Motor truck cargo insurance
Your auto policy covers the truck. Your general liability policy excludes property in your care. Motor truck cargo is the policy that pays when the load is damaged, stolen or lost on the way.
Three kinds of cargo coverage
- Carriers legal liability: for for-hire truckers hauling other people's freight. Pays when you are legally liable for damage to the load.
- Owners cargo: for businesses hauling their own goods on their own trucks, such as contractors, distributors and farmers.
- Contingent cargo: for brokers and freight forwarders, responding when the motor carrier's own cargo policy does not.
Apply online
The online application asks the questions underwriters need for this coverage. Business owners fill it out directly, and insurance agents can complete it for a client or send it to them. Insurance agents can also request an appointment.
What drives the price
- Commodities hauled: electronics, alcohol, tobacco and copper are high-theft
- Highest value of a single load
- Radius of operation and states traveled
- Refrigerated loads and whether reefer breakdown is included
- Terminal storage and how long loads sit overnight
- Driver experience and cargo loss history
Common exclusions to check
- Unattended vehicle theft, unless the truck is locked and alarmed
- Commodities not listed on the policy
- Refrigeration breakdown, unless endorsed
- Spoilage from delay
- Loads over the per-vehicle limit
Coverage extensions to ask about
Loading and unloading
Many cargo claims happen at the dock, not on the highway: a forklift punctures a pallet or a load shifts when straps come off. Ask whether the policy covers freight while it is being loaded and unloaded, and whether that includes work done by the shipper's or receiver's crew.
Terminal and overnight storage
Freight parked at your terminal or a drop yard may be covered for a limited number of hours or days, or only up to a lower sublimit. If loads sit over a weekend, tell the underwriter.
Debris removal and earned freight
After a wreck, cleaning up a spilled load can cost more than the freight itself. Some forms add debris removal and pay the freight charges you lose when the load is destroyed. Ask whether these are included and at what limit.
How to get a motor truck cargo quote
- Have your DOT and MC numbers, years in business and the states you operate in.
- List the commodities you haul and roughly what percentage of loads each one makes up.
- Note the highest value of any single load and your average load value.
- Gather the vehicle and trailer schedule with VINs, and note which units have reefers.
- List your drivers with license dates and experience hauling the commodities you carry.
- Pull three to five years of cargo loss runs, plus details of any open claims.
- Send copies of broker or shipper contracts that set a cargo limit or name specific requirements.
Filings and shipper requirements
Household goods carriers may need a cargo filing with the FMCSA, and some states require cargo filings for intrastate carriers. Brokers and shippers often set their own minimums, commonly $100,000 per load, and will ask for a certificate before tendering freight.
Common questions
What is motor truck cargo insurance?
Motor truck cargo insurance covers freight on your truck. For a for-hire carrier, it usually pays for loss or damage to customers' goods you are legally liable for; for a business hauling its own goods, an owners cargo form covers your own property in transit.
What does motor truck cargo insurance cover?
Common covered causes include collision, overturn, fire and theft of the load, subject to the policy's exclusions and conditions. Many policies add loading and unloading, debris removal and terminal storage as extensions.
Who needs motor truck cargo insurance?
For-hire carriers, owner-operators leased to a carrier, and brokers who require it of their carriers. Many shippers and brokers ask for proof of cargo coverage before tendering a load, even where it is not required by law.
Is motor truck cargo required by law?
For most general freight carriers, federal law does not require cargo insurance. Household goods movers and some intrastate carriers are the exceptions. In practice, most brokers and shippers require it before giving you a load.
What limit do I need?
Set the limit at or above the most valuable load you haul, and check broker contracts. $100,000 per vehicle is a common minimum, and high-value freight may need more.
What is trailer interchange?
Trailer interchange covers physical damage to a non-owned trailer you pull under a written interchange agreement. It is related to cargo but is a separate coverage.
Is a load stolen from a truck stop covered?
It depends on the policy's theft conditions. Many cargo forms limit or exclude theft from an unattended vehicle unless the truck was locked, alarmed or parked in a secured lot. Read that condition before you renew and tell drivers what it requires.
Ready for a quote?
One online application. Owners and agents both welcome.
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