What insurances are necessary for a trucking company?

What insurances are necessary for a trucking company?
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Each shipment must be covered by at least two types of insurance: transportation insurance, which is purchased by the exporter, and liability insurance, purchased by the carrier.

The second category, third-party insurance, has several types of clauses that guarantee the carrier compensation (claim reimbursement or indemnity) when the carrier is required to pay for the repair of damage or loss of the transported cargo. Loading and unloading of shipments, in all modes of transportation, also requires additional protection.

For both inland and international shipments, cargo insurance covers damage to goods while being transported by sea/river, land and air, or when multiple modes of transportation are used along the route (multimodal route). A cargo owner typically purchases a multimodal or intermodal insurance policy to cover risks that may occur with the mode of transportation used to transport the cargo, all the way from origin to destination.

For ground transportation, a separate insurance policy can be purchased, meaning you can do this for each shipment individually. Regardless of whether the owner of the goods will transport the cargo with his own fleet or a subcontracted service, the insurance guarantee is total, covering damage caused during transport, as well as theft.

International transport insurance is a type of insurance, used in foreign trade, because the terms of the commercialization contract determine the party responsible for taking out insurance. This insurance must be purchased according to the risk of travel and the negotiated terms of purchase/sale. The policy must comply with the terms of the import/export contract, which vary according to the legislation of each country. In practice, its coverage is the same as inland insurance, but the required destination country criteria must be established with the insurance company.

Some insurance companies offer other types of cargo insurance with several additional benefits for logistics risk management. It is up to the party taking out the policy to evaluate the options and choose the one that best fits their reality.

So it is a safe assumption that insurance plays a very important role in cargo transportation, and it benefits the cargo owner and its customers alone.

Before choosing an insurer, use services such as a third party liability calculator and a third party AC calculator to choose the most basic insurance that will benefit you

Risks and measures

Typical risks associated with transporting goods are damage, loss or theft.

The shipper is responsible for ensuring that the shipment is properly packed. If a shipment has damaged or inadequate packaging when it is received by the carrier, the carrier will note this fact on the shipping documentation. In the case of air or sea freight, if the goods inside are visibly damaged at the time of receipt by the consignee, then the carrier is directly liable. In the case of road transport, an endorsement on the transport documents is sufficient. In all cases, notification must be made immediately and in writing. If the damage to the shipment is not immediately apparent, the carrier must be informed within three working days of liability in the case of air or sea freight, or within seven working days in the case of road transport. Goods are generally delivered to the consignee even if damaged, unless further transportation is pointless or impossible.

Lost or stolen goods

This includes the loss or provable theft of part or all of a shipment. In these cases, it is important to show that the loss or theft occurred while the goods were in transit. As a general rule, loss is indicated by an endorsement on the shipping documentation, which lists the contents and quantity of the shipment. The carrier shall sign the shipping documentation upon the receipt of the shipment. If the consignee discovers a defect upon receipt and notes this on the shipping documentation, this is proof that the defect occurred in transit.


Late delivery of goods can sometimes lead to financial loss. Carriers and freight forwarders are almost never liable for this type of damage. At most, they are required to reimburse you for freight costs incurred if errors or negligence can be shown. Usually, you cannot get insurance for consequential damages. This is because it is difficult to quantify the exact extent of such losses and estimate the level of risk involved.

(Photo: pixabay.com)

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