Texas General Lines — Property and CasualtyCommercial LinesHard
A client operates a trucking company that specializes in transporting high-value electronics across state lines. They are concerned about potential damage or theft of the cargo while it is in transit. Which Inland Marine coverage form would be most appropriate to cover this specific exposure?
- AMotor Truck Cargo Policy (Owners Form)
- BElectronic Data Processing Coverage
- CContractors Equipment Floater
- DAccounts Receivable Coverage
Show answer & explanationAnswer & explanation
Correct answer: A. Motor Truck Cargo Policy (Owners Form)
A Motor Truck Cargo Policy (Owners Form) is an Inland Marine coverage specifically designed to protect the owner of a trucking company against loss or damage to the cargo they are transporting for others, or their own cargo, while in transit. This directly addresses the concern of damage or theft of electronics while being transported.
Why the other options are wrong
- B. Electronic Data Processing coverage protects computer equipment and data, not physical goods being shipped.
- C. Contractors Equipment Floater covers tools and equipment used by contractors, not goods being transported for customers.
- D. Accounts Receivable covers losses when records are damaged, not physical cargo in transit.
Motor Truck Cargo Policy (Owners Form)
An Inland Marine policy that covers the insured's legal liability for loss or damage to cargo belonging to others while being transported by the insured's trucks, or the insured's own cargo if specified.
- Covers cargo in transit by truck.
- Can be for common carriers, contract carriers, or private carriers.
- Often covers perils like fire, collision, overturn, theft.
Memory trick: Inland Marine covers 'MAPS' of movable property.