What it covers
Motor truck cargo insurance covers the freight you're hauling against loss or damage while it's in your care, custody and control — typically from causes like collision, fire, and theft.
It does not cover your truck (that's physical damage) and it doesn't cover injury or damage you cause to others (that's liability).
Is it required?
Two different answers:
- Legally: FMCSA does not require cargo insurance for most general freight. Household goods movers are the notable exception and have their own filing requirements.
- Practically: yes. Brokers and shippers almost universally require at least $100,000 in cargo coverage before they'll book you, and they'll want to see it on your certificate.
Rule of thumb: your cargo limit should comfortably exceed the value of the loads you actually haul. $100,000 is the common baseline — but if you regularly move freight worth more than that, insure to the real number, not the market minimum.
The exclusions that cause denied claims
This is where truckers get hurt. Cargo policies commonly limit or exclude:
- Unattended vehicle theft — many policies won't pay if the truck was left unattended and unsecured. Know your policy's exact wording.
- Refrigeration breakdown — if you haul reefer, a mechanical breakdown spoiling a load is often not covered unless you add reefer breakdown coverage.
- Specific commodities — alcohol, tobacco, electronics, pharmaceuticals, live animals, and high-value targets are frequently excluded or sub-limited.
- Improper securement or loading — damage from how the freight was loaded or secured may be excluded.
If you haul anything on that list regularly, say so when you're quoted. A policy that doesn't match your freight is the most expensive kind.
What affects your cargo premium
- Commodity types and their theft/damage profile
- Limit and deductible
- Radius of operation and lanes
- Loss history
- Whether you need reefer breakdown or other add-ons
Related coverages worth understanding
- New authority insurance — what you need to get your own authority active.
- Non-trucking liability — coverage when you're not under dispatch.
- The MCS-90 endorsement — and why it doesn't protect you.
Common questions
Is motor truck cargo insurance required by law?
For most general freight, FMCSA does not require cargo insurance. Household goods movers are an exception. In practice, brokers and shippers almost always require at least $100,000 in cargo coverage before booking you.
How much cargo insurance do I need?
$100,000 is the common industry baseline requested by brokers. If you regularly haul loads worth more than your limit, you should insure to the actual value of the freight you move.
Does cargo insurance cover refrigeration breakdown?
Often not by default. Spoilage from a reefer mechanical breakdown typically requires adding reefer breakdown coverage to the policy.
Not sure what you need?
Tell us how you run and we'll shop it across our carriers — or just ask a question. No forms required.