Motor Truck Cargo Insurance
Motor Truck Cargo coverage isn’t just another box to check on your policy.
It’s what protects your load when something goes sideways. If you're in the business of hauling goods you don't own, you need it.
What Is Motor Truck Cargo insurance?
Motor Truck Cargo insurance covers the freight you’re hauling in case it gets damaged or stolen while in your care. Think fire, collision, theft, or a reefer unit malfunction that turns a load of fresh produce into compost. If you're holding the goods, you're on the hook. That’s where cargo coverage steps in.What It’s For
Simple. It protects your customer’s property while it’s on your truck or trailer. Shippers want proof you have it before they hand over their freight. Brokers will not book you without it. And if you think you can skate by with a $100K policy when you’re hauling high-end electronics or fresh meat, think again.How It Works
When there’s a claim, cargo gets damaged in a wreck, stolen at a truck stop, or spoiled due to reefer failure, you file under your cargo policy. The carrier investigates and pays out based on the coverage limits, forms, and exclusions in your policy. But here’s the catch. If you’re underinsured, you’re eating the rest. Claims over your limit get expensive fast.Common Exclusions (Read This Twice)
Not everything is covered. Most policies exclude:- High theft items like jewelry, firearms, and certain electronics
- Contraband or illegal goods (yes, this has come up)
- Improperly secured loads
- Wet or damp loads: damage caused by moisture, leaks, or condensation during transit is often not covered unless specifically endorsed
- Rust, corrosion, or breakdown from moisture exposure in transit: if your load gets damaged because of humidity, poor sealing, or sitting too long in the wrong conditions, you're likely on the hook
- Temperature-sensitive cargo and driver error: if the reefer is not set right or temps are not monitored, that is usually on the driver and not covered unless you have specific endorsements
- Certain commodities like tobacco, live animals, or hazmat without special endorsements
- Infidelity or dishonesty, criminal acts by any person in your service or employment
If you don’t know exactly what your policy excludes, you
might be hauling uninsured and not even know it.
Different Forms of Coverage
Cargo policies are not one size fits all.- Named Perils: Cheaper, but only covers specific causes of loss like fire or collision
- Broad Form: More protection than Named Perils, but not as comprehensive as All Risk
- All Risk: Covers almost anything except what is excluded
- Reefer Breakdown: Optional. Do not haul produce, flowers, or frozen freight without it
- Excess Cargo Limits: For high value freight. If your load is worth more than your base limit, this gives you extra cushion
The wrong form means the wrong payout. That is a very
expensive mistake.
Why the Right Coverage Matters
Cargo is not just covered or not covered. It is covered right, or it is not. You need coverage that matches what you actually haul. Do not rely on a lazy agent who slaps a generic $100K limit on your policy without asking questions. And do not assume that limit is enough just because your broker said you are good.Because when the claim hits, it is your business on the
hook.
What You Haul Changes Everything
Listing “general freight” on your application does not cut it. That might fly with an inexperienced agent trying to get a fast quote. But if you want accurate pricing, good coverage, and no surprises at claim time, we need specifics.Cargo is rated based on what is in the trailer. There is a
big difference between hauling paper towels and hauling frozen seafood.
High-risk cargo like electronics, pharmaceuticals, or auto parts has higher
theft exposure. Temp-sensitive freight is its own category. Bulk feed, steel
coils, or nursery stock each bring different risks.
We know that you do in fact haul general freight. But let’s
be real—there’s a lot that falls under that category. So tell us—what do you
actually haul the most month to month? What’s your target commodity?
Are you:
- Thinking about getting into UIIA container work?
- Planning to haul overweight or oversized loads that need permits and route planning?
- Quoting high-value auto hauls?
- Going after military contracts?
- Considering hazmat?
All of this matters. If we don’t know where your business is
headed, how are we supposed to find the right carrier and get you the best
premium? Help us help you—be specific.
And here is the part that is often not discussed. Every
commodity has its own truckload value. A trailer full of TVs might be worth
$300,000. A load of boxed dry goods might be worth $30,000. The insurance
company looks at that exposure, and that is what drives your rate. If they do
not know what you are hauling, they will either overprice or exclude it.
Give vague info, and your policy will be priced or
underwritten wrong. Worst case, you file a claim and find out your load is not
covered at all.
You should list at least three or four specific cargo types
you haul or plan to haul. Not just “dry van” or “reefer.” What is inside
matters.
This helps us:
- Match you with the right market
- Avoid hidden exclusions
- Build a policy that actually works when something goes wrong
Do not let “general freight” and a green agent set you up
for failure.
Higher Cargo Limits Are the New Normal
It used to be that a $100K cargo limit was enough. Not anymore.Freight values are rising. Not just because of cargo theft
or fraud. The cost of goods has gone up. One pallet today might be worth twice
what it was five years ago. Multiply that by 24 pallets and one truckload could
be worth more than $250K.
We see it across every sector:
- Electronics and consumer goods cost more to produce
- Grocery and food loads are worth more due to inflation and perishability
- Medical and pharmaceutical freight is high value
- Even basic items like steel or lumber have gone up in price
Shippers and brokers are adjusting their requirements. If
your limits do not keep up, you are losing loads.
More coverage means more risk for the insurer. That means:
- Underwriting gets tighter
- Deductibles go up
- Premiums rise
If you are quoting $300K loads with a $100K policy, you are
setting yourself up to lose. Higher limits are not optional anymore. They are
the cost of doing business.
Quoting Loads That Require More Cargo Than You Have
Let’s say you are quoting a load that needs $150K in coverage but your policy only covers $100K. That is not a big deal once in a while. Your agent can request a midterm endorsement to raise your limit. If the underwriter approves, you get a new COI for the load.But when it happens every week, that is a problem.
Insurers do not want to see policies with limits constantly
changing. It tells them you are not set up for the freight you are quoting. It
creates more admin work and shows you are not stable.
And changing it takes time.
It usually involves:
- A request to the underwriter
- Review and approval
- Rate and pricing updates
- A new certificate
Want to slow it down even more? Get ready for questions.
Underwriters will ask:
- What is being hauled
- Is it temperature controlled
- Is this a one-time load
- Is the shipper or broker new
- Do you have experience with this kind of freight
They are not trying to be difficult. They are trying to
manage risk.
By the time the paperwork clears, you might have already
lost the load. Now you are frustrated. But that is not your agent’s fault. It
is yours. You did not carry the limit you actually needed.
The price difference between $100K and $150K in cargo
coverage is usually small. The cost of lost loads while waiting on last-minute
changes is not.
If you are constantly quoting higher cargo, it is time to
raise your base policy.
Stop patching. Start planning.
