1. Forms
2. IH
3. IH-00-76

What the form is

The IH 00 76 Motor Truck Cargo Owners Coverage Form is an Insurance Services Office (ISO) form designed to provide direct coverage for an insured's own goods and merchandise while being transported on their own vehicles. Unlike motor truck cargo carriers forms, which cover the carrier's legal liability for damage to goods they are hauling for others, this form covers the direct physical loss or damage to the property owned by the named insured. Coverage typically applies from the point of origin until the property reaches its final destination.

Classes of business it applies to

This form is suitable for any business that transports its own goods in its own vehicles. Examples include:

• Manufacturers delivering their finished products to customers or distribution centers.
• Wholesalers and distributors transporting inventory between warehouses or to retail locations.
• Retailers moving stock between their own stores.
• Contractors carrying their own tools, equipment, and materials to job sites (though specialized contractor's equipment floaters might also be applicable or more appropriate for tools and equipment).
• Farms transporting their own produce or livestock.

For instance, a furniture manufacturer that uses its own trucks to deliver sofas and tables to local customers would use this form to insure those goods against damage during transit.

Special considerations

Important points to consider when using this form:

• Direct Damage vs. Legal Liability: It's crucial to distinguish this owners form from a carriers form. If the insured is hauling goods for others (acting as a common or contract carrier), the IH 00 72 Motor Truck Cargo Carriers Coverage Form would be more appropriate.
• Covered Property: The declarations page (IH DS 76) will describe the covered property. It's important that this description accurately reflects the types of goods being transported.
• Valuation: The basis of valuation for lost or damaged goods (e.g., actual cash value, replacement cost, or selling price) should be clearly understood and may require specific endorsements.
• Exclusions: Typical exclusions might involve gradual deterioration, wear and tear, infidelity of employees, or loss due to unattended vehicles unless specific precautions are taken (an endorsement like IH 99 23 Theft from Unattended Vehicle Exclusion might be relevant).
• Reporting vs. Non-Reporting: The form can be written on a continuous basis subject to annual re-rating. For businesses with fluctuating values of goods in transit, a reporting form endorsement (like IH 99 09 Values Shipped Reporting Form) might be necessary to adjust premiums and coverage limits based on reported values.

Key information for agents and underwriters

• Risk Assessment: Underwriters will assess the nature of the goods being transported (susceptibility to damage, theft potential), the geographic areas of operation, the condition and security of the vehicles, loss history, and driver experience.
• Limits of Insurance: Adequate limits should be established to cover the maximum value of goods in any one vehicle or conveyance. Underwriters will scrutinize the requested limits in relation to the described property.
• Deductibles: A deductible will apply to each loss, and the selection of an appropriate deductible can impact the premium.
• Underwriting Considerations: The principal type of property being hauled is a key factor; if it differs significantly from what is stated on the declarations, coverage could be jeopardized. The form is usually written on a continuous basis and re-rated annually.
• Policy Construction: The IH 00 76 is part of a larger policy and is typically used in conjunction with forms like the 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 Motor Truck Cargo Owners Declarations (IH DS 76).