Coverage: Specialized coverage is important to look into when purchasing commercial cargo insurance.
    • Commercial Auto Liability: This insurance coverage covers bodily injuries and damage to other's property in the case that the driver has crashed onto someone's property. If your cargo vehicle drives past a great deal of private property, then this should definitely be considered. Otherwise, you will have to pay for property damage out of pocket, as well as damages to your cargo vehicle. 
    • Cargo Insurance: Cargo insurance is another important coverage option to consider, since it covers the loss or damage of the cargo that is being transported in your cargo vehicle. The cost of this insurance depends on the type and value of the cargo that your business ships out. 
  • Non-Trucking Coverage: Non-Trucking coverage covers accidents that are not related to the transportation of the cargo. This coverage includes: 
    • Bobtail Insurance: This insurance applies once the truck's load has been taken out and the vehicle is traveling without it. Bobtail insurance also applies when the truck is being used for personal use. 
    • Occupational Accident: Occupational accident insurance covers the operator of the vehicle in the case of accidental death or dismemberment. Many truck drivers will not operate a business cargo vehicle without this coverage included. 

Being sure that you are aware of what commercial cargo insurance includes, you can be sure that you choose the right coverage for your business. There are many different scenarios to keep in mind, which will help you choose which coverage is more important over others, depending on what type of cargo your business transports and where the vehicle will be spending most of its time on the road.