Cargo Coverage for Trucking Insurance
There are many options available for drivers and fleet owners when it comes to Trucking Insurance coverage. Most customers will require the truck to have cargo insurance coverage, the basic of which is called Ships and Goods Policy or S.G. Policy. Specific types of damages and losses to the cargo are covered through this basic policy, but many choose to add extra coverage through 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.
Often it is hard to understand the wording of insurance documents and policies. Therefore some providers have replaced the S.G. Policy with documents pertaining to the ICC.
The document called Clause A is used in place of the All Risks Clause. Excluding some situations such as wear and tear, fault of operators, and loss in weight, expenses and losses to the cargo will be covered through Clause A.
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.
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.
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.