What Is Motor Truck Cargo Insurance?
Motor truck cargo insurance protects the freight you are hauling against loss or damage while it is in your care, custody, and control. When a load is stolen, damaged in a collision, or lost to fire or weather, cargo insurance pays the shipper or consignee for the value of the goods — and protects you from out-of-pocket liability that can quickly exceed the value of your truck.
As a motor carrier or independent owner-operator, you are legally liable for freight you accept under a bill of lading. Federal regulations under the Carmack Amendment (49 U.S.C. § 14706) establish carrier liability for interstate freight. Without cargo coverage, a single catastrophic loss — a $150,000 load of electronics destroyed in a trailer fire — can put a small operation out of business.
Who Is Required to Carry Cargo Insurance?
While federal law does not mandate minimum cargo limits for most dry freight haulers, most freight brokers, shippers, and load boards require it as a condition of dispatch. Common broker requirements include:
- $100,000 per occurrence — standard requirement for most general freight
- $250,000 per occurrence — often required for high-value electronics, pharmaceuticals, or metals
- Refrigerated cargo endorsement — required for temperature-controlled loads with specific reefer breakdown provisions
For household goods carriers, FMCSA regulations require cargo insurance as part of the operating authority application process.
What Does Cargo Insurance Cover?
A standard Motor Truck Cargo policy covers freight against:
- Collision and overturn — damage caused when the truck is involved in an accident
- Fire and explosion — including cab and trailer fires
- Theft — both full theft of the trailer and hijacking
- Water damage — from flooding, rain intrusion, or firefighting efforts
- Loading and unloading errors — if included in the policy form
Important exclusions to understand: most standard cargo policies exclude temperature-sensitive cargo losses due to mechanical reefer breakdown (requires separate endorsement), contraband, and employee theft (which falls under a crime policy).
Cargo Coverage Limits and Deductibles
Most truckers select cargo limits between $100,000 and $250,000, with deductibles ranging from $1,000 to $5,000 per occurrence. Higher deductibles reduce premiums — choosing a $5,000 deductible over $1,000 can reduce cargo premiums by 15–25%.
| Coverage Limit | Typical Annual Premium Range | Best For |
|---|---|---|
| $100,000 | $1,800–$3,500 | Dry van general freight, flatbed steel |
| $150,000 | $2,200–$4,500 | Mixed freight, produce |
| $250,000 | $3,500–$6,500 | Electronics, pharmaceuticals, metals |
Specialty Cargo Coverages
Some loads require endorsements beyond the standard cargo form:
- Refrigerated cargo (reefer breakdown): Covers temperature-sensitive spoilage when your refrigeration unit fails mechanically
- Flatbed/oversized load coverage: Addresses tarping requirements and load securement liability
- High-value cargo floater: For loads exceeding standard per-occurrence limits
- Earned freight coverage: Pays your contracted freight charges when a load is lost
Why Choose Polaris Insurance Group?
Cargo claims are notoriously technical. Shippers move quickly to file claims, and without a carrier that understands trucking exposures, legitimate claims can be disputed or delayed. Polaris represents specialty trucking insurers — including AIG, Northland, and Berkley Prime — that have dedicated cargo claims teams experienced in commercial trucking.
We review your lane history and commodity mix to recommend the right limit and endorsements, so you aren’t over-insured on loads you don’t haul or under-insured on the ones that matter most.
Bottom Line: Motor truck cargo insurance covers the freight you haul when something goes wrong in transit. Most freight brokers require at least $100,000 in cargo coverage before dispatching a load. Polaris Insurance Group matches your commodity type and lane profile to the right cargo policy — protecting your freight and your business.
Get a cargo insurance quote — tell us what you haul and we’ll find the right fit.
Frequently Asked Questions
Is cargo insurance required by the FMCSA?
Not for most dry freight carriers. However, freight brokers, shippers, and load boards almost universally require it as a condition of dispatch. Household goods carriers are the main exception — FMCSA requires cargo coverage for movers as part of the authority application.
Does cargo insurance cover my trailer if it is stolen?
Cargo insurance covers the freight inside the trailer, not the trailer itself. The trailer is covered under physical damage (collision and comprehensive) insurance. If your trailer is stolen with freight inside, you would file against both policies.
What is a cargo policy deductible?
The deductible is the amount you pay out of pocket before insurance pays the remainder of a covered claim. Typical deductibles range from $1,000 to $5,000. Choosing a higher deductible reduces your annual premium.
Does cargo insurance cover produce or refrigerated loads?
A standard cargo policy covers refrigerated loads for collision, theft, and fire — but not mechanical reefer breakdown. You need a separate reefer breakdown endorsement to cover temperature-sensitive spoilage when your refrigeration unit fails.
What happens if I am in an accident and the load is damaged?
You should document the scene, notify your carrier immediately, and file a cargo claim. Your insurer will investigate the cause of loss and the value of the damaged freight. Prompt notification is critical — most cargo policies require you to report losses within 24–72 hours of discovery.