Motor Truck Cargo Insurance: What It Covers, What It Doesn't, and What You'll Actually Pay
Motor truck cargo insurance covers your legal liability when freight is lost or damaged in your custody. Here's what it covers, what it excl
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Coverage
Motor Truck Cargo Insurance for Owner Operators
Motor truck cargo insurance covers your legal liability for freight that's lost, damaged, or stolen while in your custody. FMCSA doesn't require it for most carriers, but most brokers and shippers do, typically with a $100,000 minimum limit and a clean exclusion schedule.
What Motor Truck Cargo Insurance Covers
- Loss or damage to freight you are legally liable for while it is in your custody, care, and control
- Theft of the load from your trailer at a truck stop, drop yard, or shipper's facility
- Damage from collision, overturn, fire, lightning, and most weather events during transit
- Loading and unloading damage on most policies — verify your declarations include this if you load yourself
- Debris removal and pollution cleanup costs after a covered loss, up to a stated sub-limit
- Salvage handling and disposal of damaged cargo when the consignee refuses delivery
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Get a Quote →Typical Annual Cost
Cargo insurance is priced per $100,000 of limit. Commodity type moves the rate significantly — select yours below for a tailored estimate.
Who Needs Motor Truck Cargo Insurance?
If you haul freight for hire — under your own authority or leased to a carrier that doesn't provide cargo coverage — you need motor truck cargo. Most freight brokers won't tender a load until they see proof of $100,000 minimum cargo coverage on a certificate, regardless of what FMCSA requires. Own authority operators almost always carry it as a matter of course. Leased-on operators should check the lease agreement — some carriers cover cargo for you, others require you to carry your own.
Common Exclusions
- Most policies exclude inherent vice and natural deterioration of perishables, produce, or commodities prone to spoilage
- Typical exclusions include temperature-sensitive freight unless you have a reefer breakdown endorsement
- Most policies exclude high-theft "target commodities" — alcohol, electronics, copper, pharmaceuticals — without an endorsement and a higher rate
- Typical exclusions include unattended trailers in unsecured locations after dark, or freight left without a security seal
- Most policies exclude household goods, livestock, autos, money, securities, art, and contraband on a standard form
- Specific exclusions vary by carrier — review the policy form and any special commodity endorsements before you accept a load that pushes the limit
Exclusions vary by carrier — always review your declarations and exclusions schedule before binding.
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Frequently Asked Questions
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FMCSA doesn't require cargo insurance for most general freight carriers. The exception is household goods carriers, which must carry at least $5,000 per vehicle and $10,000 per occurrence. That said, brokers and shippers contractually require cargo coverage from most motor carriers — usually $100,000 minimum.
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$100,000 is the floor most brokers accept. Higher-value lanes push that to $250,000 or more for electronics, metals, pharmaceuticals, and certain heavy machinery. Higher limits may be available for more valuable loads. Always check the broker packet and the rate confirmation before accepting a load.
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Most policies carry a $1,000 to $2,500 deductible per loss. You pay that out of pocket; the policy covers the rest up to your limit. Some policies have separate, higher deductibles for theft or specific commodities — read the declarations before you bind.
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Earned freight is the rate you would have collected for delivering the load. If a load is destroyed and the shipper doesn't pay, some cargo policies reimburse the lost freight charges as part of the claim. Not all forms include this — ask before you bind.
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Not on a standard form. Standard cargo policies exclude losses caused by mechanical or temperature failure of the reefer unit. If you haul frozen or refrigerated freight, you need a reefer breakdown endorsement attached to the cargo policy.
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You deal with it. The shipper or broker files a claim against your motor carrier authority, and your cargo insurer handles the investigation, valuation, and payment. Document everything at pickup and delivery — photos, BOL, seal numbers, and condition notes — because the burden is on you to prove what shape the freight was in when you took it.
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Target commodities are categories with high theft frequency or high per-load value: electronics, alcohol, tobacco, copper and other metals, pharma, and certain food products. Most policies either exclude these outright or require a special endorsement, higher limit, and additional security requirements like team driving, escorted runs, or no overnight drops at unsecured lots.
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Most modern policies include loading and unloading on the standard form, but older or budget policies sometimes don't. If you do live loads or self-load with your own equipment, confirm with your agent that loading-unloading is on the policy before the first claim.