Any time goods and products leave your business’s home base of operations, they may be at greater risk of being lost or damaged. It can be challenging to replicate your company’s security and safety measures while property is in transit, and even loading and unloading cargo could involve inherent risks and exposures. Theft is a particularly prevalent threat for which your business must account, as many criminals may prey on goods being transported between sites. Fortunately, the right cargo insurance can establish a stout defense against the financial ramifications of these incidents.

What Is Cargo Insurance?

These policies offer specialized property insurance for goods as they are moved, such as between a manufacturer and distributor. Regardless of exactly where in a supply chain your business may operate, being involved in transporting goods requires you to understand and retain appropriate cargo coverage. By doing so, you can file a claim following various incidents involving your freight, including theft.

How Does My Policy Address Stolen Goods?

Theft may occur at many points throughout the transportation process. Consider the following situations and how the right coverage may be critical in addressing losses:

• While loading freight, a perpetrator sneaks into your business and makes off with several palettes of materials.

• As one of your drivers takes a break at a truck stop, a criminal manages to break into their vehicle and make off with its cargo.

• In addition to covering your own business’s losses regarding stolen goods, cargo insurance may also help cover liabilities and legal expenses should you be at fault for another party’s property being taken.

Are There Limitations and Exclusions?

Your company should be aware that some types of goods, such as live animals, restricted substances and certain valuables (e.g., jewelry, precious stones and fine art), may be expressly excluded from cargo insurance policies. Additionally, this type of insurance should not be considered synonymous with inland marine insurance, which may offer broader coverage and financially protect goods and materials stored at off-site locations instead of only while in transit.

We’re Here to Help

Contact the Elliott-Hartman Agency in Waterloo, Iowa, today to learn more about protecting your cargo from theft and other incidents or to get a free quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.