Practically everyone that has ever shipped goods, or taken on the responsibility of delivering goods for another entity, knows what cargo insurance is, as well as how coverage works. One should never overlook the importance of having cargo insurance in Texas when shipping goods. If you don’t think it necessary, think of the consequences of not having cargo insurance.
For example, what would happen to your company if an entire shipment were lost or if the shipment being transported sinks along with the vessel carrying it? If a truck carrying goods gets into an accident and the freight is damaged then your company will be responsible for at least a share of the losses. How would that affect your bottom line? Better to carry a policy and never have to find out.
Insurance is a necessary part of the equation
Legally, all carriers must carry a minimum amount of insurance. This is known as a carrier liability policy. However, carrier liability provides very limited coverage, and anything from natural disasters to vehicle accidents or even acts of terror could wind up damaging cargo. Therefore, shippers will often request cargo insurance be in place to protect their goods from loss, damage, or theft while in transit.
Cargo insurance does have limitations. When shipping via truck in the US, cargo insurance doesn’t provide protection against all losses a motor carrier may be liable for under the Carmack Amendment or common law. There simply isn’t a single, standard form of cargo insurance in texas that a carrier can buy and be fully protected, but without insurance any loss suffered would be extremely costly.
Marine Cargo Insurance
Marine cargo insurance covers transportation carried either by sea or by air. The goods are covered from any damages due to cargo loading/unloading, weather contingencies, piracies and other relevant issues. This policy can also be purchased to cover international transportation.
Land Cargo Insurance
Land cargo insurance provides coverage for all land transportations covering trucks and other utility vehicles. The coverage includes losses due to theft, collision damages, and many other related risks. This insurance is purchased domestically and is honored for any claims within US boundaries.