Cargo Coverage for Trucking Insurance
Trucking Insurance coverage has many different levels of coverage for the driver, truck, and cargo. The basic policy for cargo is usually called S.G. Policy or the Ships and Goods Policy. While this will cover damage and loss to the cargo caused by particular circumstances, further protection can be added to the policy by Institute Cargo Clauses (ICC).
The All Risks Clause is the highest level of cargo insurance coverage available. This offers protection for expenses and losses excluding those caused by delay in shipment or related to the type of cargo being transported. Any coverage above the S.G. Policy has to be added to the trucking insurance policy.
Because many people have a hard time understanding their insurance policies or documents, some providers have adapted a new system. They use documents pertaining to the ICC in place of the S.G. Policy.
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.
Clause C is that the ICC calls Free from Particular Average Clause. This clause is similar to Clause B except it does not cover earthquakes, lightning, or water damage.
It is important that drivers understand what all their options are for coverage before they purchase trucking insurance coverage. If there is any concern about having adequate coverage for their situation they should contact an insurance agent.
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