It sounds impressive and it seems that we are shielded to any type of claim related to cargo. But be careful as this doesn’t work like you’d expect. Most cargo insurance protects approved goods that are in transit, from the moment they leave the shipper`s warehouse until they reach the receiver`s warehouse. For this reason, we recommend to read your policy.
All policies have exclusions. Read in detail the products that you can load and especially those that aren’t covered in your policy, especially in the part called: Description of covered property. This could save you thousands of dollars, terrible headaches and especially prevent you from getting into serious problems that could mean the permanent closure of your business.
Insurance policies are usually quite extensive and many of us are only going to see the insurance agent, sign, grab our cargo of papers, including our certificate and we will continue working. But we recommend that you pay attention to the following points:
1) Description of covered property: This section will report what is covered and what is not covered. Many times, we don’t make sure that what we are lifting and carrying in our trailers is covered by our insurance. Be especially careful with the exclusion of electronics, which means that any device that needs to be connected or that uses batteries is not covered.
2) Insuring agreement: There are two types of insurance agreements, confirm which one you have:
a. Named Perils Policy: It only covers for losses caused by situations described in your policy. Some causes of loss could be vehicle rollover, crash, bridge collapse. It normally covers theft, but there may be certain exclusions or endorsements, such as the driver stealing the cargo, leaving the vehicle unattended or left unattended. In summary, if the cause of the loss isn’t described you won’t have coverage.
b. 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. If the cause of the loss isn’t on the exclusion list you will have coverage.
3) Exclusions: The most common are: - A driver stealing a cargo, theft caused by leaving the vehicle abandoned or unattended. We recommend that you have a yard safely and fenced. Leaving the truck on the street is considered an abandoned vehicle. Many say "here has never been theft" they trust and then regret when have to pay out of pocket for a claim.
4) Schedule Vehicles Policies: The use of a vehicle that isn’t enlisted in your policy is not covered under any circumstances.
5) Endorsements: Covers policy changes made by the insured in his policy with the approval of the insurance company.
There are excellent policies, look for a good insurance agent who knows the industry and knows how to answer all your questions.