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 maximum level of cargo insurance coverage is called the All Risks Clause. This coverage will provide payment for all perils except for expenses being caused by delay of shipment or nature of the cargo. It is important to understand that anything above the basic cargo insurance policy, or S.G. Policy, must be added on.
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.
Clause A is used in place of the All Risks Clause. It will cover risks of loss or damage of the cargo excluding those related to unsuitable packing, operators of the vessel, or wear and tear among others.
Document Clause B is related to what the ICC term With Average Clause. It will cover disasters such as earthquakes, collision of vessel, fire, and lightning. Clause B has more coverage than Clause A because it includes deliberate damage to cargo.
Document Clause C is referred to what the ICC calls the Free from Particular Average Clause. Clause C is much like Clause B except it does not cover for items such as lightning, water damage, and earthquakes.
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.