You invest hundreds of thousands—sometimes millions—in your construction or agricultural machinery. Consequently, when that investment is on the road, most clients naturally assume it’s “insured.” However, the reality is that the carrier’s standard coverage is a trap that could cost you your entire cargo.
Indeed, at STT Logistics, we see this critical mistake far too often. Therefore, we want to debunk the myth and explain exactly why you need an All-Risk Cargo Insurance policy, and how we can help you secure it.
1. The Myth of the Carrier’s “Full Coverage”
The biggest misconception in heavy haul is that the trucking company’s liability policy is a comprehensive insurance policy. It’s not. Most heavy haul carriers only offer limited liability, which means:
- Low Maximum Limit: Carrier liability policies often have a maximum limit of only $\$100,000$ to $\$250,000$ for the entire truckload.
- Minimal or Per-Pound Value: In many cases, the payout bases itself on a minimal value per pound (which is negligible for large, light equipment) or the “Actual Cash Value” (depreciated value), not the full replacement cost.
The Problem: If you are shipping an $\$800,000$ excavator and the carrier’s policy maxes out at $\$100,000$, you must absorb the $\$700,000$ loss yourself
2. The “Act of God” Trap and Shared Negligence
Carrier liability policies have very broad exclusions. They are only obligated to pay for damages if it is proven to be the carrier’s pure negligence. Common exclusions that deny payment include:
- Acts of God: Damage resulting from severe weather, floods, or earthquakes.
- Inherent Vice: Damage caused by the way the cargo was designed or packed.
- War or Strikes: Events entirely outside of the carrier’s operational control.
The Bottom Line: In the event of a complex accident, the legal battle to prove carrier negligence can take years, all while your vital machinery remains out of commission and unusable.
3. The Only Real Solution: All-Risk Cargo Insurance
The only way to fully protect your investment, from the moment it is loaded until it is secured at its destination, is through a separate cargo insurance policy—known as an All-Risk policy.
- Covers Replacement Value: It pays out the full value you declare, not a depreciated or limited maximum amount. This ensures you can replace the equipment immediately.
- Fewer Exclusions: It covers virtually all causes of loss, including human error, improper handling, and accidental damage (subject to the policy terms).
- Fast Claims Process: Claims are usually more straightforward and paid out faster, allowing you to replace or repair your equipment without waiting for a lengthy legal battle to assign blame.
Conclusion: Your Trusted Broker is Your Risk Advisor
At STT Logistics, our role extends far beyond finding a truck; instead, we become your dedicated risk advisor. Our mission compels us to educate every client on the necessity of this coverage and, furthermore, to facilitate obtaining comprehensive All-Risk policies through our trusted insurance partners. Consequently, we ensure your assets receive proper protection.
Therefore, don’t gamble with your expensive equipment. Talk to us before your next move, and ensure your investment is secured the right way.
Contact STT Logistics today to discuss your next transportation project.
