Insurance Agents
  • Trucking Insurance
    • Trucking Insurance
    • Automobile Liability
    • Motor Truck Cargo Liability​ (Cargo Insurance)
    • Physical Damage Coverage
    • General Liability Coverage
    • Bobtail Insurance
    • Non-Truck Liability
  • Commercial Insurance
    • General Liability
    • Commercial Insurance
    • Business Owners Package (BOP) Insurance
    • Real Estate
    • Workers Compensation
  • Personal Lines
    • Vehicles >
      • Auto Insurance
      • ATV Insurance
      • Motorcycle Insurance
      • Roadside Assistance
      • RV Insurance
    • Property >
      • Home Insurance
      • Flood Insurance
      • Landlords Insurance
      • Renters Insurance
    • Other >
      • Life Insurance
      • Boat Insurance
      • Umbrella Insurance
  • About
    • Refer a Friend
    • Insurance Carriers
    • Privacy Policy
    • Blog
    • Accessibility Statement
  • Service
    • Report a Claim
    • Policy Review
    • Make a Payment
    • Update Contact Info
    • Policy Changes
    • Proof of Insurance
    • Contact My Carrier
    • Free Consultation
  • Trucking Insurance
    • Trucking Insurance
    • Automobile Liability
    • Motor Truck Cargo Liability​ (Cargo Insurance)
    • Physical Damage Coverage
    • General Liability Coverage
    • Bobtail Insurance
    • Non-Truck Liability
  • Commercial Insurance
    • General Liability
    • Commercial Insurance
    • Business Owners Package (BOP) Insurance
    • Real Estate
    • Workers Compensation
  • Personal Lines
    • Vehicles >
      • Auto Insurance
      • ATV Insurance
      • Motorcycle Insurance
      • Roadside Assistance
      • RV Insurance
    • Property >
      • Home Insurance
      • Flood Insurance
      • Landlords Insurance
      • Renters Insurance
    • Other >
      • Life Insurance
      • Boat Insurance
      • Umbrella Insurance
  • About
    • Refer a Friend
    • Insurance Carriers
    • Privacy Policy
    • Blog
    • Accessibility Statement
  • Service
    • Report a Claim
    • Policy Review
    • Make a Payment
    • Update Contact Info
    • Policy Changes
    • Proof of Insurance
    • Contact My Carrier
    • Free Consultation

Publix Insurance Agency Blog

Cargo Insurance Changes for the Trucking Industry

9/30/2020

0 Comments

 
Picture
The past year has been difficult for cargo insurance companies. Three claims in particular had an adverse impact on the cargo insurance industry. A big loss at a distribution facility following tornados in Nashville, a loss in the Port of Beirut and a loss aboard the Golden Ray vessel, which lost 4,200 vehicles on board. All cargo insurance carriers share the same reinsurance markets, so ocean cargo and international losses influence the domestic truck cargo insurance market as well. These large losses lead to increased premiums and coverage changes for all cargo insurance policies.
As a result, truck owners and operators need to understand these changes. Below is a list of some general changes that insureds may expect in their next cargo insurance renewal cycle.

Premium increases – With losses on the rise, premium always follow. The average premium increase for loss free accounts is between ten and twenty percent for the most recent cargo insurance renewals. Insureds with a recent history of claims can expect even higher increases.

Covid-19 and Health Hazard exclusions – The significant supply chain disruption caused by Covid-19 has led to an increase in cargo insurance claims. As a result, most all cargo insurance renewals have new exclusions for losses due to Covid-19 or a similar health related cause. With this exclusion in place, trucking companies need an effective business continuity plans in place in order to manage supply chain disruptions as they occur. Otherwise, the truck operators could face an uninsured loss.

Cyber Liability exclusion – On the surface a cyber-liability exclusion may seem like a minor issue when it comes to truck cargo insurance. However, given the increased use of electronics in trucks and at distribution facilities, truck operators need to understand that a loss resulting from a cyber-attack could be uninsured.

Coverage terms – When insurers pay large losses, they compensate by tightening coverage terms. Cargo insurance carriers achieve this in several different ways. Insurers may require a higher deductible in order to write a renewed policy. Another way insurers limit their exposure is by increasing the exclusions. Typical exclusions under a cargo insurance policy include live animals, jewelry, expensive paintings and some forms of chemicals. However, any load with an increased risk may cause insurers to further increase premiums.

Add on Coverage – Truck operators can also add various ancillary coverages to the cargo insurance
policy. Given that each of these present a unique risk, insureds should expect related premium increases over and above typical increases for cargo insurance. These include the below optional coverages.
  • Refrigeration breakdown coverage – covers losses caused by malfunctions in temperature control units.
  • Earned Freight – replaces income lost when a load is not delivered due to a covered cargo loss.
  • Removal Expenses – coverage if a load is accidentally dumped on a roadway or waterway. Covers the cost to remove debris or pollutants.
  • Sue and Labor Coverage – covers costs related to preventing further loss to damaged cargo.
  • Earned Freight Coverage - covers freight charges the customer loses from not delivering a load.
  • Loading & Unloading Coverage – provides coverage for the commodity while it is being loaded or unloaded.

Truck operators must understand the changing cargo insurance climate in order to make sure that they secure the best possible coverage at the most competitive price.
0 Comments



Leave a Reply.

    Contact Us

    (630) 550-0150
    ​201 E Army Trail Rd. Ste 210
    Bloomingdale, IL 60108
    Click Here to Email Us

    Archives

    April 2021
    October 2020
    September 2020
    June 2020
    April 2020
    March 2020
    February 2020
    September 2019

    Categories

    All

    RSS Feed

Licensed in: IL AL AZ CA FL GA IA IN KS KY MD MI MN MO NE NJ NY OH PA TX UT VA WA WI
Picture
Picture

Navigation
Homepage
Insurance Quotes
Policy Service
Insurance Products
Privacy Policy
Contact Us
Agent Login

​Connect With Us

Contact Us
Publix Insurance Agency
201 E Army Trail Rd. Ste 210
Bloomingdale, IL 60108
(630) 550-0150​
Click Here to Email Us
Picture
Location


 ©Copyright 2020 PUBLIX INSURANCE AGENTS All Rights Reserved