Motor Truck Cargo Protection

If you’re new to being a Motor Carrier, you’ve probably asked yourself:

“So, who’s actually responsible for the freight in my truck if something goes wrong?”

That’s where Commercial Cargo Insurance, also known as Motor Truck Cargo protection, comes into play.

This specialized insurance is designed to protect the cargo you’re hauling against unexpected events like theft, fire, and collision.

Understanding its importance, coverage options, and limitations is vital to safeguarding both your livelihood and your customers’ goods.

Finding affordable truck cargo insurance is essential if you want to be profitable.

Here’s a cheat sheet on Cargo Insurance for Motor Carriers:

Why is Motor Truck Cargo Coverage Important for Motor Carriers?

When you haul freight as a motor carrier, you assume responsibility for the cargo while it’s in your care, custody, and control.

If that cargo is damaged or stolen, it’s typically up to you to cover the losses—unless you have Motor Truck Cargo Insurance.

The Federal Motor Carrier Safety Administration (FMCSA) and legislation like the Carmack Amendment make motor carriers liable for freight claims unless the issue falls under specific exceptions like an Act of God or the inherent vice of goods.

Having the right cargo insurance in place is essential to ensure you’re protected.

Commercial Cargo Insurance coverage includes protection from these incidents:

• Theft
• Fire
• Collision
• Striking of Load

Motor Truck Cargo protection often includes additional coverage:

• Debris Removal or Pollution Cleanup
• Earned Freight
• Sue & Labor Clause
• Equipment Protection

Motor Truck Cargo Protection is based on the type of Freight:

Freight is typically broken into 12 main categories:

• Refrigeration Breakdown Commodities
• Aircraft/Auto/Boats
• Building Supplies
• Chemicals
• Construction Materials (Raw)
• Consumer Goods
• Farming/Agriculture/Livestock
• Food & Beverage
• Machinery & Equipment
• Metals/Minerals/Coal
• Miscellaneous
• Paper/Plastic/Glass

Each freight category is then broken into more specific groups:

Refrigeration Breakdown Commodities

Beer/Wine, Dairy, Eggs, Fresh Seafood, Frozen Food (Non-Seafood), Frozen Seafood, Meats/Dressed Poultry, Temperature Controlled Trees/Shrubs/Plants/Cut Flowers

Aircraft/Auto/Boats

Aircraft Engine, Aircraft parts (not engine), Auto accessories (not tires), Automobiles, RV/Travel Trailer/Golf Cart, Carts/Boats, Tires, Other Autos/Aircrafts

Building Supplies

Aggregates Gravel/Rock/Sand/Stone, Asphalt or Cement (Bulk or Dry/Bagged), Carpet (Not Oriental), Dyes/Inks/Paints (Non-Hazardous), Electrical Supplies, Lumber, Marble/Granite/Other Stones Slabs, Mobile/Modular Homes, Pipe, Plumbing Supplies, Tools, Wire, Wood Products (Not Furniture or Caskets), Other Building Supplies.

Chemicals

Chemicals (Non-Hazardous), Cleaning Supplies & Compounds, Dyes/Inks/Paints (Non-Hazardous), Liquids Non-Chemical or Non-Petroleum, Other Chemicals

Construction Materials (Raw)

Asphalt or Cement (Bulk or Dry/Bagged), Aggregates Gravel/Rock/Sand/Stone, Logs, Marble/Granite/Other Stone Slab,  Other Construction Materials (Raw)

Consumer Goods

Appliances, Carpet (Non-Oriental), Caskets, CDs/DVDs/Video Games/Tapes, Clothing & Shoes (Non-Designer), Cosmetics/Perfume, Furniture (New), Household Goods (Mover), Musical Instruments, Office Equipment, Pharmaceuticals (Over the Counter), Spas/Hot tubs, Sporting Goods, Toys, Other Consumer Goods.

Farming/Agriculture/Livestock

Cotton (Non-Ginned), Feed and/or Fertilizer, Grain/Hay, Livestock, Mulch/Topsoil and Fill, Non-Temperature Controlled Plants/Shrubs/Trees, Salt, Seeds, Tobacco Leaf (Raw), Other Farming/Agriculture

Food & Beverage

Baked Goods, Beverages (Other than Beer/wine/liquor), Canned Goods, Flour, Fruits, Oils (Edible), Salt, Tea/Coffee/or other Spices, Vegetables, Other Food & Beverage

Machinery & Equipment

Construction Equipment, Electrical or Communication Equipment, Machinery, Medical/Scientific Instruments & Equipment, Office Equipment, Oilfield Equipment, Other Machinery & Equipment

Metals/Minerals/Coal

Aluminum, Coal, Coiled Steel, Iron (Raw) & Ore, Metal Products, Scrap Metal, Steel, Zinc, Other Metals/Minerals/Coal

Miscellaneous

Animal Byproducts, Business Documents/Non-Negotiable Securities, Caskets, Containerized Freight, Garbage, Mobile/Modular Homes, Recycling Materials, Resins, Salt, Scrap Metal, Textiles/Skins/Furs, Other Miscellaneous

Paper/Plastic/Glass

Bottles (Plastic), Containerized Freight, Glass Products, Metal Products, Packing Materials & Supplies, Paper & Paper Products, Plastic Products, Printed Material, Recycling Materials, Rubber Products (not tires), Other Paper/Plastic/Glass

How does Reefer Cargo Insurance Work?

