Cargo Insurance
What is cargo insurance? Cargo insurance covers loss or damage to the freight a motor carrier is hauling, distinct from the carrier's primary liability coverage on the truck itself.
Full definition
Cargo insurance is required by most brokers and shippers, typically with $100,000 in coverage as the standard floor. Some loads (high-value, electronics, pharmaceuticals) demand $250,000 or more.
Cargo coverage is separate from primary liability (which covers third-party bodily injury and property damage from an accident the carrier causes). Both are required for most for-hire interstate operations.
Cargo claims hit carriers hard because the deductible is usually $1,000-$2,500 and the per-occurrence limits leave gaps on high-value loads. Pricing depends on commodity type, lane risk, claims history, and the cargo limit selected.