The van is written off – and so is the load it was carrying. Casco settles the damage to the vehicle; but what about the goods? This is the most common coverage misunderstanding in the fleet world: cargo isn't part of the vehicle, it's a separate insurance world. This article draws the boundary – factually, from the fleet side.
- A vehicle's casco cover protects the vehicle – damage to the goods it's carrying is typically not its subject.
- The goods side has two main categories: carrier liability cover (for other people's goods) and freight insurance (for your own goods).
- Your own goods on your own vehicle: the most commonly uninsured gap – it calls for a conscious decision.
- It's worth knowing the coverage requirements in client contracts item by item – that's where the “who bears it?” question gets decided.
The boundary
The logic of vehicle cover is built around the vehicle: casco settles damage to the vehicle itself (and to its bodywork and accessories, where included in the sum insured). Goods in the load area are a different legal relationship: either they belong to the company, or to someone else the company is transporting for – and either way, it's a separate coverage question. The luggage element isn't the answer: that's limited cover for personal items, not for goods. So the first step is awareness: goods risk lives outside vehicle insurance.
Other people's goods: the world of carrier liability
Whoever carries someone else's goods is liable for them under transport law – both domestically and internationally, under whatever framework is in force (for international carriage, typically convention-based rules). Carrier liability cover exists precisely for this exposure, addressing goods damage caused in the course of carriage. This is a separate product world, with its own terms – and describing the activity precisely when requesting a quote (what, where, at what value) is just as fundamental here. The courier fleets article also touches on the typical questions for delivery fleets.
Your own goods: the quiet gap
Your own goods on your own vehicle is the most commonly uninsured gap: there's no carrier liability (a company isn't “liable” to itself), and no freight insurance either, because no one took it out. For low-value goods, this can be an acceptable risk – consciously taken; for regularly moving high-value goods, though, freight insurance is the orderly path. The vagyon.biz article gives a picture of the boundary between premises and in-transit property questions – the key point: someone should decide, and the decision should be written down.
Client requirements
In practice, the boundary is often drawn not by the company but by the client: haulage and supply contracts can contain coverage requirements – what insurance, up to what value limit, with what proof. It's worth knowing these requirements item by item and checking them against actual cover: a gap between the contractual commitment and the real cover surfaces at claim time – at the worst possible moment. During a fleet review, it's also worth going through the coverage clauses in haulage and client contracts – it's part of sorting out the portfolio.
Three clarifying questions before a haul
In practice, the cargo question can be reduced to three questions, and it's worth clarifying all three in writing. Whose goods are they during transport – your own, or the client's? What does the client contract require – specific cover, a value limit, proof? And: do the values being carried justify separate freight cover, or is the risk consciously acceptable as it stands? The answers differ from fleet to fleet – the point is that there are answers, and that they're not made up after a claim. During a review, these three questions always come up for haulage and delivery clients; the answers then go into writing, alongside the client contracts.
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