When working with truck cargo insurance companies and trucking insurance underwriters, you may not always feel in the loop about contract specifications or about laws and regulations that apply to you and your business. Although many trucking insurance companies will review and highlight the details of your contract with you, it will be beneficial to you and your bottom line to possess a clear understanding and competence of truck cargo insurance legal and regulatory issues.

To ensure you are an informed professional and know more than just truck cargo insurance rates and trucking cargo accident benefits, consider the following laws and regulations for truck cargo insurance:

1. Be knowledgeable of what a bill of lading is, what it entails and how it applies to motor truck cargo insurance.

2. Be aware of what Title 49 United States Code 13906 is and its relevance to trucking cargo insurance.

3. Be informed when it comes to the BMC 32 Endorsement for Motor Common Carrier Policies of Insurance for Cargo Liability and the BMC 34 Certificate of Insurance as it pertains to commercial truck cargo insurance.

Action Steps
The best contacts and resources to help you get it done

Learn about a bill of lading and how it pertains to truck cargo insurance

Understanding bills of lading is critical to successful commercial trucking operations, as one must be obtained by the adjuster in a claim situation. It also specifies the liability of the carrier. Access online resources to attain a working knowledge of a bill of lading, its specifications and the ability to navigate and complete a bill of lading form.

I recommend: Read a concise description of a bill of lading at WiseGeek, and view a sample template at Microsoft Office Online.

Learn about Title 49 United States Code 13906 and how it relates to commercial trucking insurance

Clearly grasping Title 49 United States Code 13906 is essential to complying with owner operator cargo insurance laws and regulations. Doing so will ensure you and your personnel are legally operating within federal jurisdiction. You can read the entire text of the code as well as pertinent legal notes online and free of charge.

I recommend: Review the complete code text on the Justia website, and look over code notes provided by Cornell University Law School.

Learn about the BMC 32 Endorsement and BMC 34 Certificate in regards to commercial truck insurance

Established by Congress and the ICC, recognizing the importance and implications of BMC 32 and BMC 34 for semi truck insurance is necessary for all motor carriers. A provision to insurance contracts intended to safeguard those in the shipping business from losses, both the endorsement and certificate are required for common carriers. You can gain a better understanding of both BMC 32 and 34 by discussing the subject with truck cargo insurance providers or by utilizing the Internet and perusing information yourself.

I recommend: Browse a description of BMC 32 at the Logistics Management website and access the complete text of Title 49 Part 387.311 provided by the National Archives and Records Administration to understand why BMC 32 and BMC 34 are essential to truck cargo insurance.

In the trucking industry, protecting your cargo from damage or theft is your top priority, so commercial truck insurance is crucial to your line of business. Getting the right coverage is essential, and it may change depending on the nature of your business and the freight you haul. Finding a good trucking insurance company that will work with you and help you through these changes is vital to success.

When you shop for truck cargo insurance providers, there are a few qualities you need to evaluate and compare. Begin by looking at the company's history to get a good idea of how long it's been in business and what sort of services it offers. Also pay attention to:

1. Coverage levels, including details like whether the insurance covers the cargo while it's in the warehouse

2. Truck cargo insurance rates

3. Exclusions, or reasons why you wouldn't get paid for your cargo in the event of a problem

Action Steps
The best contacts and resources to help you get it done

Compare commercial truck insurance coverages

Similar to personal car insurance, semi truck insurance has different coverage levels and deductibles that vary depending on the amount that you're willing to pay for coverage. You want to make sure that your load is covered at full capacity and, if possible, find a company that will cover the shipment while it's in storage. This policy rider may make a huge difference if a shipment is delayed and damaged while in storage.

I recommend: Explore your options. Start by getting a quote from Western Truck Insurance Services and FM Global and compare the policies side by side. If you don't understand a particular coverage or section, don't hesitate to ask one of their agents for clarification.

Get quotes on truck cargo insurance rates

Once you have a better idea of what coverage you need, you can start shopping around for the best price. If you're flexible on the deductible amount, you can usually get the policy down to a price that you're comfortable with and still get the coverage that you need.

I recommend: Look at trucking insurance companies that are owned by other truckers. Companies like Owner Operator Direct and Trucker Services Association have competitive pricing because they understand your needs as the owner of a semi.

Choose a commercial truck cargo insurance company that's well respected

When you're buying insurance, it pays to go with a company that has a history of paying on time and taking care of its customers. Be wary of a new company that doesn't have a lot of experience in the field. Check out its history and ask how long it's been in business and what the claims procedure is like before committing.

I recommend: Give your business to truck cargo insurance companies that are well established. Progressive Commercial and JD Tanner Insurance are known in the industry for their customer service and long-standing history of success.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Before you purchase commercial trucking insurance, it's important to know what permits, if any, you need to operate legally in the state or states in which you'll be working.

Trucking cargo insurance is important to cover the liability of the goods that you carry. If you're new to the trucking industry, you may be confused by all the terms regarding trucking cargo insurance. Your insurance salesman may try to sell you a bobtail insurance plan or warehouseman's legal liability insurance. But do you need those? Look for companies that offer a flexible coverage plan to help you get exactly what you need. Start by learning these key terms.

Action Steps
The best contacts and resources to help you get it done

Flexible coverage

A company that provides flexible coverage doesn't have a one-size-fits-all insurance plan. They realize that just as every company is different, every insurance plan should be different as well. Your insurance plan should be designed to meet your specific needs.

I recommend: Learn more about flexible coverage for truck cargo at FM Global.

Claim

If you've been in an accident or your cargo was stolen or damaged, you'll need to file a claim with the insurance company. This is a request for money to cover the cost of replacement, as specified in the insurance policy.

I recommend: You can see how to file a claim at Owner Operator Direct.

Bobtail insurance

Bobtail insurance, sometimes called non-trucking liability is an add-on insurance policy for your truck. A trucking cargo policy only covers the cargo and you need insurance to cover the vehicle, driver or passengers. This is bought in addition to cargo insurance.

I recommend: Progressive Commercial offers bobtail insurance policies. Read their website to learn more.

Warehouseman's legal liability insurance

Sometimes, a company will hire a trucking company not just to transport goods, but to store them as well. If you are storing goods for a company, you'll also need to have warehouseman's legal liability insurance.

I recommend: Learn about this type of insurance policy from Capacity Coverage.

Ineligible commodities

When purchasing an insurance policy for the cargo that you carry, you have to consider what type of cargo it is. Some insurance policies may have a list of ineligible commodities, or goods that are not covered under the insurance plan.

I recommend: See examples of ineligible commodities from Zurich Insurance.

Truckers Service Association

The Truckers Service Association is a professional organization for truckers. It offers trucking cargo insurance policies to its members. Some truckers prefer to purchase insurance through organizations such as this because these associations understand the needs of truckers.

I recommend: Learn more about the Truckers Service Association from their website.