Motor Truck Cargo Insurance

Motor truck cargo insurance (cargo) provides insurance on the freight or commodity hauled by a for-hire trucker. It covers your liability for cargo that is lost or damaged due to causes such as fire, collision, or striking of a load. If your load is accidentally dumped on a roadway or waterway (removal expenses coverage), is included in the cargo policy and pays for the cost to remove debris or extract pollutants caused by the debris. The cargo policy may also pay for costs related to preventing further loss to damaged cargo, legal expenses in the defense or settlement of claims’ and even freight charges the customer loses because of not delivering a load (earned freight coverage).

Who Needs Motor Truck Cargo Insurance?

You may be required to carry cargo coverage by federal law, a freight broker, or a risk manager of a shipper that you contract to haul freight for. Cargo coverage pays when you are responsible for damage to, or loss of, cargo due to a peril covered by your cargo policy.

Limits, Deductibles, and Other Details

When you select motor truck cargo insurance, you have to select a limit for your coverage. This limit determines the maximum amount your insurance company will pay for damaged or destroyed cargo. You also need to choose a deductible. A deductible is the amount you agree to pay out of pocket when you have a claim. Choosing a higher deductible is an easy way to lower the price of your insurance, but be sure you choose a deductible that you can afford to pay out of pocket at any time.

Exceptions and Restrictions

Motor truck cargo insurance is only available for for-hire trucking risks on policies with one or more of the following body types: dump truck, tractor, most trailers, box trucks, cement mixers, cargo vans, dually pick-ups, flatbeds and car haulers.

Motor truck cargo insurance is not available on garbage trucks, limos, hearses, buses, passenger vans or ice cream trucks. The following commodities may be excluded from coverage:

  • Art, jewelry, money, or paper
  • Contraband, pharmaceuticals, tobacco, alcohol
  • Live animals
  • Property while in custody of any other carrier
  • Property or goods owned by the insured
  • Property not under Bill of Lading
  • Storage greater than 72 hours
  • Shipping containers
  • Explosive or radioactive material