If you are running a trucking or logistics company and you are operating within Europe then you must have heard about CMR insurance.
Trucking and logistics companies have to cover many different types of insurance, yet unlike other insurance policies the CMR insurance is a must have. More precisely, the CMR insurance represents a specific insurance cover that enables trucking and logistics companies to legally transport cargo within Europe.
So, let’s find out what CMR insurance is and how does CMR insurance applies to transportation operations.
Take a read!
What is CMR insurance?
The CMR insurance is the cover that ensures truck drivers and carriers to legally transport cargo in countries in which the CMR Convention applies.
Whereas, the CMR Convention or the Convention on the Contract for the International Carriage of Goods by Road is a law that has been ratified by 55 European states.
Thereupon, all truck drivers and carriers that are transporting cargo within Europe have to get a CMR Insurance.
CMR Insurance VS Goods In Transit Insurance
Both the CMR Insurance and Goods in Transit Insurance offer coverage for damage and cargo theft.
The main difference between these two types of insurance is that the CMR insurance is legally required for truck drivers and carriers that are transporting cargo within Europe, whereas the Goods in Transit is not mandatory.
To put it differently, the Goods in Transit Insurance is specially developed to protect drivers who regularly use their trucks to transport goods, tools and materials in connection with their business.
When CMR Insurance Would Apply?
As previously mentioned, having a CMR insurance is mandatory according to the CMR Convention.
Thereupon, the CMR insurance would apply when the cargo is being transported by road and that road leads through two nations where one of them is part of the CMR Convention.
When Would Not Apply?
On the other hand, the CMR insurance would not apply in the following situations:
- When the truck is transporting furniture removals;
- When the truck is transporting funeral consignments;
- When the truck is transporting personal goods;
Who Needs CMR Insurance?
In the first place, the aim of the CMR insurance is to address the liability of all trucking and logistics companies that are involved in the transportation of all types of cargo. Starting from this point of view, the CMR insurance applies to all carriers that are operating within Europe. The CMR insurance can be concluded within 1 month up to a year.
In the event that a partial or a total loss(damage) occurs during the transportation process the CMR insurance offers comprehensive and customized protection under the mandatory statutory liability regulations for the carrier in road transport and even beyond.
To conclude, the CMR insurance is a type of insurance policy that applies to all movements of goods by trucks that transport cargo internationally, or that is to say in countries where at least one of the countries is a signatory or has acceded to the convention.
So, get a CMR insurance and keep your trucking company/ logistics company liable!