American Team Managers

Trucking Liability Insurance: General vs. Cargo

The trucking industry is a much needed and vital part of many other industries, allowing for the transportation of large shipments across the country. However, along with this necessity comes many risks. It's well understood how financially dangerous cargo truck businesses can be, as much is put at stake during the job every day. For that reason, it's not only highly recommended but also legally required that trucking services include insurance in order to protect those involved. What's the difference when it comes to general liability and cargo liability insurance? Should you get both?

General Liability

The bare minimum requirement legally when it comes to trucking insurance is general liability coverage. This policy is put in place in order to handle the fees required should an accident happen involving a company truck in which external property is damaged or other drivers are injured. These types of basic programs are very limited in their coverage.

Cargo Liability

While not legally required, cargo liability insurance can be a financial savior. Should an accident happen where the shipped cargo was to be damaged, general liability would not be able to cover the costs to repair all the lost shipment items. As opposed to being a consecutive policy that has broader coverage, the cargo liability insurance is put in place with the intentive purpose of focusing on the necessary shipments, as explained by American Team Managers. This ensures the proper coverage of the necessary items in transit.

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