The motor truck cargo insurance marketplace includes a variety of different coverage types that meet the unique needs of truck drivers and transportation companies. Debris removal coverage is one of those lesser thought about coverage types, and it’s important for agents to familiarize themselves with it so that they can offer it to clients who would benefit from it. Let’s dive in and take an in-depth look at what debris removal coverage does.
What is Debris Removal Removal Coverage?
Debris removal coverage is a type of motor truck cargo insurance coverage that provides reimbursement for clean-up costs associated with damage to a property. It’s not new to the marketplace at all; in fact, it started as a type of property coverage in the 1940s in response to a controversy surrounding whether or not insurers should or shouldn’t cover debris removal costs after a fire loss. Some insurers included these costs as part of their claim settlements, while others rejected them, citing debris removal costs as not a direct result of a loss and thus not covered. To provide clarity and consistency, a debris removal clause was added to the forms attached to the standard fire policy, stating that the coverage would extend to include the cost of removal of debris resulting from the property loss.
Debris Removal in the Trucking Industry
When a truck is hauling cargo, there is always the risk of contents becoming loose during the trip or falling off of the truck completely. In many cases, when a truck loses its cargo in transit, it makes a huge mess on the roads. The party at fault (usually the driver or transportation company) is responsible for the cost of clean up. Without coverage for debris removal costs, this would have to paid for out of pocket, creating a big financial burden in an industry that already has slim profit margins.
Debris removal coverage typically has a cap on the amount of reimbursement that it can provide to a policyholder for debris removal and cleanup costs – typically around $25,000. If a cargo load is accidentally dumped onto a roadway or into a waterway debris removal coverage can pay for the cost to remove the debris and can sometimes, but not always, provide payment for extracting (certain) pollutants caused by the debris. Depending on the policy, however, pollutants or hazardous materials may be excluded and would require a separate policy to cover clean-up or other related expenses.
Considering the amount of responsibility transportation companies and drivers hold when they embark on a trip with someone else’s property, it’s essential to provide them with motor truck cargo insurance coverage options that can covers a variety of possible risks, including cargo liability and debris removal. Even the best methods of securing cargo can fail, so a comprehensive cargo insurance coverage policy is a perfect second line of defense against costly debris clean-up costs.
About American Team Managers Insurance Services
Founded in 1998 by Chris C. Michaels, American Team Managers Insurance Services (ATM) has provided wholesale and MGA services to more than 5,000 independent insurance agents throughout the United States. Our goal is to establish close, long-term relationships with our agency partners and insurance carriers and provide competitive products for the Exclusive and Non-Exclusive markets that we serve. For more information on our products and services, give us a call at (877) 671-7503 to speak to a representative.