Owner operators and small fleet owners rarely take advantage of their right to limit cargo liability. Many participants in interstate trucking don't realize that an insurance policy is not the only way they can protect themselves from the financial loss associated with a cargo claim.

Many owner operators and small fleet owners purchase their cargo policy, feel a $100 thousand policy is adequate, and move on to the next of the innumerable requirements for getting their company legal to operate as an authorized interstate carrier.

Cargo loss is an inherent risk of trucking. Given time an accident, rollover, securing error, theft, miscount, or one of many other possible incidents will eventually result in a cargo claim. Carriers are left with the burden of liability in most cargo loss situations.

Insurance is a tool available to carrier's and owner operators to assist in the minimization of financial exposure from cargo loss. An insurance company is not liable beyond the agreement as established within the written cargo insurance policy.

What if your trailer is stolen from a truck stop where you parked it over night? What if your driver doesn't set his refer unit to the proper temperature and a load spoils? Most cargo insurance policies have a hefty amount of fine print listing exclusions that nullify the payout of the policy. Do you know your policy's exemptions?

More importantly, if a claim occurs and your policy doesn't cover it, are you prepared to dole the money out from your own pocket if you are legally liable under the law? One cargo claim that is not covered by your policy can drive most small carriers or owner operators into bankruptcy.

Carriers too frequently haul high value cargo not even knowing the value of the goods they are loading. If a shipper does not declare the value and there is a loss exceeding the policy coverage the carrier will be ultimately liable for the difference of the loss, and in some instances the mere fact that the carrier is hauling goods in excess of their policy limits will null and void the policy before the insurer pays a dime.

Because of the intrinsic risks that come with trucking the U.S. Government has given carriers another tool for carriers to reduce risk with the hope that more carriers will participate in the industry, thereby increasing the competitive nature of health of trucking commerce. That tool is contained within the Carmack Amendment (U.S. Code: Title 49, 14706) which

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