Commercial auto insurance is essential for any business that uses vehicles for their operations. But what about the cargo that these vehicles carry? Does commercial auto insurance cover it? As a business owner, it’s essential to understand the limits and exclusions of commercial auto insurance coverage to ensure that your cargo is protected.
Commercial Auto Insurance and Cargo
Some commercial auto insurance policies may include a limited amount of coverage for cargo as part of their standard package.
However, this coverage is often limited and may not provide enough protection for businesses transporting high-value cargo. Additional coverage or a separate cargo insurance policy may be necessary.
Commercial auto insurance coverage typically includes liability and physical damage coverage.
Liability coverage pays for damages to third-party property or bodily injury in case you are at fault in an accident.
On the other hand, physical damage coverage covers your vehicle’s repair or replacement costs if it is damaged or stolen.
Cargo insurance is a separate coverage that protects the goods that your vehicle is transporting.
About Cargo Insurance
Cargo insurance provides coverage for loss or damage to your cargo, including thefts, accidents, or other incidents that could cause damage to your goods while in transit. This coverage is essential for businesses that regularly transport expensive or fragile goods and want to ensure that they are financially protected in case of theft or damage.
Cargo insurance is not automatically included in commercial auto insurance plans and must be purchased separately.
Generally, there are two types of cargo insurance: named-peril insurance and all-risk insurance.
Named-peril coverage only covers specific risks that are listed in the policy, while all-risk coverage covers all types of risks unless explicitly stated as exclusions in the policy.
Business owners should discuss the best option with their insurance provider to ensure that they have adequate coverage.
Wrapping It Up
Commercial auto insurance provides essential coverage for businesses that use vehicles for their operations. While this includes liability and physical damage coverage, cargo insurance is a separate coverage that protects the goods that your vehicle is transporting.
Business owners should review their commercial auto insurance policy and discuss coverage options with their insurance provider to ensure adequate protection for their cargo.
Investing in proper insurance coverage not only protects the business from financial loss but also provides peace of mind in case of unexpected incidents.
Need Commercial Auto Insurance? Uniserv Is Here To Help
Whether it’s life insurance or business insurance, we offer a wide range of insurance solutions to protect the things you value the most.
We serve companies and individuals all over California. Call 888-698-6473 today or fill out the contact form to get the dependable protection you deserve.
