The short answer
Motor truck cargo insurance covers the freight in your care against causes of loss your policy covers, up to your limit. Brokers commonly require $100,000. The details matter more than the limit: commodity exclusions, theft conditions, reefer breakdown and whether the form is named perils or broad form.
Motor truck cargo insurance protects the freight you haul. It's not required by FMCSA for most property carriers, but nearly every broker requires it. It's also the coverage where denied claims are most common, so understanding the policy is essential.
What cargo insurance covers
Depending on the form, losses from:
- Collision and overturn
- Fire and explosion
- Theft (subject to conditions)
- Weather events
- Loading and unloading accidents (on some forms)
- Reefer breakdown (if endorsed)
Named perils vs. broad form
| Named perils | Broad form | |
|---|---|---|
| What's covered | Only causes listed in the policy | All causes except those excluded |
| Typical cost | Lower | Higher |
| Best for | Simple freight, tight budgets | Varied freight, broker requirements |
How much cargo coverage do you need?
$100,000 is a common broker requirement. High-value loads may need more; ask the broker for the declared value before you accept. Also check for a per-vehicle limit lower than the per-occurrence limit.
Common exclusions to read
- Excluded or unscheduled commodities (often electronics, alcohol, tobacco, pharmaceuticals, livestock)
- Unattended vehicle and theft conditions
- Spoilage without reefer breakdown coverage
- Improper loading or packaging by the shipper
- Contractual liability beyond your legal liability
Reefer breakdown
If you haul refrigerated freight, standard cargo forms often exclude spoilage from temperature changes. Reefer breakdown coverage fills that gap, usually with its own deductible and conditions such as maintenance records and temperature downloads.
How to avoid a denied cargo claim
- Match your commodity list to what you actually haul
- Know your theft and parking conditions
- Add reefer breakdown if you haul temperature-controlled freight
- Note exceptions on the BOL and delivery receipt
- Report losses immediately with photos and documents
Read the full guide: why cargo claims get denied.
What affects cargo pricing
Commodities, load values, theft exposure, radius, claims history and the form you choose. See truck insurance cost.
Questions truckers ask
How much cargo insurance do I need?
$100,000 is common for broker requirements; high-value loads may need more.
Does cargo insurance cover reefer spoilage?
Only if you have reefer breakdown coverage, and usually with conditions.
Is cargo insurance required by law?
Not for most property carriers, but most brokers require it. Household goods carriers have separate federal requirements.
What is broad form cargo insurance?
Coverage for all causes of loss except those specifically excluded, usually broader than named perils.
Written by the FairlyCover Editorial Team. This guide explains how coverage generally works. It isn't legal or insurance advice, and your policy wording always decides what's covered. How we write and review content.
