Most carriers have cargo insurance. Fewer know what it covers, and almost nobody reads the exclusions until the day they need to. That is a bad day to start reading.
What it is
Motor truck cargo insurance covers freight that is lost, damaged, or destroyed while in your care, custody, or control. It exists because of the Carmack Amendment (49 U.S.C. 14706), the federal law making you liable for freight you haul.
The math is simple. Load worth $85,000, accident, freight destroyed. Without cargo coverage, that $85,000 is yours under Carmack. With a $100,000 policy, your insurer pays it less your deductible.
How much
$100,000 per occurrence is the floor most brokers accept. Then it depends on what you actually haul:
| Freight type | Typical requirement |
|---|---|
| General dry van | $100,000 |
| Electronics, pharma, high-value | $250,000+ |
| Vehicles (car hauling) | $250,000 open, $500,000+ enclosed |
The FMCSA sets no federal cargo minimum, which surprises people. Brokers set it instead. See FMCSA insurance requirements for what the law actually mandates, and our car hauling guide for why vehicle freight is a different conversation. Check each rate confirmation too, since high-value loads often state their own minimum.
What is covered
- Freight damaged in a collision or rollover
- Fire or explosion
- Theft of the load from a secured location
- Water damage from weather
- Refrigeration breakdown, but only if your policy says so
The exclusions that actually bite
- Theft without forced entry. Unlocked trailer, load gone, claim denied. Lock it every time, including the ten-minute stop.
- Improper packing by the shipper. Their bad pallet, your denied claim.
- Debris removal. Cleaning up spilled freight is frequently billed separately from the freight itself.
- High-risk commodities. Electronics, jewelry, pharmaceuticals, artwork often need a specific endorsement. Standard policy, no coverage.
- Cargo not matching the BOL. If what is on the truck is not what the paperwork says, coverage can void entirely.
- Pre-existing damage. Sign a clean BOL and you own whatever was already broken.
Two things worth confirming in writing
Reefer breakdown. If you haul temperature-controlled, do not assume. Refrigeration failure coverage is often a separate endorsement, and a trailer of spoiled product is not a small number.
Your deductible. Usually $1,000 to $2,500. A high deductible cuts your premium and quietly makes small claims your problem. Price both before you decide.
Handling a claim
- Photograph everything at the scene: the damage, the surroundings, your securement
- Note damage on the delivery receipt before the consignee signs
- Call your insurer immediately, not tomorrow
- Preserve the BOL, rate confirmation, photos, estimates
- Cooperate fully with the adjuster
Premiums are at least fully deductible, and your cargo limit appears on the Certificate of Insurance every broker reads.