Trucking Insurance - Cargo Coverage
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 All Risks Clause is the highest level of cargo insurance coverage available. This offers protection for expenses and losses excluding those caused by delay in shipment or related to the type of cargo being transported. Any coverage above the S.G. Policy has to be added to the trucking insurance policy.Wording on insurance policies can be hard for many people to understand. Documents related to the ICCs can be used in place of the S.G. Policy.Clause A is used in place of the All Risks Clause. It will cover risks of loss or damage of the cargo excluding those related to unsuitable packing, operators of the vessel, or wear and tear among others.
Document Clause B is related to what the ICC term With Average Clause. It will cover disasters such as earthquakes, collision of vessel, fire, and lightning. Clause B has more coverage than Clause A because it includes deliberate damage to cargo.What the ICC calls Free from Particular Average Clause would be Clause C. With the exclusion of things such as volcanoes, earthquakes, or water damage it is like Clause B.It is important that drivers understand what all their options are for coverage before they purchase trucking insurance coverage. If there is any concern about having adequate coverage for their situation they should contact an insurance agent.