Motor Truck Cargo (MTC) insurance provides coverage for the trucking company for liability that it might incur against a customer’s cargo while it is in their care, custody, and control. The trucking company sets the value of the cargo that they are hauling on a per load basis, and for catastrophic events on a per occurrence basis should there be multiple loads at a terminal over night. This is why often times the limits will be displayed as such $100,000 / veh $200,000 occ/ $200,000 cat.
Most of the policies that are written by seasoned underwriters are extremely comprehensive, and cover most anything, with the exception of what is excluded. Common exclusions are: Govt. Action, Nuclear hazard, War and Military.
There is also certain property that is not covered. Common items not covered: Accounts, bills, deeds, money, currency, diamonds, precious stones, and animals.
The main thing to remind yourself of is that MTC insurance is a third party liability coverage that protects the trucking company against damage and or loss to a customer’s products, but only to the extent of the truckers negligence in the occurrence. Not everything is covered, and there are always things that are not covered.
Once the program is in place it is important for the trucking company owner to communicate with not only his insurance agent, but his customer to determine what the exposure is and make sure that there are no gaps in everyday coverage.