Motor Truck Cargo insurance is needed by For-hire truckers to properly cover the commodities they are hauling. It is generally required by the party who owns the product being transported. This ensures that if their goods are damaged or stolen while in transit, their assets will be covered.
Depending on the cargo that is in transport by your big rig, you may need specific endorsements. For example, if you transport refrigerated goods, you will need to make sure you have “reefer breakdown” coverage. This might cover a $50,000 load of ice cream when the reefer unit breaks down in the Mohave Desert. Of any line of 18-wheeler insurance, cargo insurance is the one you need to understand and pay attention to the most. You usually get what you pay for, and some carriers will make a long list of exclusions that specifically exclude coverage for certain events.
The two most popular cargo insurance forms are called broad form cargo insurance and named peril cargo insurance. Broad form covers everything except a list of exclusions, and named peril coverage will only cover the list of scenarios (perils) listed on the policy. No matter what type of commercial vehicle you are driving, if you are hauling goods on a For-hire basis, you need motor truck cargo insurance to make sure you and your client’s goods are covered. The limit you need is determined by the value of the goods in transport.