As a transporter of freight and commodities you assume the responsibility for the cargo you have taken charge of. The actual amount, in dollars, of that responsibility should be clearly established by all parties involved and must be understood by the shipper and transporter before the shipment is in transit. This is generally done with a contract, by a bill of lading disclosure, or published tariffs. If not, where the responsibility lies in the event that the freight winds up damaged, lost or stolen could come into question.
By purchasing Texas Cargo Insurance you can now protect yourself, as the transporter, for any responsibility you may have in the event of damaged or lost freight. This policy is purchased with a maximum load limit per vehicle. Having less than the required amount of coverage for any freight you take possession of can prove disastrous to you in the event of a claim being filed.
Some policies may contain exclusions
A motor truck cargo policy can be tailored to meet your operations and most exposures you may face. Certain exclusions, or guarantees of compliance by you, may create situations where the necessary coverage might not be in place. Having a good insurance broker, one that will ask you pertinent questions that properly address this concern, is of the utmost importance.
Your Texas Cargo Insurance policy can also contain provisions to insure the cargo when it is in your terminal or warehouse. This exposure results when the freight cannot be delivered the same day or winds up being consolidated with other shipments. The coverage exists so long as there is no separate charge made for storage or warehousing.
Motor truck cargo insurance, comparable to having a Warehouseman’s legal liability insurance policy, protects you for most of the freight you charge storage charges for storing or taking control of. You owe it to yourself to utilize a warehouse receipt, which is similar to a bill of lading, for the storage of any items, which specifies the terms of your storage contract. If this process seems somewhat complicated, take the time to secure the advice of an agent familiar with these lines of coverage.