Does fleet insurance cover cargo?

Cargo coverage usually requires a separate endorsement or policy, as standard fleet coverage focuses on vehicles and liability.

Fleet insurance is designed primarily to provide coverage for your vehicles and the liability that comes from using them. This type of insurance typically covers damages to the vehicles in the fleet, such as trucks or vans, and any damages the vehicles might cause to other parties. However, it does not usually include protection for the cargo carried within those vehicles. To ensure that your cargo is covered, you'll most likely need to purchase a separate policy or endorsement that specifically addresses cargo insurance. This additional coverage can protect you from losses or damages to goods being transported, whether they occur due to theft, accident, or other covered events. It's essential to understand what your fleet policy includes and to arrange for the proper coverage to avoid any unexpected gaps.

Imagine you own a small logistics company that transports goods across the country using your fleet of trucks. One day, one of your trucks is involved in an accident on the highway. The truck itself is covered by your fleet insurance policy, meaning the repairs to the vehicle will be taken care of. However, the expensive electronics that were being transported are damaged during the accident. If you only have standard fleet insurance, you may find yourself without coverage for the damaged goods, potentially leading to significant financial losses. Having a cargo insurance policy or endorsement in place would mean that the value of the electronics, minus any deductibles, would be covered as well.

If you're managing a fleet that regularly transports goods, it's crucial to assess the value and importance of those goods and obtain cargo insurance accordingly. Talk to your insurance provider to understand the options available and make sure to choose the coverage that best aligns with your business needs. By having a clear understanding and proper coverage, you can avoid unexpected financial setbacks and ensure that both your vehicles and their contents are protected. Always review your insurance policies periodically to make sure they keep pace with your business operations.