Tag: Cargo and Liability Insurance

Limit Your Liability When Transporting Cargo

Western Truck Insurance

When moving goods, whether within your state or across the country, you face significant risks, particularly concerning the cargo you transport. Cargo damage, theft, or loss during transit can result in costly claims against your trucking company. 

According to Overhaul Risk Advisory Services, in 2023, there were 1,183 reports of cargo thefts, each averaging a loss of $586,917, for a total of $694,327,811 in stolen goods. The average loss per theft in 2023 represents a 67% increase over the average of $351,556 in 2022, with expectations that the cost per loss will rise again this year. 

Most thefts are by organized professionals with electronics the most stolen item. 

Following are several strategies to employ to mitigate the risk of cargo theft:

  • Use contractual agreements to limit liability: You can use bill of lading agreements and other contracts to limit your liability for cargo. A bill of lading is a legal document between the shipper and the carrier that outlines the shipment details. It can include terms that limit the trucker’s liability for certain kinds of damage or set a maximum dollar amount for any loss. In addition, work with your shippers to negotiate terms that limit your responsibility for specific circumstances or types of cargo, especially high-value goods.
  • Purchase insurance protection: Cargo insurance protects you from your responsibility as the transporter in the event of damaged or lost freight. The policy is purchased with a maximum load limit per vehicle. Under-insuring the load can prove catastrophic to you in the event of a claim. Make sure you understand the concept of co-insurance.
  • Implement proper handling and documentation procedures: Employ best practices in the handling and documentation of cargo. Ensure all drivers follow industry standards for securing and transporting goods, such as using proper tie-downs, pallets, and protective packaging. Failure to take these steps can lead to negligence claims, making it difficult for truckers to limit liability. Also, document the condition of the cargo before and after transport. Taking photographs and obtaining written acknowledgments from the shipper can be evidence if a dispute arises.
  • Communicate and collaborate with your shippers: Maintain open lines of communication with shippers, clearly outlining expectations, discussing potential risks, and agreeing on protective measures upfront. This will help reduce the chances of disputes over damaged or lost cargo. Immediately notify the shipper if issues arise during transport, such as delays, accidents, or adverse conditions. By communicating immediately, you further demonstrate you are acting in good faith and following proper protocols.

About Western Truck Insurance Services

Western Truck Insurance Services is an insurance brokerage specializing in commercial truck insurance. We know this stuff and want to make sure you do, too. Our clients appreciate our dedication to finding competitive rates and offering unparalleled service beyond excellent insurance options. They also value how our state-of-the-art automation provides lightning-fast Truck insurance quotes, customer service, insurance certificates, and coverage changes. Contact us today at (800) 937-8785 to learn more.

When Do You Need Cargo Insurance?

Bob Holtzman

Cargo ships and fleet vehicles have enough to worry about when it comes to logistics, but having to prepare for the unexpected is another layer of stress that needs to be kept at bay. Your goods need insurance, just like someone needs health insurance, so understanding the benefits of this coverage is important when transporting actual precious cargo.

Investing in cargo and liability insurance will provide a layer of protection and peace of mind when behind the wheel. This kind of insurance is needed to protect what’s being hauled and shipped from things like theft, damage and collisions. Not having insurance in place will put the cost of loss and damage on your company, adding up a huge unnecessary bill and eating away at your finances.

Here’s are some examples of why and when cargo insurance comes in handy:

Reduce Financial Loss

At the end of the day, the bottom line is an important measure for any transportation company. If you’re an exporter who hadn’t been paid yet when it comes to the goods at the time of shipment, or an importer who has paid for all the parts without receiving them, there’s a built-in risk of taking a financial hit if said goods are lost or damaged.

Contractual Requirement

A sales contract may obligate you to provide cargo insurance to protect interest of the buyer or their bank’s interest. Failing to do so cannot only set you up for major financial liability when it comes to lost or damaged goods, but non-compliance with your contract terms in mind. Overall, this can ultimately lead to loss of sales and legal issues that can break a company’s bank.

Coverage for Limited Carrier Liability

Carriers aren’t responsible for common causes of loss that happen while in transit (i.e. general average, natural disasters), by law. Even if a company is liable, carriers’ liability in the event of a loss is limited. In most cases, you will only recover pennies on the dollar from the carrier.

Having This Insurance Gives You More Control

One thing you need to have is some sort of control on your side, on your terms, so you are not taken advantage of, or just for the simple thing of making sure everything is above board. Relying on buyer’s or seller’s insurance may be an option, but you have to be happy with the fact that the insurance has been purchased and that the insuring terms, valuation, and limits provided by all parties are satisfactory to your needs.

About Western Truck Insurance Services

Western Truck Insurance Services is a commercial truck insurance agency with roots dating back to 1954. We have evolved into a highly respected, professionally managed, truck and \ transportation insurance brokerage. The hallmark of our organization is our desire to provide unparalleled service. We go way beyond what you expect to receive from an insurance brokerage. Equipped with state of the art automation, Western Truck Insurance can provide you with lightning fast truck insurance quotes, customer service, Insurance certificates and coverage changes.