Motor Truck Cargo Insurance
Keep the freight—and the business—whole
Motor Truck Cargo Insurance protects the value of freight in transit against loss, damage, or theft. Most brokers and shippers require proof of cargo coverage before releasing high-value loads, and many contracts specify limits of $100,000 to $250,000 per vehicle.
Coverage
Covered peril | How the policy responds |
|---|---|
Accident-related damage | Pays for cargo damaged in an accident involving the insured truck (collision, overturn, or jackknife). |
Fire, Explosion, Lightning | Reimburses the shipper’s invoice value plus reasonable debris-removal expenses. |
Theft & Hijacking | Covers cargo stolen from a locked trailer, secured yard, or guarded terminal (policy conditions apply). |
Reefer breakdown (Endorsement) | Compensates for temperature-sensitive freight spoiled by refrigeration unit failure or power loss. |
Debris removal / Pollutant Clean-Up | An optional add-on that pays to clear spilled cargo and contaminated soil following an insured loss. |
Earned freight | Replaces lost income when a load can’t be delivered due to a covered claim. |
Not covered: intentional acts, unpaid freight charges, loss outside the policy radius, or excluded commodities (e.g., live animals, tobacco, precious metals) unless specifically scheduled.
Who needs it
Who typically needs Cargo Coverage
Owner-operators and fleets hauling for brokers or direct shippers.
Carriers transporting electronics, pharmaceuticals, produce, or other high-value goods.
Amazon Relay and retail big-box contract carriers (often require ≥ $200,000).
Refrigerated, flatbed, and auto-hauler operations with commodity exposure.
Limits & costs
Annual premiums often fall between $800 and $3,000 per power unit, influenced by the variables above.
Cost explanation
What drives the cost — key pricing levers
Commodity risk. Fragile or high-theft goods—electronics, liquor, pharmaceuticals—command higher rates than low-shrink items like bulk grain.
Policy limit. Every $50,000 you add in cargo limits raises the premium proportionally; $250,000 costs more than the $100,000 “broker-standard” limit.
Operating territory & radius. Long-haul, border crossings, high-crime metros, and coastal ports carry surcharges; short-haul, rural loops rate lower.
Security controls. GPS/ELD tracking, seal procedures, secure parking, and in-cab cameras can earn meaningful credits.
Loss history. Clean five-year cargo-claim record = discounts; prior theft or spoilage losses = steep loadings.
Equipment type. Reefers, flatbeds, and auto-haulers price higher than dry-van because the actual damage potential is greater.
Deductible choice. Raising the deductible from $1,000 to $2,500 or $5,000 can trim the annual premium by 5–15%.
Driver record & turnover. Experienced, low-CSA drivers help; rapid turnover or poor PSP scores drive up the rate.
Important: Actual premium depends on each carrier’s filed rating plan and your unique risk profile.
