How to Get Cargo Insurance and Handle a Cargo Claim
Many brokers ask truckers for proof of cargo insurance before they give out a load. Here is why carriers pay for damaged freight, what to tell your agent, what to check before you sign, and what federal rules say when a shipper files a cargo claim.
Why Carriers Pay for Damaged Freight
A federal law known as the Carmack Amendment says a carrier that hauls freight across state lines must issue a receipt or bill of lading. The carrier is then liable to the owner for the actual loss or damage to that freight. Cargo insurance helps you cover that risk, because a policy can pay covered claims.
The same law says a carrier cannot give shippers less than 9 months to file a claim, or less than 2 years to sue after the carrier denies a claim in writing. So a claim can arrive months after you deliver the load.
Tell Your Agent Everything You Haul
Cargo policies do not cover every kind of freight, and each insurance company writes its own list of what is and is not covered. One large cargo insurer, for example, lists art, jewelry, money, contraband, and explosive or radioactive material among the goods its policy does not cover.
Give your agent a full list of what you haul, including loads you take only now and then. If a broker offers you something new, ask your agent before you accept it.
Make Sure the Paperwork Matches the Load
Some cargo policies do not cover items that are missing from the shipping papers, such as the bill of lading. Before you leave, check that the bill of lading lists what is actually on your truck, and keep a copy.
Questions to Ask Before You Sign
The name of a policy form does not tell you what it covers. Two policies with different names can cover the same risks. Before you buy, ask your agent for these.
- A list of the risks the policy covers
- A list of the risks and goods the policy does not cover
- The deductible you pay on each claim
For the limits brokers usually ask for and what a cargo policy can include, see our motor truck cargo insurance page.
When a Shipper Files a Cargo Claim
If you haul across state lines, federal rules set how a cargo claim must be handled.
- The claim must be in writing. It has to identify the shipment, say the carrier is liable, and ask for a specific or determinable amount of money.
- You must confirm in writing that you received the claim within 30 days, unless you pay or decline it within that time.
- You must pay, decline or make a firm settlement offer in writing within 120 days. If the claim is still open at that point, you must send the shipper a written status update, and another one every 60 days after that.
Tell your insurance agent as soon as a claim comes in, so your policy can respond in time.
Cargo Insurance FAQ
Does my truck liability insurance cover the freight I haul?
No. Liability insurance pays for injuries and damage you cause to other people and their property. The federal MCS-90 endorsement on a carrier's liability policy says it does not apply to property carried as cargo. Freight needs its own cargo coverage.
Does Fifty Bridges offer cargo insurance?
Yes, in the states where we are licensed. Options depend on your state and your operation.
Related Coverage
Learn more about Cargo Insurance, Owner-Operator Insurance and Commercial Truck Insurance. More articles are on the Fifty Bridges blog.
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Tell us what you haul and the limits your brokers ask for, and we will compare cargo insurance options for your operation.