Question about cargo insurance.

[coolbreeze]

What is the general limit to how much cargo coverage an independant carrier would need to haul loads?
Thanks in advance.

$100,000

[traveler15301]

that $100,000 might be the legal minimum but most companies with which I am familiar carry more...usually around $500k or even $1M

[yoopr]

It all depends on what you're hauling on what you should have for Cargo Insurance.

[brian]

my coverage is 2 million, I dont really get close to that amount but I do get the occasional piece of equipment slightly over 1 million, at least with my insurance company there wasn`t many policies between the 1 and 2 million dollar mark.

I've already signed on as an approved carrier for most of the big name compaines and they all required just $100,000 and some only $750,000. So far, 27 companies and no problems with my 100k.

[larryh31]

It would be a good idea to have more than the minimum required by law. If you roll your truck with 250K worth of cargo inside you will be liable for the amount that your insurance does not cover. Possibly losing your house, car, etc.

[yoopr]

It would be a good idea to have more than the minimum required by law. If you roll your truck with 250K worth of cargo inside you will be liable for the amount that your insurance does not cover. Possibly losing your house, car, etc.

100% right but some people don't understand that
I don't ever remember hauling a load where $100k would cover loss.

[Uturn2001]

It all depend on what you are hauling. There are shippers that will not allow you to haul their cargo unless you have enough insurance.

[Mackman]

It would be a good idea to have more than the minimum required by law. If you roll your truck with 250K worth of cargo inside you will be liable for the amount that your insurance does not cover. Possibly losing your house, car, etc.

If you are INC. or LLC. can they still come after you personally. I thought they just go after the company????

[kc0iv]

If you are INC. or LLC. can they still come after you personally. I thought they just go after the company????

Creative lawyers can do very creative things.

Best to have good insurance.

kc0iv

[Skipper]

If you are INC. or LLC. can they still come after you personally. I thought they just go after the company????

Hello Mackman, I was advised that if the party pursuing the legal action can prove that you are a sole proprietor set up as an LLC or corporation that they can try to come after your personal assets. It's called 'piercing the corporate veil' or something to that effect.

Keep in mind that I live in Pa and it may be different in your state. Also, I'm not a lawyer. This was legal advice I received from a lawyer.

Rich

[traveler15301]

If you are INC. or LLC. can they still come after you personally. I thought they just go after the company????

Hello Mackman, I was advised that if the party pursuing the legal action can prove that you are a sole proprietor set up as an LLC or corporation that they can try to come after your personal assets. It's called 'piercing the corporate veil' or something to that effect.

Keep in mind that I live in Pa and it may be different in your state. Also, I'm not a lawyer. This was legal advice I received from a lawyer.

Rich

'tis true unfortunately...there are numerous ways to "pierce the corporate veil" with new ones possibly arising with every court decision....

best bet=have enough....how much is enough? TOO much is never enough if you get sued...ah but there's the rub.....

too many people see a big truck...figger hey, they got plenty 'o that ole "een-sew-ance" and some ambulans chasin looy-yer can getim some caaash!!!!
so, split the difference get plenty (but not too much) and pray for good luck...(and don't tell any of your lawyer friends you drive truck...they might give their business cards to your neighbours!!!)

another rub to it....
I drove for an O/O who ran his own authority but was also signed on to a major carrier....he carried $250k or maybe $500 I forget, of his own cargo...but the carrier had $500k of their own....was he double insured? YEP...was he maybe over-insured and wasting some money? Darn tootin....

BUT he slept well at night!!! and still made money!

[yoopr]

If you are INC. or LLC. can they still come after you personally. I thought they just go after the company????

Hello Mackman, I was advised that if the party pursuing the legal action can prove that you are a sole proprietor set up as an LLC or corporation that they can try to come after your personal assets. It's called 'piercing the corporate veil' or something to that effect.

Keep in mind that I live in Pa and it may be different in your state. Also, I'm not a lawyer. This was legal advice I received from a lawyer.

Rich

'tis true unfortunately...there are numerous ways to "pierce the corporate veil" with new ones possibly arising with every court decision....

best bet=have enough....how much is enough? TOO much is never enough if you get sued...ah but there's the rub.....

too many people see a big truck...figger hey, they got plenty 'o that ole "een-sew-ance" and some ambulans chasin looy-yer can getim some caaash!!!!
so, split the difference get plenty (but not too much) and pray for good luck...(and don't tell any of your lawyer friends you drive truck...they might give their business cards to your neighbours!!!)

another rub to it....
I drove for an O/O who ran his own authority but was also signed on to a major carrier....he carried $250k or maybe $500 I forget, of his own cargo...but the carrier had $500k of their own....was he double insured? YEP...was he maybe over-insured and wasting some money? Darn tootin....

BUT he slept well at night!!! and still made money!

Insurance is cheap compared to what you can lose.

[GMAN]

I think that there is some confusion about liability and cargo. The minimum legal limits are $750,000 in liability and $5,000 for cargo. However, most shippers and/or brokers will require $100,000 in cargo. A few may require more. When I hauled cars I had $250,000 in cargo. I carry $1MM in liability and $100M in cargo. You may be required to have higher limits if you haul hazardous materials or some other shipments. I have hauled cargo well in excess of the $100,000 but sometimes the shipper will take care of the difference in coverage. However, I would not count on it. If you run into a load which requires additional coverage, there are companies who can write you additional coverage for a single load. Unless you need the higher coverage, there is no need to carry it. And $1MM in liability should be adequate for most trucking operations unless you get into some specialty hauling.

[Rev.Vassago]

I've already signed on as an approved carrier for most of the big name compaines and they all required just $100,000 and some only $750,000. So far, 27 companies and no problems with my 100k.

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