Securing Your Shipments: Cargo Coverage in Commercial Auto Policies

Commercial auto insurance is crucial to safeguarding your business against unexpected financial burdens resulting from accidents involving your company vehicles. While many business owners understand the importance of insuring their vehicles, there often needs to be more clarity that standard commercial auto insurance provides complete protection. However, there is a crucial aspect of coverage that often gets overlooked: cargo coverage. Keep reading to learn more about the basics of commercial auto insurance, explore where cargo coverage fits into the equation, and discuss how you can expand your protection with inland marine insurance.

The Basics of Commercial Auto Insurance

Commercial auto insurance protects your business from financial losses caused by accidents involving your company vehicles. These accidents could include injuries to your employees or third parties, property damage, etc. It is mandatory in most states to carry commercial auto insurance if your business uses vehicles for any purpose.

Typically, commercial auto insurance policies include several essential coverages, such as:

• Liability Coverage: This coverage pays for injuries and property damage to others when your company vehicle is at fault in an accident.
• Collision Coverage: It covers the cost of repairing or replacing your vehicle in the event of a collision, regardless of fault.
• Comprehensive Coverage: This coverage protects your vehicle from non-collision-related damage, such as theft, vandalism, or natural disasters.
• Medical Payments Coverage: It pays for medical expenses incurred by your employees or passengers in your company vehicle in case of an accident.
• Uninsured/Underinsured Motorist Coverage: This coverage helps when the other party involved in an accident has insufficient insurance or is uninsured.

Where Does Cargo Coverage Come into Play?

Cargo coverage is an essential component of commercial auto insurance, especially for transportation or delivery services businesses. This coverage is designed to protect the goods or cargo being transported in your vehicles. Without cargo coverage, your business could risk significant financial loss if the shipment is damaged, lost, or stolen during transit.

Cargo coverage typically includes protection for the following scenarios:

• Collision: If your vehicle is involved in an accident and the cargo is damaged, cargo coverage will help cover the cost of replacing or repairing the cargo.
• Theft: If the cargo is stolen from your vehicle, cargo coverage will compensate for the value of the stolen goods.
• Non-collision Damage: This includes damage to cargo caused by factors such as fire, vandalism, or severe weather conditions.

Expanding Your Protection with Inland Marine Insurance

While cargo coverage is essential for protecting your goods during transit, it's worth noting that it may not cover all types of cargo or circumstances. That's where inland marine insurance comes into play. Inland marine insurance is a specialized form of coverage designed to protect valuable goods while they are in transit or stored temporarily away from your primary business location.

Inland marine insurance provides more comprehensive coverage for a wide range of situations, including:

• High-Value Cargo: If your business transports precious cargo, inland marine insurance can provide coverage beyond the limits of standard cargo coverage.
• Specialized Equipment: If your business uses specialized equipment that is not adequately covered by standard cargo insurance, inland marine insurance can fill the gaps.
• Temporary Storage: If your cargo is temporarily stored at a different location, such as a warehouse or distribution center, inland marine insurance can continue to provide protection.
• Modes of Transportation: Inland marine insurance can cover cargo transported by several means, including trucks, ships, and airplanes.

Secure Your Cargo and Business Today with Little & Sons Insurance!

Don't leave your cargo and business exposed to unnecessary risks. Contact us today to discuss your commercial auto insurance needs and how cargo coverage and inland marine insurance can provide the comprehensive protection your business deserves. With Little & Sons Insurance, you can confidently drive your business forward, knowing that you have the right coverage in place. Your cargo's safety and your business's success are our top priorities.