Auto & transportation

Motor Truck Cargo Insurance

Protection for the freight you haul for others, set up around your commodities, the value of your loads and your broker contracts.

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Motor truck cargo insurance can pay for loss of or damage to freight you haul for others, such as after an accident, fire or theft. Many cargo forms respond when you, as the motor carrier, are legally liable for the freight, and the exact wording varies by policy. Brokers and shippers usually require cargo coverage before they tender a load.

Cargo policies vary more than most. Each one has its own list of excluded commodities, its own theft and unattended-vehicle conditions and its own rules for refrigerated freight, so two policies with the same limit can respond very differently to the same claim.

Before you sign a broker-carrier agreement or haul a new commodity, compare the contract's requirements with your policy. We help motor carriers and owner-operators review that fit before the load is booked.

Your own goods or freight for others?

Motor truck cargo is built for motor carriers hauling other people's freight for hire. If your business moves its own goods, such as a manufacturer delivering its products, a distributor running its own trucks or a contractor carrying materials to a job, ask about transit or other inland marine coverage instead. Those forms are written for property you own, and a carrier's cargo policy usually isn't set up for it.

Some businesses do both. If you haul for others and also move your own products, each part needs its own review.

What's typically included

Exact coverage depends on the policy form, endorsements and insurance company.

Freight in transit

Typically responds to loss or damage to freight on your truck from causes such as collision, overturn, fire and theft, subject to the policy's conditions and exclusions.

Loading and unloading

Some policies extend to freight while it is being loaded or unloaded; others limit or exclude it, or apply only at certain locations. Confirm the wording if your drivers load, unload or handle freight themselves.

Reefer breakdown

An endorsement that can pay for spoilage caused by a sudden breakdown of the refrigeration unit. It often comes with maintenance and temperature-recording conditions.

Terminal and storage

Freight held at your terminal, yard or warehouse is often limited or excluded. Some policies add it by endorsement, usually for a set number of hours or days and only at listed locations.

Limits per vehicle and per occurrence

The limit usually applies per vehicle or per load, sometimes with a separate cap per occurrence or at a terminal. Match it to the most valuable load you actually haul.

Additional coverages

Some policies add debris removal after an accident, earned freight charges and reasonable costs to protect the load from further damage, often with their own smaller limits.

BMC-34 filing for household goods

Household goods carriers typically need their insurance company to file cargo coverage with FMCSA on a BMC-34, or to provide a BMC-83 surety bond. Most general freight carriers have no federal cargo filing.

What to watch for

Excluded commodities. Many forms exclude or limit high-theft or high-value freight such as electronics, alcohol, tobacco, pharmaceuticals, metals or live animals. Hauling one without an endorsement can leave a claim unpaid.
Unattended vehicle exclusions. Theft from a truck left unattended, or parked outside a secured or attended location, may not be paid unless the policy's conditions were met.
Theft conditions. Some policies require working alarms, kingpin or glad-hand locks, or exclude losses from fictitious pickups and other fraud schemes.
Reefer conditions. Breakdown coverage often requires maintenance logs and temperature records, and may exclude losses from wrong temperature settings or running out of fuel.
Limit per load versus your contracts. A $100,000 limit does not help on a $250,000 load. Some broker agreements require a higher limit per load or full replacement value.
Contract liability. Some broker-carrier agreements make you responsible for more than your cargo policy will pay, such as full invoice value or delay charges.

What affects price and eligibility

Commodities hauled and their typical value per load
Theft exposure, parking practices and security equipment
Reefer use and the age and maintenance of refrigeration units
Loss history, especially prior cargo and theft claims
Radius of operation and lanes run
Limit, deductible and endorsements such as reefer breakdown

Helpful information for a quote

Have what you can — we'll ask for anything else an insurance company needs. Starting a new business? You can begin without prior policies or loss runs.

List of commodities hauled, with approximate percentage of loads and maximum value per load
USDOT and MC numbers
Equipment list, including reefer units and their age
Loss runs for the last 3–5 years, if you've been insured before
Broker-carrier or shipper agreements showing required cargo limits
A short description of your parking, security and theft-prevention practices

Written by ALP Insurance

Who typically needs it

For-hire motor carriers hauling freight for brokers or direct shippers
Owner-operators running under their own authority
Refrigerated (reefer) carriers hauling food, produce or other temperature-sensitive freight
Flatbed carriers hauling machinery, steel or building materials
Box truck and final-mile carriers handling retail and e-commerce freight
Household goods movers

Talk it through with an agent

Not sure what you need? Start a request and choose "Not sure" — a licensed ALP agent will talk through the options with you.

Request a motor truck cargo quote

Industry guides

Motor Truck Cargo FAQs

Does cargo insurance pay the full value of every load?

Only up to the policy limit, minus the deductible, and only when the loss falls within the policy terms. If a load is worth more than your limit, ask about raising the limit before you take it.

I deliver my own products. Do I need motor truck cargo?

Usually not. Motor truck cargo is designed for carriers hauling freight for others. Businesses moving their own goods typically look at transit or other inland marine coverage, and we can help you review which fits your operation.

What is reefer breakdown coverage?

It is an endorsement for refrigerated carriers that can pay for spoiled freight when the reefer unit suddenly breaks down. It is usually not automatic and often carries maintenance and recordkeeping conditions.

What happens if my truck is broken into at a truck stop?

It depends on the policy's unattended vehicle and theft conditions. Some policies limit coverage when the truck is left unattended outside a secured location, so review those terms before you plan stops.

Do brokers set the cargo limit I need?

Often, yes. Broker-carrier agreements commonly list a minimum cargo limit and sometimes other terms, so compare your policy with the agreement before signing.

Does FMCSA require cargo insurance?

For most general freight carriers, cargo coverage is a broker and shipper requirement rather than a federal one. Household goods carriers are the main exception and typically need a BMC-34 cargo filing. Requirements depend on your operation, cargo and authority.