Protect the Freight You Haul
Motor truck cargo insurance helps protect the property and freight your trucking business transports for customers. If cargo is damaged, destroyed or stolen while in your care, custody or control, your business could be responsible for the loss.
Whether you are an owner-operator or manage a large fleet, one cargo claim can create a significant financial burden. The right coverage helps protect your business, your customers and your professional reputation.
What Does Motor Truck Cargo Insurance Cover?
Motor truck cargo insurance may help pay for covered damage to freight caused by events such as:
- Collision
- Vehicle overturn
- Fire
- Theft
- Vandalism
- Certain weather-related losses
- Loading or unloading accidents
- Water damage
- Equipment failure, when specifically covered
- Debris removal
- Cleanup expenses
- Legal expenses related to a covered cargo claim
Coverage depends on the policy’s terms, limits, deductibles, exclusions and covered causes of loss.
Who Needs Motor Truck Cargo Insurance?
Cargo insurance is important for trucking businesses that transport property belonging to others, including:
- For-hire motor carriers
- Owner-operators
- New trucking ventures
- Dry-van carriers
- Refrigerated carriers
- Flatbed operators
- Hotshot trucking businesses
- Box-truck operators
- Household-goods movers
- Auto haulers
- Dump-truck operators
- Dirt, sand and gravel haulers
- Local and long-haul carriers
Although federal law does not require cargo insurance for every type of motor carrier, many brokers, shippers and customers require proof of coverage before assigning loads.
How Much Cargo Coverage Do You Need?
The appropriate cargo limit depends on the type and maximum value of the freight you transport. Many general freight operations carry a $100,000 cargo limit, but some contracts or commodities may require higher limits. Before selecting coverage, consider:
- The maximum value of a single load
- Types of cargo transported
- Broker and shipper requirements
- Whether loads are transported in multiple vehicles
- Seasonal increases in cargo value
- Whether specialized or high-value freight is hauled
Your cargo limit should be high enough to cover the maximum value you could have in one truck at any time.
What Types of Cargo Can Be Insured?
Coverage may be available for many commodities, including:
- General merchandise
- Building materials
- Machinery
- Steel
- Lumber
- Food products
- Refrigerated goods
- Consumer products
- Electronics
- Vehicles
- Furniture
- Construction equipment
- Dirt, sand and gravel
Certain commodities may require specialized underwriting, higher deductibles or separate coverage. High-risk cargo may include alcohol, tobacco, pharmaceuticals, jewelry, firearms, live animals, household goods and high-value electronics.
Always provide a complete and accurate description of everything you may haul.
Common Cargo Insurance Exclusions
Cargo policies do not cover every type of loss. Common exclusions or limitations may apply to:
- Unattended vehicles
- Employee theft
- Dishonest acts
- Improper loading or securing
- Ordinary wear and tear
- Gradual deterioration
- Inherent vice
- Temperature-related losses
- Delay or loss of market
- Voluntary parting with cargo
- Illegal transportation
- Undisclosed commodities
- Cargo exceeding the policy limit
Exclusions vary by insurance company. We will review your operation and help identify endorsements or specialized coverage you may need.
Refrigerated Cargo and Reefer Breakdown Coverage
Standard cargo insurance may not automatically cover spoilage caused by a refrigeration-unit breakdown or temperature change.
Reefer breakdown coverage may help protect refrigerated freight when a covered mechanical failure causes:
- Spoilage
- Freezing
- Temperature fluctuations
- Contamination
- Rejection of the load
Insurance companies may require maintenance records, temperature logs and minimum equipment-age standards. Coverage is subject to specific waiting periods, deductibles and exclusions.
Does Cargo Insurance Cover Loading and Unloading?
Some cargo policies include coverage while freight is being loaded or unloaded, while others limit or exclude it. The policy should be reviewed carefully to determine when coverage begins and ends.
Depending on your operation, additional coverage may be needed for:
- Forklift damage
- Dropped cargo
- Tarping losses
- Improper securement
- Freight stored temporarily
- Cargo transferred between vehicles
Cargo Deductibles
The deductible is the amount your business pays toward a covered cargo claim before the insurance company pays the remaining covered amount.
Common cargo deductibles may include:
- $1,000
- $2,500
- $5,000
- Higher deductibles for theft-prone or high-value cargo
A higher deductible may lower your premium, but it also increases your out-of-pocket expense after a claim.
What Affects the Cost of Cargo Insurance?
Insurance companies consider several factors when determining the premium, including:
- Type and value of cargo
- Requested coverage limit
- Deductible
- Operating radius
- States of operation
- Number and type of trucks
- Driver experience
- Loss history
- Security procedures
- Vehicle tracking systems
- Overnight parking locations
- New-venture status
- Refrigeration equipment
- Loading and securement practices
Providing accurate cargo information helps us approach the appropriate insurance companies and obtain the most competitive options for your business.
Additional Coverage Options
Your motor truck cargo policy may be combined with other important trucking coverages,
including:
- Commercial auto liability
- Physical damage
- General liability
- Trailer interchange
- Non-trucking liability
- Rental reimbursement with downtime
- Warehouse legal liability
- Refrigeration breakdown
- Earned freight charges
- Debris removal and pollution cleanup
Get a Motor Truck Cargo Insurance Quote
Protect the freight your customers trust you to transport. We will review your commodities, load values, operating radius and contractual requirements to help you find appropriate cargo coverage. Contact us today to discuss your trucking operation and request a motor truck cargo insurance quote.
Request a Quote
Coverage availability, limits, deductibles and requirements vary by carrier, state, commodity and individual risk. All coverage is subject to the terms, conditions, limitations and exclusions of the applicable insurance policy.
