CONTINGENT CARGO COVERAGE
1. INSURING CLAUSE:
This policy covers direct physical loss or damage, caused by the Covered Perils set forth in
paragraph 2, to Covered Property for which the assured (transportation broker) has contracted to
effect delivery between points and places within the Continental United States and Canada, but
only while the property is in or on a vehicle in the due course of transit and in the physical custody
of a motor carrier directly engaged by the assured. The coverage afforded herein does not attach
in the absence of full compliance with the warranties set forth below in paragraph 7.
This policy does not extend any coverage for costs associated with the clean-up or removal of
any Covered Property after a Covered Peril has occurred.
2. COVERED PERILS:
A) Fire, lightning, windstorm, flood (meaning the rising of natural or manmade bodies of water)
B) Accidental collision of the transporting vehicle with any object
C) Overturn of the transporting vehicle
D) Collapse of bridges, docks or culverts
E) Perils of the seas, lakes, rivers, or inland waters while the transporting vehicle is on a ferry,
including general average and salvage charges for which the cargo owner is responsible.
F) Theft of an entire shipping package excluding:
i) all pilferage
ii) theft and/or infidelity by any person or persons in the motor carrier or the assured’s
service or employment, including independent contractors, his or their servants, agents
or employees, whether or not it occurs during the hours of employment;
iii) theft and/or infidelity by any person or person entrusted with the Covered Property
3. EXCLUSIONS FROM COVERED PERILS
In the event of a Covered Peril, this policy will not apply if the Covered Peril:
A: Is caused by, contributed to by, or results from:
i) Hostile or Warlike action in time of peace or war, including action in hindering, combating
or defending against an actual, impending or expected attack by
a) any government or sovereign power (de jure or de facts)
b) any authority maintaining or using military, naval or air forces; or
ii) Any weapon or war employing atomic fission or radioactive force whether in time of
peace or war; or
iii) Insurrection, rebellion, revolution, civil war, usurped power, or action taken by
governmental authority in hindering, combating or defending against such an
occurrence, seizure or destruction under quarantine or customs regulation, confiscation
by order of any government or public authority, or risks of contraband or illegal
transportation or trade
B: Is caused by, contributed to by, or results from:
i) Any act of “Terrorism”; or
ii) Any action authorized by a governmental authority or agency for the purpose of
preventing, terminating, countering or responding to any act of terrorism or for the
purpose of preventing or minimizing the consequences of any act or threat of terrorism.
An act of “terrorism” means an activity that involves any violent act, including the threat of an
activity or preparation for any activity, that:
Causes either damage to property or injury to person(s) and
Appears to be intended to Intimidate or coerce a civilian population; or disrupt any segment
of an economy; or influence the policy of a government by intimidation or coercion; or affect
the conduct of a government by destruction, assassination, kidnapping or hostage-taking; or
advance a political, religious or ideological cause.
An act of “Terrorism” shall also include any incident determined to be such by an official,
department or agency that has been specifically authorized by federal statute to make such a
These exclusions applies regardless of whether there is: (a) any physical loss or damage to
insured property; (b) any insured peril or cause whether or not contributing concurrently or in
any sequence; (c) any loss of use, occupancy or functionality; or (d) any action required,
including but not limited to, repair, replacement, removal, cleanup, abatement, disposal,
relocation, or steps taken to address medical or legal concerns.
C. If the Insured has neglected to use all reasonable means to save and preserve the property
at and after any disaster insured against, or when the property is endangered by fire in
4. COVERED PROPERTY
Lawful goods and merchandise not otherwise excluded in paragraph 5.
5. PROPERTY NOT COVERED
i) Accounts, bills, currency, deeds, evidence of debts, money, notes, securities
ii) Shipments that have been either refused or are returned by the receiver thereof
iv) Risks by parcel post or mail
v) Covered Property which is shipped in vehicles owned, leased or operated by the assured or
a subsidiary, division or associate company of the assured.
vi) Covered Property which has been held at any one location, whether in the due course of
transit or not, in excess of 72 hours.
The goods insured herein shall be valued at the least of the following:
vii) Actual cash value of the goods at the time and place of origin of the transportation.
viii) The limit of the motor carrier’s motor truck cargo insurance, whether collectible or not.
ix) The legal liability of the motor carrier.
x) The limit of insurance provided on the Declarations Page of this Policy.
The Assured warrants the following:
1. Assured will obtain and keep on file in his office at all times a current Certificate of
Motor Truck Cargo Insurance for any motor carrier engaged by the assured to perform
transportation or related services. The certificate must verify coverage limits in an
amount not less then the limits set forth in the Declarations Page of this policy.
2. Assured will obtain and keep on file in his office at all times a current copy of the
operating authority for any motor carrier engaged by the assured to perform
transportation or related services which are regulated by any federal or state agency.
3. Assured will undertake all reasonable efforts to obtain recovery from the motor carrier
and its insurer. Reasonable efforts include presentation of a written claim to the
motor carrier and its insurer within the time limit of the contract of carriage.
The failure to comply with any of the warranties set forth above will void coverage
under this policy.
In consideration of the premium charged, each claim for loss or damage shall be adjusted
separately in accordance with the valuations set forth in paragraph 6 and from each such
adjusted claim, the amount of $ shall be deducted.
9. OTHER INSURANCE
It is expressly agreed that the limit afforded under this policy shall be excess over any other valid
and collectible insurance, whether prior or subsequent hereto in date, and regardless of by whom
the policy was purchased, directly or indirectly covering the same property.
10. IMPAIRMENT OF RECOVERY AND SUBROGATION
In all cases of loss the Assured shall, at the request of the Insurer or his Agents, assign and
subrogate to the Insurer at time of payment and to an amount not exceeding the sum paid by the
Insurer, all their rights and claims against others and permit suit to be brought in the Assured’s
name, but at the Insurer’s expense; the Assured further agrees to render all reasonable
assistance in the prosecution of said suit or suits.
Assured agrees that all recovery against a third party shall accrue to Insurer until all sums paid by
the Insurer have been recovered.
Any act or omission of the Assured, whether prior or subsequent to an occurrence covered by this
policy, which impairs the right of the Assured to recover from any party liable for the loss shall
render this policy null and void, but the Insurer’s right to retain or recover the premium shall not
be effected. If the Assured agrees to a limitation of the motor carrier’s liability, coverage will be
limited as set forth in paragraph 6. This Company is not liable for any loss or damage which,
without its consent, has been settled or compromised by the Assured.