GSIS

Excess Cargo Insurance Freight ASAP

In some instances, a standard insurance policy on cargo may not be enough to completely cover the load if it were damaged. As a result, many insurance carriers offer excess cargo insurance to help bridge the gap between what the original policy offered and the actual value of the loss at hand.

An excess cargo policy is used only when the loss on the original policy exceeds its limits. It is considered to be a “follow form”, which means the languages and terms in this rider basically stay the same as the policy on which it sits upon. As a result, an excess cargo policy should be rather straightforward and easy to understand.

One of these policies could be needed when hauling loads that are valued at over $100,000. An excess cargo policy can typically cover loads valued at up to $1 million, although some may provide coverage for up to $10 million. A policy could also cover a number of other things besides cargo, including the removal of debris, cleanup of pollution after a cargo spill, and loss of income. The cargo itself could be covered a number of ways including:

• Physical damage
• Physical loss, i.e. theft
• Perishing due to equipment breakdown.

 

Excess cargo insurance is not intended for those who routinely carry high value loads. These individuals may want to consider a high value trip transit cargo policy instead, as this type of policy will cover up to 50 high dollar value loads per month. By insuring that each load is covered by the right policy, worrying about the loss of expensive cargo will no longer be a source of worry.