Transportation & Logistics Insurance

Industry overview

Transportation and logistics businesses move goods and people across roads and supply chains, putting vehicles and freight at the center of their risk. Every mile driven carries auto-liability exposure, and every load carries the value of someone else's cargo.

These operations also juggle drivers, schedules, and contractual obligations to shippers and brokers. Insurance for the sector commonly combines commercial auto and motor truck cargo with workforce and liability coverage tailored to a mobile, deadline-driven business.

Common business types

For-hire trucking and owner-operators
Freight brokers and 3PLs
Courier and last-mile delivery
Moving and relocation companies
Bus and passenger transport
Warehousing and distribution carriers

Common risks

Auto liability

Operating vehicles creates significant injury and property-damage exposure on the road.

Cargo loss

Freight can be damaged, lost, or stolen in transit.

Driver safety

Long hours and demanding schedules contribute to accident and injury risk.

Catastrophic accidents

Large-vehicle accidents can produce severe, high-cost claims.

Contractual requirements

Shippers and brokers commonly require specific cargo and liability limits.

Regulatory compliance

Transportation operates under filing and safety requirements that affect coverage.

Common insurance requirements

Carriers commonly must meet auto-liability filing requirements and carry motor truck cargo coverage to haul for shippers and brokers, frequently at limits set by contract. Operations with employees need workers compensation, and the catastrophic potential of large-vehicle accidents often makes umbrella coverage important.

Recommended coverages

How much does it cost?

There is no single price for transportation & logistics insurance — the total depends on which of these coverages you carry and the specifics of your business. As a rough guide, here are general national averages for the coverages this industry commonly needs.

Business Auto Insurance

$1,500–$3,000 per vehicle per year
Motor Truck Cargo Insurance

$400–$1,800 per year, depending on cargo type and limits
Workers Compensation Insurance

$500–$3,000 per year, driven largely by payroll and job class codes
Umbrella / Excess Liability Insurance

$400–$1,500 per year per $1M of additional limit
General Liability Insurance

$500–$1,500 per year for many small businesses

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.

Get your real price Cost guidance last reviewed June 2026

Hypothetical claim examples

Highway accident

A truck is involved in a multi-vehicle accident. Commercial auto, and potentially umbrella coverage, may help respond to the resulting claims, subject to policy terms.

Cargo theft

A loaded trailer is stolen. Motor truck cargo coverage may help respond to the freight loss, subject to limits.

Driver injury

A driver is injured during a delivery. Workers compensation may help with medical care and lost wages, subject to state rules.

Frequently asked questions

Does commercial auto cover the freight I haul?

Commercial auto covers the vehicle, not the cargo. Motor truck cargo insurance is commonly used to cover the goods being transported.

Why do carriers carry umbrella coverage?

Large-vehicle accidents can produce claims that exceed primary auto limits, so umbrella coverage adds protection above the underlying policy.

Are cargo limits set by contract?

Shippers and brokers frequently specify required cargo limits, and carriers commonly arrange coverage to meet those terms.

Do freight brokers need different coverage than carriers?

Brokers face contingent and professional exposures that differ from asset-based carriers, so their programs are structured accordingly.

Does refrigerated freight need special coverage?

Refrigerated loads commonly require reefer breakdown coverage added to cargo coverage to address spoilage from a refrigeration failure.

How do I get a quote for my business?

Call The Southern Agency at 1-800-777-1872 or request a quote online, and an advisor can help with coverage tailored to your specific business type.

All Transportation & Logistics business types

Get covered for any of the 61 business types in this industry.