Difference Between Cargo & Contingent

There is a difference between contingent cargo and cargo liability insurance coverage. It is important to know the difference.

Contingent Cargo is protection for the freight broker not the shipper. Never assume that contingent cargo will cover your goods in the event of a claim. In the event that a trucking company determines a claim to be invalid, contingent cargo will probably not cover the claim. Contingent cargo usually only applies when the carriers cargo insurance is defunct. If a carrier refuses the claim shippers should attain counsel.

Cargo Insurance is for the protections of the cargo. Motor carrier and freight forwarders are required to carry a minimum of $100,000.00. The policy covers the trucking company if it is legally liable for the damages and other losses of the customer’s property being shipped.

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