Transit Coverage

Designed for What's Inside


The broadest coverage is afforded by IM 7250 0404

The transportation form is designed to cover all cargo shipments during the policy term (i.e. annual) using one or more of the following modes of transportation:

  • Common or Contract Carriers (i.e. Truckers)
  • Railroads
  • Airlines
  • Owned Vehicles

Covered property consists of personal property that is described on the Schedule of Coverages and being shipped somewhere in the United States. Covered property can be property of the insured that is being shipped to the insured’s customer or to another of the insured’s locations. Covered property can also be property of others that the insured is legally liable for and that the insured is shipping. For example, the insured may be repairing a customer’s machine and then shipping the item back to the customer.

You can select alternate forms for specific coverage needs

  • IM 7251 0604 — The owner’s form is designed to cover all cargo shipments during the policy term (i.e. annual) that are shipped on the insured’s vehicles.
  • IM 7252 0604 — The trip transit form is designed for a specifically scheduled shipment of cargo via carriers for hire or the insured’s vehicles.
  • Debris Removal — Coverage for debris removal is limited to 25% of the amount paid for a loss. An additional limit of $5,000 is available when the expense exceeds 25% of the paid amount or when the combined loss to property and debris removal expense exceeds the limit for the damaged property.
  • Emergency Removal — This coverage extension provides coverage up to 365 days for covered property that is moved to prevent a loss.

Supplemental Coverages

The limit provided under a supplemental coverage is separate from, and not part of, the limit provided under Property Covered.

  • Pollutant Cleanup and Removal — Coverage is provided up to $10,000 for the expense to extract pollutants from land or water; the limit is an aggregate limit.
  • Property You Have Sold — IM 7250 and IM 7251 extend coverage to property that has already been sold by the insured and that the insured is shipping at the owner’s risk. Sold property is only covered if the owner of the property rejects the shipment because the property is damaged and the owner is refusing to pay for the shipment.
  • Rejected Shipments — IM 7250 and IM 7251 extend coverage to shipments that have been offered for delivered but have been rejected by the consignee and must be returned to the insured. The shipment is also covered while in storage awaiting return and during the return trip.

Valuation

  • IM 7250 — Under IM 7250, the value of covered property is based on actual cash value unless a shipping document spells out a different value for the property.
  • IM 7251 — Under IM 7251, the value of covered property is based on actual cash value.
  • IM 7252 — Trip Transit Policy - The value of covered property is based on actual cash value unless a shipping document spells out the value of the property.

Additional Coverage Extension

  • Consolidation And Packing — Coverage is provided for property that is at the premises of a contractor hired to pack and/or consolidate shipments.

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