If you’re hauling refrigerated or temperature sensitive goods, you can add an endorsement for Reefer Coverage to your Motor Truck Cargo Insurance policy.

Reefer insures the freight you’re hauling for damage or loss due to Spoilage or Change in Temperature.

However, on many policies, this coverage does not apply in cases of poor maintenance, so regular servicing of your refrigeration units is essential.

The damage or loss must be from a sudden accidental breakdown of the refrigeration or heating unit in your truck.

Here’s more on who has the Best Reefer Cargo Insurance right now.

Most Reefer policies include some coverage for Temporary Storage to maintain the freight in the event of an incident.

What are the Excluded Commodities in a Motor Truck Cargo policy?

Motor Truck Cargo policies can differ on exclusions, but by and large these commodities are excluded:

• Art
• Jewelry
• Precious or Semi-Precious Metals or Alloys
• Money and Papers or Securities
• Contraband
• Prescription Pharmaceuticals
• Tobacco
• Alcohol (Beer and Wine are often an exception)
• Explosive or Radioactive Material
• Mobile or Modular Homes
• Shipping Containers (coverage only available for the commodity being hauled)

What else can cause a Cargo Claim to be denied?

• Property while in the custody of any other carrier
• Storage greater than 72 hours unless due to a weather emergency
• Failure to maintain the refrigeration/heating system on a Reefer Truck
• Previously undisclosed exposure to types of commodities being hauled

Is Wetness, Rust or Dampness Damage to Cargo Covered?

In general, Yes.  But it was not always the case, which is why it’s best to read your policy and talk with your Transportation Insurance Expert.

When GEICO launched their new Trucking Insurance program nationwide in 2024 and rolling into 2025, their policy was clear that they did not exclude the perils of wetness, rust or dampness as long as the freight was contained in a fully enclosed, water-tight dry van…or is completely covered by a securely faster waterproof tarp.

Read more at New Truck Insurance Option for Steel Haulers.

This friendly competition over better coverage might be why Progressive introduced their Cargo Plus Endorsement.

Progressive’s expanded Cargo Plus coverage, which is pretty similar to GEICO’s policy, is now available in 42 states.

You can read more at CIS Progressive Commercial Truck Insurance Blog.

What limits of Motor Truck Cargo do I need?

The amount of Cargo Coverage you need can be as low as $5,000 or as high as $250,000. It depends on your customer’s requirements.

Most customers request Box Truck Insurance to cover $100,000 in Cargo, so it has become the industry standard.

Same goes for General Freight for Semis.

Sprinter Van Insurance and Cargo Van Insurance can be different.

Some customers will accept less coverage, but the industry standard is still $100,000.

Typical deductibles are $1,000 for general freight and $2,500 or $5,000 for Reefer.

How much does Motor Truck Cargo Insurance Cost?

Affordable truck cargo insurance IS possible for new Motor Carriers.

The premium for motor truck cargo is greatly impacted by your insurance credit score.

If the premium for your Commercial Auto Liability is high, your cargo premium will be high.

When you package your Motor Truck Cargo with your Commercial Auto Policy, your premium is usually lower.

For example, last week a stand-alone Cargo policy for one unit came in at $2,100.

The same $100,000 in Cargo packaged with Commercial Auto Liability brought the Cargo portion in at $993.

Insurance companies make it worth your while to bundle your coverage.

The examples below are based on a good insurance credit score in a bundled package:

The typical Motor Truck Cargo premium for a small Commercial Vans comes in between $500 and $1,000 per year for $100,000 in coverage.

Box Truck Insurance with Reefer at $100,000 runs about $2,500-$3,500 per year.  Commodities greatly influence this rate.

Hot Shot Insurance for Duallys hauling cars frequently requires $250,000 in cargo.  The premium can run between $1,500 and $2,500 per year.

That same $250,000 cargo limit for a large multi unit Auto Hauler Tractor Trailer can run between $2,500 and $3,500 per year.

Who has the most Affordable Motor Truck Cargo Insurance right now?

Motor Truck Cargo coverage can be bought as a stand-alone policy, but if you’re just starting out, it’s usually cheaper to add it to your Commercial Auto Liability Policy.

GEICO Commercial Truck Insurance has some of the lowest premiums right now, but insurance rates change.

Next year, Progressive or another provider might offer a better deal:)

That’s why at CIS we shop around for you at every renewal—we do the work, so you don’t have to!

Why choose CIS for your Motor Truck Cargo Insurance?

We’re a small, family-owned agency, and we’ve been helping small businesses and new ventures like yours since 2002.

Just check out our CIS 5 Star Google Reviews to see why so many Motor Carriers and Owner Operators choose CIS!

Just starting to plan your new trucking business?

Give us a quick call—we’re happy to chat and share some free tips to help you get started without breaking the bank.

Be sure to check out some of our other CIS Commercial Truck Insurance Cheat Sheets:

• Commercial Truck Insurance Basics
• What is Commercial Trucking Liability Insurance
• Truck General Liability Explained
• Who Has the Best Commercial Truck Insurance
• What is Truckers Physical Damage Insurance

Want to get an idea of what kind of numbers you’re looking at today?

Then start a quick online GEICO Commercial Truck Insurance Quote!

Or just give us a call, we love to chat!

CIS (330) 864-1511

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