1. Forms
2. IH
3. IH-00-72

What the form is

The IH 00 72 Motor Truck Cargo Carriers Coverage Form is an insurance policy component offered by ISO that provides legal liability coverage for truckers and hauling companies. It is designed to protect carriers against financial loss if the cargo they are transporting for others is lost or damaged due to a covered cause of loss. Coverage typically begins when the carrier takes possession of the property for shipment and ends when the property is delivered to the consignee at the destination. This form operates on an open perils basis, meaning it covers direct physical loss or damage from any cause not specifically excluded in the policy.

Classes of business it applies to

This form is specifically for businesses engaged in transporting goods for others, including:

• Common Carriers: Trucking companies that offer their services to the general public to transport goods. For example, a freight company hauling various clients' merchandise.
• Contract Carriers: Trucking companies that haul goods for specific clients under a contractual agreement. For instance, a carrier exclusively transporting goods for a particular manufacturer.

The form covers the carrier's liability for the described property in their care, custody, or control during transit.

Special considerations

• Legal Liability Basis: It's crucial to understand that this form covers the carrier's legal liability for the cargo, not necessarily the full value of the cargo itself unless the carrier is legally liable for that amount. The extent of liability can be determined by bills of lading, shipping contracts, or applicable law.
• Covered Property: The specific types of property covered are typically described in the declarations page (IH DS 72). Certain commodities may be excluded or have specific limitations.
• Continuous Coverage: Coverage is usually written on a continuous basis, subject to annual re-rating.
• Earned Freight Charges: The form may also provide limited coverage (e.g., up to $2,500) for earned freight charges that the insured is unable to collect due to a covered loss to the cargo. This is in addition to the main cargo limit.

Key information for agents and underwriters

• Risk Assessment: Underwriters will carefully evaluate the types of cargo hauled (susceptibility to damage, theft, spoilage), routes traveled (high-crime areas, road conditions), loss history, driver experience and training, and security measures (alarms, tracking devices, yard security).
• Limits and Deductibles: Appropriate limits of insurance must be established based on the maximum value of cargo typically transported in a single shipment. Deductibles will apply per occurrence.
• Radius of Operations: The geographical area in which the carrier operates is a significant rating factor. Long-haul trucking may present different risks than local or regional transport.
• Contractual Agreements: Reviewing the carrier's contracts with shippers is important to understand the extent of liability assumed.
• Endorsements: Various endorsements may be available to modify coverage, such as those for specific commodities, refrigeration breakdown (for reefer cargo), or increased limits. The IH 99 11 Gross Receipts Reporting Form can be used to adjust premiums based on the carrier's revenue.
• Policy Structure: The IH 00 72 is part of a larger policy structure that includes common policy declarations (IL DS 00), common policy conditions (IL 00 17), commercial inland marine declarations (CM DS 02), commercial inland marine conditions (CM 00 01), and the specific motor truck cargo carriers declarations (IH DS 72).