Cargo insurance is coverage that can apply to commercial vehicle cargo. Businesses may purchase coverage for transporting goods so they can help prevent financial losses incurred for covered events involving cases like damage to or theft of the cargo the business is carrying.
Types of cargo insurance
There are several types of commercial vehicle cargo insurance, including a variety of specialty shipping insurances that only apply to certain industries.
Here are two of the most common types of cargo coverages:
- Land cargo insurance: This insurance may help cover goods transported by truck or train and typically only applies to domestic shipments.
- Marine cargo insurance: This can help cover cargo transported by ship and may apply to international transportation.
How cargo insurance works
Similar to your car insurance, cargo coverage’s limits and exclusions may be stipulated by the specifics of your policy. It’s important to choose a policy that meets your company’s needs.
These common forms of loss may be covered under a cargo insurance policy, depending on the specific policy terms:
- Damage due to accidents or weather events, or losses in emergency actions, such as jettisoning of cargo at sea.
- Theft.
- Transit delays (many plans may offer this as an add-on for an additional premium).
These forms of loss are usually not covered by most policies:
- Damage due to improper packaging.
- Damage or loss due to negligence.
- Issues stemming from war or terrorism.
If you file a claim, you can expect it to go through the full claims' evaluation process, depending on the findings you may or may not receive a settlement based on the limits of your specific policy.
Please note that IIA offers a limited amount of cargo coverage through the insurance carrier Pro Progressive.
Explore insurance options with Infinity Insurance Agency, Inc.
Whether you’re looking for commercial auto insurance or auto insurance for your personal vehicle, IIA works with 20+ insurance carriers to provide you with a free quote. Call 1-855-478-3705 to get started!