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Trucking Insurance coverage has many different levels of coverage for the driver, truck, and cargo. The basic policy for cargo is usually called S.G. Policy or the Ships and Goods Policy. While this will cover damage and loss to the cargo caused by particular circumstances, further protection can be added to the policy by Institute Cargo Clauses (ICC).

The All Risks Clause is the highest level of cargo insurance coverage available. This offers protection for expenses and losses excluding those caused by delay in shipment or related to the type of cargo being transported. Any coverage above the S.G. Policy has to be added to the trucking insurance policy.

Wording on insurance policies can be hard for many people to understand. Documents related to the ICCs can be used in place of the S.G. Policy.

The document called Clause A is used in place of the All Risks Clause. Excluding some situations such as wear and tear, fault of operators, and loss in weight, expenses and losses to the cargo will be covered through Clause A.

What the ICC terms the With Average Clause would be Clause B. Coverage for expenses related to situations such as fire, earthquake, or lightning are obtained through this clause. Clause B is like Clause A except there is the addition of purposeful damage to cargo.

Clause C is that the ICC calls Free from Particular Average Clause. This clause is similar to Clause B except it does not cover earthquakes, lightning, or water damage.

When you are trying to determine the amount of insurance coverage that you need, make sure and research what your options are pertaining to cargo insurance. Talk with an insurance agent if you have any questions about what is the best type of coverage for your situation.