Do You Need Cargo Insurance for Dirt, Sand or Gravel?

Sand & Gravel Insurance Learning Center

Know Who Owns the Load Before You Haul It

Dirt, sand, gravel, aggregate, and similar materials may not always be owned by the hauling company. When a business transports property belonging to a customer, contractor, supplier, or other third party, cargo exposure can be different from delivering materials the business owns itself.

Whether cargo coverage matters can depend on who owns the material, who is responsible while it is in transit, what the hauling contract says, and what causes of loss the policy is designed to cover.

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Customer Loads

Hauling Your Own Material Is Different From Hauling Someone Else’s

The ownership of the load can affect what insurance exposure exists while the material is being transported.

Your Own Materials

Delivering Property the Business Owns

If the company owns the dirt, sand, gravel, aggregate, or other material it is delivering, the exposure may be treated differently from hauling customer-owned property for a fee.

The business should still review how its own materials are protected while in transit and whether any applicable business property or transportation coverage applies.

Customer-Owned Materials

Hauling Property Belonging to Others

When the company transports property owned by a customer or another party, motor truck cargo or similar coverage may become more important depending on the hauling arrangement.

The contract and policy should be reviewed to determine when responsibility for the load begins, when it ends, and what losses may be covered.

In-Transit Responsibility

What Can Happen to a Load During Transportation?

Even low-cost bulk materials can create financial exposure when a load is lost, contaminated, spilled, damaged, or otherwise cannot be delivered as expected.

Coverage can vary significantly by cargo type and policy. Businesses should not assume every load or every cause of loss is automatically covered.

Rollover or Collision

A truck accident may result in the loss or damage of customer-owned material being transported.

Spillage

Material may be lost from the truck during transportation, unloading, or an accident depending on the circumstances.

Contamination

A load may become contaminated or mixed with another material, potentially affecting whether it can still be delivered or used.

Delivery Disputes

Questions can arise over quantity, condition, responsibility, or when custody of the material transferred from one party to another.

Clarify the Load Responsibility

What Should a Sand and Gravel Hauler Review?

Before hauling for customers, understand whose property is being transported, the maximum value at risk, and what the hauling agreement expects the carrier to be responsible for.

Who Owns the Material?

Determine whether the load belongs to your business, the customer, a supplier, a contractor, or another party.

Maximum Load Value

Estimate the highest value of customer-owned material the company may transport in one vehicle or shipment.

Contract Requirements

Review hauling agreements for cargo insurance requirements, responsibility for loss, required limits, and other transportation obligations.

Policy Exclusions

Ask how the policy treats bulk commodities, spillage, contamination, loading and unloading, unattended vehicles, and other relevant exposures.

Responsibility should be clear before the truck leaves. Cargo coverage may be particularly important when your business is being paid to transport customer-owned material and could be held responsible for the load while it is in transit.

Protect More Than the Truck

Do You Haul Materials That Belong to Your Customers?

Best Formula Insurance can help sand and gravel businesses review Commercial Auto, cargo coverage, customer-load exposure, liability limits, dump truck operations, and other transportation insurance needs.

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Call (888) 242-9922

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