Sounds awesome, right? It looks like we're armored to any kind of cargo claim, but be careful; it's not really that way. Most cargo insurance protects approved goods that are in transit from the time they leave the shipper's warehouse until they reach the recipient’s warehouse.
We recommend that you carefully read your policy because all policies have exclusions. Check the products you can load and, especially, the ones you cannot. This could save you thousands of dollars and avoid being involved in very serious problems.
We know that the insurance policies are usually quite extensive and many of us just visit the insurance agent, sign, pick up our papers, including our certificate, and we are very happy. Don´t act like this. We recommend paying attention to the following 5 points:
- Description of covered property: This section will inform you about what the insurance covers and most importantly, what is not covered. Many times we carry loads in our trailers without being sure that what we are transporting is covered in our policy. Be especially careful with the exclusion of electronics, which means it does not cover any device that needs to be connected or use batteries.
- Insuring agreement: There are two types, check which one you have:
- Named Perils Policy: Only covers losses caused by situations described in your policy. Some causes could be vehicle rollover, collision, and collapse on a bridge. It usually covers theft, but there could be certain exclusions or endorsements, such as the driver stealing the load, abandoning the vehicle or leaving it unattended. In summary, if the cause of the loss is not described, you won´t have coverage.
- Special Cause of Loss: Also known as All Risk Policy. This coverage is much broader than the previous one, but it also has some exclusions. As long as the cause of the loss is not on the exclusion list you will be covered.
- Exclusions: The most common are: theft of the driver, and theft caused by leaving the vehicle abandoned or unattended. We recommend that you have a safe and fenced yard. Leaving the truck on the street is considered as abandoned vehicle. Many say: "there have never been robberies here" they get confident and then regret when they must pay the claim from their pockets.
- Schedule Vehicles Policies: The use of a vehicle that is not listed in your policy is not covered under any circumstances.
- Endorsements: Covers the changes that the insured makes in their policy with the approval of the insurer.
There are excellent policies. Find a good insurance agent who knows the industry and can answer all your questions.