It can be exhilarating when your company becomes large enough that you are beginning to engage in large shipments of cargo by road freight, rail, plane, or ship. There is no more important time than to make sure you are covering all of your bases when it comes to cargo insurance. There are many different factors to consider when investigating cargo insurance quotes, particularly the actual legal requirements for cargo insurance. The federal government has some regulations in place, and it makes sense to familiarize yourself with these requirements, whatever shipment method you plan to use.

Because the vast majority of cargo is transported by motor carrier (truck or van), it makes sense to look at those regulations first. Remember – just because the federally mandated cargo insurance regulations have low minimums does NOT mean that you should only purchase the least amount of cargo insurance allowed.

Listed below are the regulations set forth by the Department of Transportation (DOT).

First, the form BMC-91X and the form BMC-34 must be filed with the DOT by all contract carriers of cargo. The minimum liability required is $750,000 in coverage for non-hazardous goods, $1,000,000 for hazardous materials (check for definitions of hazardous goods) and $5,000,000 for the most hazardous materials. (again, you can check the federal regulations for what good fall into what hazardous classification) Few trucking companies carry the $5,000,000 liability coverage. The vast majority prefer to only transport goods that fall into the first two categories. Additionally, the Carmack Amendment to the DOT regulations also makes the trucker liable for the market value of the goods if they are lost or stolen. The insurance requirements, however, are relatively low, only $5,000.

If you are a cargo shipper, your goods are likely to be valued higher than the federal cargo insurance regulations minimum requirements will cover. In order to avoid the substantial loss of goods when shipping, it is imperative to purchase additional cargo insurance unless you intend to restrict your cargo shipments to less than the value of the shipping companies liability minimums. It is also very important to carefully review the cargo insurance policies – whether those offered by the shipping company or by you to protect your materials – for any coverage loopholes. Exclusions can leave you short-changed when it comes to filing a claim for goods, particularly those that are stolen.

When you are getting your cargo insurance quotes, it is important to know the federal cargo regulations because you do not want to ship your cargo with less insurance coverage than the cargo is worth. Take the time to select both your shipping company and your cargo insurance coverage with care!

Whether your cargo is being delivered to a port of export or being shipped to customers on this continent, you are using inland freight to get your products where they need to go. Whether you ship small or large amounts of cargo, more than half of all cargo in the United States is sent by road freight. It is important to protect your cargo when shipping by road freight, and cargo insurance is the best way to provide that coverage.

Unlike shipping by rail or ocean, road freight cargo insurance is generally designed to protect the shipping company and the truck driver, rather than the owner of the cargo. Because most shipping companies and drivers carry substantial coverage, cargo owners can easily shortchange themselves by not including additional cargo insurance to protect their investment. Your cargo is best protected when everyone involved in the shipment – customer and cargo owner, trucker, and trucking company – all have adequate coverage. If you are someone who is involved in road freight, what should you consider when evaluating your insurance quotes?

Here are critical components to keep in mind:

• Total Loss Coverage- This is defined as no matter what happens to the cargo – collision, fire, acts of God– your goods are covered. However, it only covers your cargo if the entire shipment is destroyed.
• Basic Risk Coverage- this is similar to the Total Loss Coverage, but also includes theft or non-delivery.
• All Risk Coverage- this is the most comprehensive cargo insurance coverage available for road freight, and covers both full cargo loss and partial. It also includes additional coverage for things such as employee strikes, war, civil disruptions, duty, and adds in “door to door” coverage for your cargo.
• Door to Door coverage – your cargo is covered while it is in the possession of the shipping company. However, once it is delivered by that shipping company, it might need additional coverage. Examples of this would be if your goods were at a dock or in a warehouse.

Are you the owner of a shipping company, a long distance trucker, or the customer needing to ship your cargo across the country using road freight? If so, cargo insurance is a critical element to protecting you and your cargo. Shopping online for road freight cargo insurance is the best way to find the best policy for your needs. Be sure to use Cargoinsurance.com to receive quotes from multiple companies.

When you are shipping cargo for your business, some of it is likely being shipped to customers and locations within your state. Other cargo is shipped outside of your state to reach customers or even ports for international shipping. You need to protect your goods while they are traveling regardless of the route they are taking. How do you make sure to meet the regulations that arise in the interstate verses intrastate shipment of cargo?

First, we need to define and detail the differences between interstate and intrastate cargo. Interstate is defined as any cargo that is transported across state lines. Intrastate is cargo that stays within a state’s border. So, for instance, if you transport from Pittsburgh to Philadelphia, that is intrastate, but Pittsburgh to Cleveland is interstate.

As a shipping company you must meet certain requirements in order to transport goods across state lines. You need to adhere to the Federal Motor Carrier Safety Regulations (FMCSR, a regulatory body within the Department of Transportation) and the federal Hazardous Material regulations. In addition, you must be sure to meet the safety and insurance requirements of any state you travel through, particularly cargo insurance requirements.

Keep in mind that intrastate deliveries of cargo are only required to meet the standards of the state in which the cargo is delivered to. Motor freight cargo requirements vary a bit from state to state, but are generally very similar to the FMCSR requirements. Intrastate cargo insurance requirements are a bit easier to meet, particularly if there are no port deliveries. You need to follow the cargo insurance regulations of your state if you intend to deliver or send intrastate cargo.

One important thing to remember is that when you transport goods across state lines, you are going to need a more inclusive and likely more expensive cargo insurance policy. Two factors go into this. First, you will need to meet federal regulations for cargo insurance. Secondly you will also need to consider the greater risk involved in transporting cargo across state lines. When you investigate your cargo insurance quotes, it is important to keep these factors in mind.

Shipping cargo is a tricky business regardless of where it is going. Whether you are shipping your cargo and products across town or across the nation, it is critical that you have enough cargo insurance coverage to protect your investment. Rather than trying to consider all these factors yourself when purchasing cargo insurance, using a trusted and website like CargoInsurance.com is a wise decision. Good luck and good shipping!