Florida 2-20 General Lines Agent (Property, Casualty, Commercial Lines and Florida Law)Commercial LinesMedium
A Florida-based logistics company regularly transports high-value goods for various clients, including electronics and pharmaceuticals, using its own fleet of trucks. They are concerned about their financial responsibility if a loaded truck is involved in an accident and the client's goods are damaged. Which specific Inland Marine policy would cover the logistics company's legal liability for the cargo it transports?
- ATrip Transit Policy
- BShipper's Interest Cargo Policy
- CMotor Truck Cargo Policy (Carrier's Form)
- DWarehouse to Warehouse Clause
Show answer & explanationAnswer & explanation
Correct answer: C. Motor Truck Cargo Policy (Carrier's Form)
A Motor Truck Cargo Policy (Carrier's Form) is designed specifically to cover the legal liability of a common or contract carrier for loss or damage to cargo belonging to others while in their care, custody, or control. This directly addresses the logistics company's concern.
Why the other options are wrong
- A. A Trip Transit Policy covers a single, specific shipment for the owner, not the carrier's general liability.
- B. A Shipper's Interest Cargo Policy covers the owner of the goods, not the carrier's liability.
- D. Warehouse to Warehouse Clause extends coverage within a cargo policy, but it's not a standalone liability policy for the carrier.
Motor Truck Cargo Policy (Carrier's Form)
An Inland Marine insurance policy that covers the legal liability of a motor carrier for loss or damage to cargo belonging to others while it is being transported by the carrier's trucks.
- Covers carrier's legal liability.
- Applies to goods of others.
- Specific to motor truck transport.
Memory trick: Carrier's Burden: Responsible for Others' Goods