What this coverage is
Motor truck cargo insurance helps protect the goods a trucking operation transports for others. It responds when covered cargo is lost or damaged in transit due to causes such as collision, fire, or theft, subject to policy terms.
Cargo coverage is distinct from the liability and physical-damage coverage on the truck itself. Shippers and brokers frequently require carriers to maintain cargo coverage before tendering freight.
Who commonly needs it
Motor carriers, owner-operators, and freight haulers commonly carry cargo coverage, and it is often a contractual requirement to haul for shippers and brokers.
Where this coverage commonly fits
Contract-driven — coverage that is often required by contracts, clients, landlords, or lenders. Motor truck cargo is commonly required by shipper contracts and broker agreements for for-hire carriers.
- For-hire trucking operations
- Owner-operators
- Freight and logistics carriers
- Warehousing operations that transport goods
- Agricultural haulers
What it may cover
- Cargo damaged in a covered collision or overturn
- Cargo lost to covered fire or theft
- Loss or damage in transit, subject to commodity terms
- Debris removal and certain related expenses, subject to limits
- Refrigerated cargo breakdown, when reefer coverage is added
What it typically excludes
- Cargo types specifically excluded by the policy
- Loss from improper packing or loading, in many cases
- Contraband or illegal goods
- Ordinary leakage, spoilage without a covered cause, or wear
- Loss above selected limits
Hypothetical claim scenarios
These illustrative examples are for general understanding only. Coverage depends on the specific policy terms, conditions, and exclusions.
Collision damages freight
A truck is involved in a collision and the freight is damaged. Motor truck cargo coverage may help with the covered loss, subject to policy terms.
Cargo theft
A loaded trailer is stolen from a rest stop. The policy may help respond to the covered cargo loss, subject to limits and deductibles.
Refrigeration failure
A reefer unit fails and perishable cargo spoils. With reefer breakdown coverage, the policy may help, subject to terms.
What commonly affects cost
- Type and value of commodities hauled
- Operating radius and routes
- Loss-prevention and security measures
- Driver experience and claims history
- Selected limits and deductibles
How much does it cost?
On average, many businesses pay roughly $400–$1,800 per year, depending on cargo type and limits for motor truck cargo insurance. That figure is a general national average only — your actual premium is set during underwriting.
- Motor Truck Cargo Insurance$400–$1,800 per year, depending on cargo type and limits
These are general national averages shown for comparison only — not a quote. Actual premiums vary widely with underwriting and depend on the factors above and the specifics of your business, including size, revenue, location, claims history, and the limits you choose. See how we estimate costs.
Industries where this coverage is common
Coverage needs vary business to business — most companies consider this protection regardless of industry. These are simply the industries where we see it most often.
See how this coverage works in your industry
A few examples from the business types we cover — this coverage applies well beyond the industries shown here.
Don't see your business type? Browse all industries we cover — coverage recommendations are tailored to every operation.
Frequently asked questions
Does my commercial auto policy cover cargo?
Commercial auto generally covers the vehicle, not the freight. Motor truck cargo insurance is commonly used to cover the goods being transported.
Is cargo insurance required?
While requirements vary, shippers and brokers frequently require carriers to maintain cargo coverage before tendering freight.
Are all commodities covered?
Policies commonly exclude certain commodities or apply special terms. It is important to confirm that the goods you haul are covered.
Does cargo insurance cover refrigerated loads?
Refrigerated cargo breakdown is commonly addressed by adding reefer coverage, which can help when a refrigeration failure spoils perishable freight.
What causes claims to be denied?
Common issues include excluded commodities, improper loading or packing, and failure to meet security or documentation requirements. Review policy conditions carefully.
How do I get a quote for this coverage?
Call The Southern Agency at 1-800-777-1872 or request a quote online, and an advisor can help tailor coverage to your business.
Related coverages
- Crime Insurance Coverage for losses from employee dishonesty, theft, forgery, and fraud.
- Liquor Liability Insurance Liability coverage for businesses that sell, serve, or furnish alcohol.
- Environmental Liability Insurance Coverage for pollution conditions and environmental cleanup liability.
- Garage Liability Insurance Specialized liability coverage for auto dealers, repair shops, and service garages.