What is Motor Truck Cargo?

When it comes to shipping cargo, it’s best to expect the unexpected. After all, you need to be prepared for whatever comes your way when you're behind the wheel of a truck. And that’s where Motor Truck Cargo (MTC) insurance can help. This coverage is designed to protect shippers and motor carriers against the many perils of the road. 

MTC refers to the insurance that covers commodities transported by for-hire trucks. It provides coverage against any physical loss, damage, and theft that occurs while cargo is being loaded, unloaded, transported, or waiting for transit at a dock or terminal. 

What Does MTC Cover?

While some insurance policies will differ, MTC typically covers the following risks and losses associated with transporting cargo via trucks:

• Fire

• Collision

• Water damage

• Theft

• Equipment failure 

That said, some exceptions often include incidents associated with:

• Government action

• Military action

• War

• Nuclear hazards

It’s also important to note that some items are not covered under an MTC policy, such as precious stones, animals, and currency. 

Who Needs MTC Coverage?

MTC coverage is intended for those who haul cargo, such as shipping companies, freight forwarders, and trucking companies. Now, all carriers are required to have basic liability insurance, known as carrier liability, but because this kind of policy offers very limited coverage, it’s best to add on MTC for more comprehensive coverage. After all, it’s important to have because it protects them against liability should something happen to their customers’ cargo while under their care.

Falvey Insurance Group Coverage