$250,000 cargo policy -- worth $650 extra?

Discussion in 'Ask An Owner Operator' started by double yellow, May 21, 2015.

Is a $250,000 cargo policy worth the extra $650/year?

  1. yes

    5 vote(s)
    50.0%
  2. no

    5 vote(s)
    50.0%
  1. double yellow

    double yellow Road Train Member

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    It is almost time to renew my insurance policy and I'm thinking about upgrading. I am leaning toward adding $1,000,000 General Liability (an extra $400/year), but with rates what they are I'm hesitant to upgrade my cargo from $100,000.

    Part of me wants to increase coverage in hopes of being able to offer a service that might be hard to find in the general spot market (especially when combined with tanker, twic, fast, <10 year old van, etc). And part of me wants to horde cash in case rates fail to rebound (or worse).

    Thoughts?
     
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  3. Big Don

    Big Don "Old Fart"

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    OK, I was never an O/O, but you did ask for thoughts. I'd like to know what O/O's think about this, but it seems to me like 250K for cargo insurance is a little short on the coverage side. Unless you are going to make sure you limit the value of the loads you haul.
     
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  4. double yellow

    double yellow Road Train Member

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    Seems so to me too -- trucking insurance in general hasn't kept up with inflation which is probably why I'm seeing more and more customers "requiring" additional coverage. I put that in quotes because when they need to move a load, they'll usually waive the requirement and once you start hauling for them they let you continue...

    (not that automotive insurance has kept up with inflation either -- $15,000 injury coverage? That might take care of an ambulance trip & broken bone...)
     
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  5. afterburn25

    afterburn25 Medium Load Member

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    No 250k for cargo is not short federal regulation is actually 75k cargo and 1,000,000 liability but you cant haul for 75k cargo even though its federal min brokers require min of 100k.
    to answer the posters question it depends it may not even be worth paying the extra on the hopes you can find the freight that requires over 100k cargo. research loads find out which loads require higher cargo and see how often you can move that type of freight and how much more the rates are for it. no point in paying for something you cant make your money back on.
     
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  6. ReeferOhio

    ReeferOhio Medium Load Member

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    I have a customer I move cooper for, I carry it only for that reason (they require it plus GPS units and direct phone line to the driver). I've yet to have another customer ask for it. I guess if people are asking for it or you have turned loads down because of the lack of coverage then maybe, but without either of those I'd leave it alone and offer it as needed.
     
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  7. SHO-TYME

    SHO-TYME Road Train Member

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    Actually, Liability minimum is $750,000 unless you haul vehicles, than it's $1,000,000.
     
  8. gokiddogo

    gokiddogo Road Train Member

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    Just get the slightly higher coverage ... The 9 mpg truck can't spare $1,000 over the course of a year? ....
     
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  9. icsheeple

    icsheeple Trailing the Herd

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    I'd pay for the extra coverage. Your talking about a grand total right? For an extra $12 a year I have an upgraded auto policy on my personal car. Feels insane to roll with minimum coverage in today's litigious society.
     
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  10. double yellow

    double yellow Road Train Member

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    You might be right. I keep going back to last winter & fall where I kept running into good-paying shippers wanting a <10 year-old trailer, so early this year I went out and bought a brand new trailer expecting to service that market. Since then I have come across exactly 0 loads that required it so now I'm kinda regretting the purchase (even though it is in large part responsible for that 9mpg).


    PS I wouldn't exactly be spreading $1,000 out over the course of a year -- I'd be paying it all upfront (total coverage, AA-rated, $1,000,000 auto, $1,000,000 GL, & $250,000 cargo = $8,700 paid at once vs $10,250/year if paid in installments)
     
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  11. Long FLD

    Long FLD Road Train Member

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    If it were me I'd do it. The cost is minimal to up your limit and it could open up some doors in the future. I used to carry 100k and as the cattle market has went up the last couple years I've had to raise mine twice to keep up with the value of the load.
     
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  12. Cluck Cluck

    Cluck Cluck LTL Wizard

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    $2.73/a day increase for $250,000 insurance? Better not. That's one less soda you can buy a day
     
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