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Business Protection Bulletin

Do You Need Cargo Insurance For Local Delivery?

By March 3, 2017No Comments

When we think of trucking, we think of people making long hauls across state lines, delivering trailers filled with various goods loaded onto big eighteen wheelers. In reality, a lot of the miles truckers put on the road are done locally, making deliveries across town or at least within the same county. We like to think of truckers making cross-country trips from coast to coast, taking in Southwestern sunsets and driving through the mountains of Colorado. But long-haul is only one part of the trucking game. A lot of people who carry cargo for a living are making 10-mile, 15-mile trips in vans and box trucks.

If this is your company, the question is: Do you need trucking cargo insurance?

The answer: Not really. You do need cargo van insurance and liability coverage, but you’re going to be looking at a very different policy than a company that deals in eighteen wheel delivery is going to sign.

A long-haul trucker is specifically looking at policies designed to cover long-haul truckers. They’re dealing in a greater volume of cargo and a lot more miles between between stops. These policies are just plain bigger overall. They cover a greater cost and a greater risk. This is not to say that local truck drivers don’t have their share of risks, you’re likely to get into your share of fender benders in the city, but it’s the highway that carries the greater risk of serious accidents taking place, and every mile multiplies that risk.

Making smaller deliveries, there’s usually no point in insuring $500 of fresh baked bread for a 10 mile trip from the bakery to the grocery store. If you’re delivering your own goods, more likely than not you’re going to be eating any costs involved in damaged cargo, or else your business policy is going to cover it.

If you’re delivering on behalf of others, liability insurance will cover you more often than not. If you’re not using your van to make unreasonable deliveries, if you’re not trying to carry thousands of dollars worth of electronics across three states, then there’s no reason not to expect your basic liability coverage to protect you.

Trucking cargo insurance frequently covers the specific load being hauled from point A to point B for the duration of that trip. If you don’t need an eighteen wheeler and you’re not crossing state lines, liability insurance should cover your smaller deliveries.