Cargo Insurance for Truckers: Protecting the Freight You Haul

Cargo insurance — also called motor truck cargo insurance — protects the freight you are hauling if it is lost, stolen, damaged, or destroyed while in your care, custody, and control. It is separate from primary liability insurance and is not required by FMCSA, but most shippers and brokers require it as a contract condition before they will tender a load.

What Cargo Insurance Covers

A standard cargo policy covers direct physical loss or damage to the freight caused by: - Collision or overturn - Fire or explosion - Theft - Vandalism - Water damage (from external sources, not refrigeration failure) - Loading and unloading accidents (varies by policy)

Common Cargo Insurance Exclusions

Not all cargo losses are covered. Common exclusions include: - Temperature-related spoilage — standard policies often exclude reefer breakdowns; you need a reefer breakdown endorsement - Improper packing — if the shipper packed it wrong and it breaks in transit, the claim may be denied - Inherent vice — produce that rots because it was already close to expiry - Theft from unattended vehicle — many policies require the cab to be locked and the trailer sealed - Consequential damages — downstream losses from a delayed delivery

Coverage Limits That Matter

Cargo policies are typically written as "per occurrence" limits, meaning the limit applies to each separate loss event. Common limits range from $100,000 to $1,000,000. The limit you need depends on the freight you haul and the contract requirements of your shippers.

High-value freight (electronics, pharmaceuticals, jewelry, alcohol) often requires higher limits and may require specialized coverage.

Filing a Cargo Claim

If freight is damaged or missing, document everything immediately. Take photos at the time of delivery. Note the loss on the delivery receipt before the consignee signs. Notify your insurer promptly — most policies have strict notice requirements. Failure to follow the claims procedure is one of the most common reasons cargo claims are denied.