Insurance and risk
cargo insurance
Cargo insurance protects goods that a carrier hauls for others. Progressive Commercial describes motor truck cargo insurance as protecting goods and materials transported by for-hire truckers against events such as fire, collision and theft. It protects both the carrier and the cargo owner.
Why it matters
For a portable storage company, the main question is whether it hauls a customer's belongings. If a loaded container travels on the company's truck, a loss could involve the customer's contents. A common mistake is to assume cargo insurance covers a stationary container at a customer's home or in a yard. Cargo policies focus on goods in transit. Storage in a yard may need other coverage, such as inland marine. Policy wording, exclusions and limits vary. Operators should ask a licensed agent how the policy treats loaded containers, and customers should ask providers what protects their contents. This is not insurance advice.
Read: Insurance for portable storage companies: What coverage to ask about
Definition source: progressivecommercial.com
Related terms
inland marine insurance
Inland marine insurance is property coverage for items that move or sit away from a fixed location. NAIC says it covers property in transit, held by a bailee, at a fixed location, or movable goods often at different locations. Progressive describes it as coverage for tools, equipment and products stored away from your business.
contents coverage
Contents coverage is protection for the items stored inside a container. PODS explains two kinds of protection: contents protection covers the container and your contents against accidents, burglary and vandalism in listed settings, and container-only protection covers just the container. Terms and exclusions vary by company.
commercial auto insurance
Commercial auto insurance covers motor vehicles that a business owns or uses. NAIC defines it as coverage that protects the insured against financial loss from legal liability for motor vehicle injuries or damage to others' property caused by accidents tied to ownership, maintenance, use or care of a vehicle.
bailment
A bailment is a transfer of possession of property without a transfer of ownership. Cornell's Legal Information Institute defines it that way. The person who delivers the item is the bailor, and the person who receives it is the bailee. The bailee must usually return the item.
general liability insurance
General liability insurance is business coverage for claims of injury or property damage to other people. NAIC defines commercial general liability as flexible and broad commercial liability coverage with two major sub-lines: premises and operations, and products and completed operations. Policies differ in limits and exclusions.
certificate of insurance
A certificate of insurance is a document that summarizes an insurance policy and gives proof of coverage. GEICO says it shows the type of coverage, policy limits, effective dates and who is covered. It does not replace the actual policy or give coverage rights to the requester unless that person is an additional insured.
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