Know Everything About Carrier Liability Insurance Before Meeting an Agent

Carrier Liability Insurance

Your transit business involves a lot of risk factors that need to be covered in an insurance policy. According to the type of vehicles and their use, insurance agents prefer different types of policies to their customers. If your business is relevant to goods transportation, we recommend going with the option of carrier liability insurance. Basically, this insurance is designed to cover the policyholder from legal liabilities of damage or loss. Whether it is an accidental collision, fire outbreak or calamity, you will get adequate coverage. This insurance policy compensates a person if physical destruction occurs during the loading, transit and unloading process. Let’s elaborate on this insurance in detail. 

Table of Contents

Scope of coverages

A carrier liability insurance is meant for covering multiple risks during the transit. Here is the list you need to remember while interacting with an insurance agent. 

  1. Lost freight in connection and damage caused to the cargo resulting in financial loss. 
  2. If mishandling causes breakage during loading and unloading.
  3. Damage caused due to the direct explosion, fire or accident. 
  4. Flood and water damage. 
  5. Damage caused by other cargo being carried during the transit. 
  6. Litigation against claimants.
  7. Average adjusters cost.

Consider the exclusions

  1. You will not get damage or loss coverage beyond the insurance period. 
  2. The insurance agency is not liable for the loss due to confiscation. 
  3. Rejection from government authorities. 
  4. Vandalism or terrorism acts. 
  5. If illegal goods are being smuggled. 
  6. Malfunctioning vehicle selected for transit. 

How to finalize a carrier liability insurance policy? 

1. Find a referral

If you are running a transit business, there must be several people in the contact list who are already consuming the benefits of carrier liability insurance. On the behalf of their experiences, you can choose a suitable agency. 

2. Make use of policy comparison websites

Still, personal satisfaction is necessary before trusting someone. There are policy comparison websites where you can figure out the most feasible insurance from the perspective of cost and coverages. Select the leading insurance companies providing the coverage of carrier liability and compare their services. It will help in shortlisting some reliable contacts. 

3.  Book a consultation session

All genuine insurance agencies provide free consultation sessions and online quotes. Book a session with an insurance agent for gaining complete knowledge about the insurance factors. Make sure that they are capable of understanding your issues and provide tailored solutions instead of forcefully trying to sell their product. 

4. Understand coverages and exclusions carefully

Ask them to educate you with all types of coverages and exclusions in detail. Factors like geographical conditions, climatic conditions and transit type play a crucial role in deciding the premium amount of insurance. Also, it is not a minor investment. Before putting your money on safety and security concerns, it is important to know that the purpose will be served when actually needed. 

If your expected coverages are in their exclusion list, there is no purpose of buying that insurance policy. Gain some information about their claims processing service whether it is smooth or unnecessarily time-consuming.