Motor Truck Cargo Insurance

From Liability to Cargo, we keep you covered

Trucking is a highly regulated industry, and insurance is one of the most important things that a new trucking company will need to purchase before starting their business operations. Simplex Group is staffed with trucking insurance experts who are committed to finding you the best deal and coverage possible. We understand the struggles of small trucking companies and want to make sure your trucking company succeeds. We know that finding the right insurance policy is a crucial part of your success.

What Does Motor Truck Cargo Insurance Cover?

As the name suggests, motor truck cargo insurance covers property while it is transported from one location to another. It covers the costs of the client’s property during the time it is in your possession. 

Motor truck cargo insurance falls into the category of “inland marine insurance.” When a property is temporarily not associated with a particular location, regular insurance will not cover it. You need to have a policy that is designed for the in-transit property.  Motor truck cargo insurance is used when people are moving from one home to another, when commercial products are being transported, and when contractors are using equipment.

The Federal Motor Carriers Safety Administration (FMCSA) mandates that moving companies transporting household goods carry motor truck cargo insurance. Even if the FMCSA does not require you to carry this type of insurance, your clients expect you to because they entrust you with their cargo. 

When you create a contract for a new client, it will clearly state the amount of cargo insurance for which you are covered.

Cargo Truck

How Much Does Cargo Insurance Cost?

The cost of this type of insurance will depend upon the product that you are transporting. It will also be determined by the amount of the product you are carrying, how far you are going, and the number of days it takes to get from one place to another.

If you are carrying household goods, the FMCSA requires that you carry a minimum of $5,000 for each vehicle and $10,000 for each occurrence. The amount of insurance may go up depending on the value of the household goods because all of the furniture in a person’s house may have a value greater than $10,000. Hence, you may want to have extended coverage.

Generally speaking, it will cost more to insure food products in a refrigerated truck than dry food products of the same value. More things can go wrong with a refrigerated truck, and food products might be rendered inedible if the refrigeration fails.

What Kind of Damage Is Covered?

A product has a better chance of being damaged when it is in transit than when it is stationary. If one of your drivers is in an accident, the product could spill onto the road or it could get damaged. Fire damage can also occur as a result of an accident.

 If a truck lands in water after an accident or if property being transported is improperly secured during a rainstorm, water damage may occur. Windstorms are common in the desert, and if your product is not properly covered, it could get damaged by dirt and dust.

Truck piracy is on the rise, and people have been known to carjack truck drivers on the road and steal their rig and all the products in it. In other cases, drivers will steal products from their trucks and sell them via organized crime. 

Although modern-day trucks have some advanced security systems, thieves occasionally steal products from them. Cargo insurance will cover any of the products that your drivers may carry.

Because it is still technically in transit, cargo should be covered when you warehouse it during transportation. We can make sure stored products are covered for as long as 72 hours if you have to store them while you are on the road.

There has been an increase in rioting in major cities over the last few years, and buildings are not the only thing that gets damaged. In some cases, rioters overturn trucks or even damage the products that are inside. We can ensure that your policy covers your products in case of a riot.  

Vandalism is also on the rise in this country, and is often politically motivated. Although no one has anything to gain from defacing property, protesters will do it to make a political point. However noble their motivations might be, that vandalism is illegal and costs a lot of money to repair. Your client cannot afford to lose their products.

How We Can Help

Simplex Group wants to see your company thrive and be successful. We know you cannot do this without a good motor truck cargo insurance policy. We will do everything in our power to ensure the policy is fair to you. We know how important it is to keep a steady cashflow when starting a trucking company, and we never want you to pay a larger deductible than you have to.

Simplex Group can assist you with finding the right motor truck cargo insurance for your company. We know what is legally required by the FMCSA, and we have helped dozens of truck start-up companies in the past. We know which types of coverage will save you the most money while offering you full coverage. We will also prevent you from getting insurance coverage that would be a waste of money.

In addition to taking care of all the different kinds of insurance you will need, Simplex Group can help you set up your business. We can assist you with hiring and screening drivers and Department of Transportation compliance. 

We will make sure your new entrant audit goes smoothly. When you partner with us, all of your records will be up to date. We will make sure that your drivers are not going over their hours and that your records of inspections and repairs are current. We consider your success our success at Simplex Group.