Trucking Insurance

Trucking Insurance coverage has many different levels of coverage for the driver, truck, and cargo. The basic policy for cargo is usually called S.G. Policy or the Ships and Goods Policy. While this will cover damage and loss to the cargo caused by particular circumstances, further protection can be added to the policy by Institute Cargo Clauses (ICC).

The maximum level of cargo insurance coverage is called the All Risks Clause. This coverage will provide payment for all perils except for expenses being caused by delay of shipment or nature of the cargo. It is important to understand that anything above the basic cargo insurance policy, or S.G. Policy, must be added on.

Because many people have a hard time understanding their insurance policies or documents, some providers have adapted a new system. They use documents pertaining to the ICC in place of the S.G. Policy.

The All Risks Clause is referred to as Clause A. Coverage for the cargo in most circumstances is obtained through this clause. A couple of exceptions include financial default of owners, loss in weight or volume, or wear and tear.

What the ICC terms the With Average Clause would be Clause B. Coverage for expenses related to situations such as fire, earthquake, or lightning are obtained through this clause. Clause B is like Clause A except there is the addition of purposeful damage to cargo.

Clause C is that the ICC calls Free from Particular Average Clause. This clause is similar to Clause B except it does not cover earthquakes, lightning, or water damage.

When you are trying to determine the amount of insurance coverage that you need, make sure and research what your options are pertaining to cargo insurance. Talk with an insurance agent if you have any questions about what is the best type of coverage for your situation.

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