Transit business runs successfully only until the trust between client and transporter is strong. As a commercial transit business owner, it is your responsibility to ensure the strength of the trust factor by providing adequate coverage against any potential damage or loss. Every day, you may have to deal with different types of cargos that can be fragile or robust. Also, some of them may have value more than the entire carrier vehicle. Their safety and security completely depend on carrier liability insurance. As the name is illustrating, carrier liability insurance is coverage to cargo against various potential threats. Before investing in such insurances, you need some basic knowledge. We are mentioning some important information below for your convenience.
Coverages to Expect in a Carrier Liability Insurance
If the carrier vehicle got damaged due to accidental collision, explosion or fire.
In some cases, we have to face the issue of lost cargo or its damage during the transit period. Whether it is substantial or partial damage, carrier liability insurance policy covers everything.
Damage occurred during the indirect cargo handling.
Costs including cargo salvage, transshipment, emergency storage expenses.
Damage due to natural calamities or other cargo during the journey.
Cargo’s legal expenses such as litigation against claimants.
Some exclusions to remember
Every insurance policy comes with positive and negative aspects. The same thing is applicable in a carrier liability insurance too. They cover the maximum possible potential threats but some of them may be out of the liability list. Here is a list of some common exclusion. On your first meeting with an insurance agent, clarify all exclusions in detail.
Depreciation or loss of cargo due to the confiscation by legal authorities.
Prohibition by the government due to unfulfillment of parameters like no permit or license.
Vandalization by terrorists or mobs.
Several kinds of damages in perishable goods. Check their clauses of exclusion in the contract form.
Goods being illegally smuggled got damaged or lost.
Consequential loss arising from the loss of cargo.
Some exclusions like damage due to riots, strikes, acts of terrorism, perishable goods can be customizable according to the requirement of a particular business. It is advisable to figure out an insurance company offering customizable insurance policies. Some exclusions can be added to the liability list for extended coverage.