As a trucking or towing company operator, it’s important to have the right insurance coverage to protect your business in case of accidents or losses. Two key types of insurance for protecting property in your possession are cargo and on-hook coverage.
Here’s a side-by-side comparison of these two types of coverage:
Who and What is Covered?
Cargo Coverage: Protects the goods that are being transported in your truck or trailer. This can include client’s items such as equipment, merchandise, automobiles, and other cargo.
On-Hook Coverage: Covers damage to non-owned vehicles that you’re towing. This can include damage to the vehicles caused by an accident, theft, fire, or other covered losses. On-hook coverage applies while the vehicle is being towed, transported, loaded or unloaded.
What is Not Covered?
Both types of coverage do not cover damage to the insured’s own property, intentional acts, or losses caused by illegal activities.
Examples:
Cargo Coverage: Suppose your truck is transporting a load of expensive equipment, and it is stolen while parked overnight at a truck stop. Cargo coverage would help cover the cost of replacing the stolen equipment, up to the policy limits minus the deductible.
On-Hook Coverage: Suppose your towing company is hauling a customer’s car, and it becomes damaged during transport. On-hook coverage would help pay for the repairs or replacement of the damaged vehicle, up to the policy limits minus the deductible.
It is crucial for truckers and towing companies to protect against unforeseen events. For more information on what coverages you need, contact your trusted GIA agent who is always ready to help.