Cargo Insurance
Cargo insurance (also called motor truck cargo insurance) covers the freight a carrier is transporting in the event of theft, damage, or loss during transit. FMCSA requires a minimum of $5,000–$10,000 cargo coverage, though brokers commonly require $100,000.
In Depth
Cargo insurance protects the carrier from liability for damaged or stolen freight. The FMCSA minimum is low — most brokers and direct shippers require $100,000 in cargo coverage, and loads with high-value electronics or pharmaceuticals may require $250,000 or more.
Cargo insurance premiums depend on commodity type (electronics and clothing carry higher rates due to theft risk), operating region, and claims history. Annual premiums typically run $3,000–$8,000 for a single truck with $100,000 coverage.
Cargo claims can be expensive and complex. Understanding your policy's exclusions is critical — many policies exclude improper packaging, inherent vice (product defects), and refrigeration breakdown for reefer loads.
Usage Example
Example: 'The broker required $100,000 cargo insurance. When a pallet fell in transit, my cargo policy covered the $4,800 damage claim.'
Related Calculators
Related Terms
Liability Insurance
Liability insurance in trucking covers bodily injury and property damage caused by the carrier's vehicle to third parties. FMCSA requires a minimum of $750,000 in liability coverage for general freight carriers in interstate commerce.
Primary Insurance
Primary liability insurance is the foundational commercial auto liability policy required by FMCSA for carriers operating in interstate commerce. It covers bodily injury and property damage when the truck is under dispatch and actively engaged in commerce.
Bobtail Insurance
Bobtail insurance (also called non-trucking liability) covers a semi-truck when it is being driven without a trailer and outside of active dispatch — such as driving home after a delivery or repositioning to a pickup. It fills the gap that primary insurance does not cover.
Carrier
In trucking, a carrier is the licensed motor carrier (company or owner-operator) that physically transports freight using its own equipment under its own DOT/MC authority.
Frequently Asked Questions
How much cargo insurance do I need?
FMCSA requires $5,000–$10,000 minimum, but most brokers require $100,000. High-value freight may require $250,000 or more.
What does cargo insurance not cover?
Common exclusions include improper shipper packing, inherent product defects, and acts of God. Read your policy exclusions carefully.