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You are required by law to carry cargo insurance on your freight; this kind of insurance offers vital protections for any freight brokerage or motor carrier. Here’s a look at three key factors that could help you to choose cargo insurance correctly.

Theft is the biggest threat

Whereas environmental issues and acts of God are not always fully covered in an insurance policy, you would do well to remember that theft is a much more common risk. “The increase in cargo theft is a major problem,” wrote Don Harrell, a senior vice president at Liberty International Underwriters, in an Insurance Journal article in 2012. “If you look at organized crime, there are some staggering statistics around the estimated total crime and retail losses on an annualized basis… Over 90 percent of retailers today, small, medium and large, are affected.”

Warehouse and distribution centers are the primary locations for cargo theft, even more than truck stops. Parking lots, terminals and terminal yards are also common sites of cargo theft. Obviously a cargo insurance policy needs very strong theft coverage.

Know your insurers and your policy

You want to partner with an insurance agent and company that you can trust. Take some time and research underwriters and insurance carriers. Find out what long-term experience they have had in the transportation insurance industry. Make sure your agent communicates all the terms of the policy to you and that you understand exactly what you are covered for.

Make sure lower rates still give good coverage and service

Be honest with your agent about your business. If you have had few insurance claims in recent times, you may be entitled to lower rates and possibly better coverage. Just be careful to check with your agent that if you get better rates, your coverage is still adequate for the type of freight you typically carry. There’s no point in getting better rates if it turns out that you can’t get loaded due to problems with your insurance!

Your cargo is precious and losing it without correct insurance coverage could be disastrous. For more tips for success in the trucking industry, visit the world’s largest free load board, It just takes a minute to register and motor carriers can start looking for loads and freight brokers can start posting loads right away at no charge.

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