Commercial Truck Insurance

Motor Truck Cargo
Coverage Guide

Protecting the freight you haul against loss and damage

Optional — Required contractually by most shippers and freight brokers

What Does Motor Truck Cargo Cover?

Motor truck cargo insurance covers the freight you are transporting if it is damaged, destroyed, or stolen while in your custody. It pays the shipper or cargo owner for their loss. Covered perils typically include accidents, fire, theft, vandalism, and in some cases flood. Standard policies exclude certain cargo types — refrigeration breakdown, inherent vice, improper loading by shipper, and specific high-risk goods are common exclusions.

Who Needs Motor Truck Cargo?

Any carrier transporting freight for others needs cargo insurance. Most shippers and freight brokers will not book loads without it. Minimum cargo limits of $100,000 are standard; high-value freight (electronics, pharmaceuticals) requires $250,000–$500,000. Even if not legally required, operating without cargo coverage exposes you to the full value of any load you haul.

Cost & Coverage Limits

Annual Cost Range

$800 – $3,500

per truck, per year (estimates vary)

Minimum Limit

$10,000 (minimum most carriers will write)

statutory or lender minimum

Typical Coverage

$100,000 – $250,000

industry standard limit

Key Facts About Motor Truck Cargo

Covers freight you haul against damage, theft, and certain losses
Most shippers and brokers require $100,000 minimum coverage
Does NOT cover refrigeration breakdown (needs a separate reefer breakdown endorsement)
Deductibles typically $1,000–$5,000 per occurrence
Excludes certain commodities — always verify your cargo is covered before accepting a load

Common Questions About Motor Truck Cargo

Does cargo insurance cover theft from a parked truck?

Yes, most motor truck cargo policies cover cargo theft from an unattended vehicle — but often with conditions. Many policies require the truck to be locked, parked in a secure location, and some require the theft to occur within a specified distance of your regular route. Check your policy for any geographic restrictions or security requirements.

What cargo is typically excluded from motor truck cargo policies?

Common exclusions include: artwork and antiques (over a per-piece limit), live animals, bullion and currency, used household goods (for non-specialized movers), and temperature-sensitive freight damaged by reefer breakdown (unless you have a refrigeration breakdown endorsement). Always disclose your cargo types to your agent before binding coverage.

How much cargo insurance do I need?

You need enough cargo coverage to cover the highest-value single load you typically haul. If you regularly haul $80,000 loads of electronics, you need at least $100,000 in cargo coverage. Most brokers require a minimum of $100,000 on your certificate of insurance regardless of actual load values.

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Other Commercial Truck Coverage Types

Also see: Full Coverage Checklist · Coverage by Truck Type · FMCSA Requirements Guide