Transportation Insurance

How We Ensure the Movement of Goods with Transportation Insurance

A huge part of our economy revolves around the movement of goods. Trucks run all over the city delivering goods to our stores, homes, and to and from train terminals for shipping by rail and roads, importing and exporting consumer, commercial, and industrial goods.

With the constant risks of theft, shipping damage, and the many laws and regulations involved, Transportation Insurance is essential to protect everyone involved in the shipping process. A good insurance program ensures protection for the seller of the goods, the purchaser, and the motor carriers involved.

Legal Terms:

To properly cover goods, it’s important to understand some basic terms related to Transportation Insurance:

• Bill of Lading: This document describes who is responsible for the goods being shipped, including which party must carry insurance. Those moving goods often limit their responsibility to less than full value.

• Care, Custody, and Control: Refers to the responsibility of the person or entity in physical possession of the goods.

• Hold Harmless: An agreement that limits or restricts someone’s responsibility.

• Custom Bonding: Goods crossing borders—whether for import or export—may require time while duties and taxes are calculated and collected by governments.

At any given time, the buyer, the seller, or the shipper may be liable for any loss or damage during transit. Transportation Insurance transfers this responsibility to an insurer, providing financial protection through various policies. One common exclusion to note is Inherent Vice, where the loss is caused by the nature of the item itself, such as fruit that spoils.

Considerations:

When designing your Transportation Insurance policy, consider the following:

• Is this a one-time or regular shipment?
• Will international laws and regulations apply?
• Is the shipper’s coverage sufficient?
• What is being shipped?
• Are high-value items or hazardous goods involved?

Common Policies:

Here are some policies typically included under Transportation Insurance:

• Warehouseman’s Legal Liability: Covers the storage of other people’s goods.
• Customs and Excise Bonds: Guarantees to the government that taxes and duties will be paid.
• Motor Cargo Policy: Property coverage for shippers moving goods for others.
• Marine Cargo Policy: Coverage for goods transported on open ocean waters.
• Trip Transit Insurance: Designed for owners of goods shipping on a semi-regular basis with various carriers. This can often be added to a comprehensive commercial policy.
• Vehicle Insurance: Ensures vehicles are rated for the correct delivery use. Larger commercial delivery policies are more detailed, addressing factors like travel distance, class of goods, and whether the delivery involves your own goods or others’.
• Liability Coverage: Protects against legal responsibility for goods and covers negligence in shipping, such as mishandling customs clearance, releasing cargo to the wrong party, or forwarding goods to an incorrect destination.

At AMC, we specialize in providing tailored Transportation Insurance solutions to protect your goods or those of others. Whether you need coverage for regular shipments, high-value items, or any other commercial insurance needs, our expert agents are here to help. Learn more about our Commercial Insurance services today!