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Motor Truck Cargo 'Extra' Coverages
Bulletin – Thursday, April 24, 2008
Motor Truck Cargo coverage forms do not need to be “filed” with the state regulatory authority. There are probably as many Cargo forms as there are carriers providing this coverage. There are very important coverages that are included in many policy forms. Following is a list of some of the extra coverages to watch for in Motor Truck Cargo forms.
- Debris Removal – covers cost to remove cargo debris from the scene of an accident. The commodity is damaged to the extent that it has no salvage value.
- Pollutant Clean Up and Removal – costs to remove, or extract, materials considered a pollutant by that company’s policy form.
- Earned Freight Charges – pays for uncollectible freight charges. If a loss occurs during the transit of a commodity, the trucker may not get paid.
- Loading and Unloading – coverage for loss that occurs while a commodity is being loaded or unloaded from the vehicle.
- Mechanical Breakdown or Refrigeration Breakdown – coverage for loss to commodity being hauled as a result of breakdown of the truck or trailer’s refrigeration or temperature control system, subject to certain restrictions.
- L.T.L. (Less then Trailer load) – covers liability of the insured for cargo while unloaded and held pending transfer at named terminals.
- Hired Auto Cargo – coverage for any non-owned power unit while operating for the insured.
- Tarpaulin Warranty – coverage for perils such as wetness, dampness, rust, and corrosion are excluded unless the load is completely and securely covered by a waterproof tarp.
- Collision of Load – covers accidental collision of the cargo any other object, excluding collision with the vehicle.
- Accounts, deeds, bills, letters of credit and other documents may be excluded, or
coverage is limited to the actual to replace a document (not the face value of
the document). - Live animals may be excluded, or are covered on a named perils basis only.
- Target interest commodities (high theft target items such as tobacco, alcohol,
Garments) may be excluded; a lower sub limit or higher theft deductible may apply. - Paintings, works of art, jewelry, fur, and other valuables may be excluded.