Motor truck cargo insurance: what it covers, and what it leaves out
Cargo insurance, in trucking called motor truck cargo insurance, pays when the freight you haul is lost or damaged while in your care, for example in a crash, a fire or a theft. Federal law requires it only for household goods movers; for other freight, brokers and shippers make it a condition of giving you loads.
Contents
The short version
- It protects the goods, not your truck and not other people's property.
- The law asks for it only from household goods carriers: $5,000 per vehicle, $10,000 per occurrence.
- The limit per load is set by your contracts; the exclusions are set by your policy, and they vary.
- Temperature loss in a reefer usually needs a separate refrigeration breakdown option.
What is cargo insurance in trucking?
When you accept a load, you take responsibility for it until delivery. For interstate shipments, the Carmack Amendment makes the carrier liable for "the actual loss or injury to the property" it transports (49 U.S.C. 14706), and gives shippers at least nine months to file a claim. Motor truck cargo insurance is the policy that pays those claims on your behalf, up to its limit.
Triple-I classifies motor truck cargo as a form of inland marine insurance, describing it as coverage that "keeps clients' goods protected while your business transports and delivers them" (Triple-I, inland marine). It sits apart from your auto liability policy: liability pays for other people's injuries and property, cargo pays for the freight on your trailer.
"Freight insurance" is used loosely. Some contracts use it to mean the carrier's cargo coverage; other policies sold under that name may be bought by a shipper or broker for the goods themselves. When an agreement asks for "freight insurance", ask which one it means and what limit it expects on your certificate.
What does cargo insurance coverage pay for?
Policies differ, so take these as the items commonly offered rather than a guarantee. Progressive, as one example, lists on its motor truck cargo page:
- Lost or damaged cargo from covered events such as fire, collision and theft.
- Debris removal: the cost of clearing damaged freight after an accident.
- Sue and labor: reasonable costs you incur to protect the load from further damage after a loss.
- Earned freight: the freight charges you lose when the load cannot be delivered.
Refrigeration breakdown
Spoilage caused by a reefer unit failing is not the same risk as a crash or a fire, and insurers can treat it as a separate option. Progressive sells refrigeration breakdown coverage for "losses from spoilage or changes in temperature", and an additional option for driver error in reefer trucks. If you haul produce, meat or pharmaceuticals, check that the option is on the declarations page, not just mentioned in the quote.
What does motor truck cargo insurance exclude?
The exclusions decide whether a claim gets paid, and they are where policies differ most. The list below shows the ones one major insurer, Progressive, publishes for its own cargo coverage. Yours may be broader or narrower: read the policy form.
| Exclusion or restriction (Progressive) | What it means for you |
|---|---|
| Art, jewelry, money or paper; contraband; explosive or radioactive material | High-value and specialty loads need specialized cover, or must be declined |
| Cargo stored for more than 72 hours | A loaded trailer left in a yard over a long weekend may fall outside coverage |
| Live animals, unless death occurs or is made necessary within 24 hours | Livestock haulers need to check the exact trigger |
| Items not listed on the shipping documents | Check the bill of lading against what is actually loaded |
| Pharmaceuticals, tobacco and alcohol (beer and wine excepted) | Theft-targeted commodities often need to be declared or scheduled |
Other conditions worth checking in any cargo form: unattended-vehicle or theft conditions (for example, requirements on locks or parking), commodity lists that restrict what you may haul, and the radius you declared when you bought the policy.
If a commodity is excluded or missing from your policy's list, a loss on that load may not be covered at all. When a broker offers a load outside your usual freight, check the commodity against your policy before you accept it.
Who requires cargo insurance?
Federal law: household goods only
For household goods carriers, 49 CFR 387.303T(c) sets the cargo minimum at $5,000 for loss or damage on any one vehicle and $10,000 for any one time and place. The insurer files Form BMC-34 (or a BMC-83 surety bond) with FMCSA, alongside the liability filing. For general freight, FMCSA's filing chart lists no cargo requirement.
Brokers and shippers: the real requirement for most owner-operators
Brokers and shippers write their cargo requirement into their carrier agreements: the minimum limit per load and, depending on the agreement, other conditions such as a deductible cap or how the certificate must be issued. Progressive notes that the limit "can be set by the sender or receiver". We do not publish a "standard" broker cargo limit because none is set by any rule; read each agreement and keep a list of what each one asks.
Leased onto a carrier
When you run under a carrier's authority, the shipper's claim is against that carrier, and how much of it can come back to you depends on the lease: 49 CFR 376.12(j)(3) requires it to state when the carrier can deduct cargo damage from your pay. HUB International describes cargo coverage for owner-operators as applying "where the owner-operator has direct cargo responsibility".
How to choose your cargo limit and deductible
- List the agreements. Note the cargo limit and any deductible cap in each broker and shipper agreement you plan to use.
- Look at your freight. Estimate the value of a typical full load and of your most valuable one. The limit applies per load or per occurrence, not per year.
- Match the policy to the higher of the two. A limit that satisfies the broker but not the value of your loads leaves the difference on you.
- Pick a deductible you can pay tomorrow. A higher deductible lowers the premium but is paid from your own pocket on every claim.
- Check the commodity list and options. Reefer breakdown, theft conditions and excluded goods matter more than a small premium difference.
Example, not a quote or a rule: an owner-operator hauls dry goods typically worth around $80,000 a load, and their main broker asks for a $100,000 cargo limit. A $100,000 limit covers both. If they start taking loads worth $150,000, the broker's requirement is still met, but a total loss would leave about $50,000, plus the deductible, uninsured. The fix is a higher limit or a per-trip increase, not hoping it never happens.
How cargo fits with your other coverages
Cargo is one line in a one-truck program. It is often quoted together with trucking liability and physical damage on the truck; some insurers apply a single deductible when a loss hits both truck and cargo. When you compare offers, line them up item by item, as explained in our guide to truck insurance quotes. For the full list of lines and who requires each one, see trucking insurance coverages, or answer three questions in the coverage planner.
Sources
- Motor Truck Cargo coverage, Progressive Commercial (insurer), consulted October 20, 2026.
- 49 CFR 387.303T, Security for the protection of the public: minimum limits, eCFR, consulted October 20, 2026.
- 49 U.S.C. 14706, Liability of carriers under receipts and bills of lading, Legal Information Institute, Cornell Law School, consulted October 20, 2026.
- Understanding inland marine insurance, Insurance Information Institute, consulted October 20, 2026.
FAQ
Does cargo insurance pay if my truck is damaged in the same crash?
No. Cargo coverage pays for the freight only. Progressive puts it plainly: cargo insurance does not cover your truck. Damage to the tractor or your own trailer is a physical damage claim, under its own deductible unless your insurer offers a combined one.
Is cargo insurance required by law for general freight?
Not under federal law. The FMCSA cargo filing (BMC-34 or BMC-83) is required only of household goods carriers. For other freight, the requirement comes from the broker or shipper contracts you sign, which is why many for-hire owner-operators with their own authority end up buying it.
What happens if the load is worth more than my cargo limit?
The policy pays up to its limit, minus the deductible, and only for a covered loss. Anything above that can still be claimed from you as the carrier. If you are offered a high-value load, ask your insurer whether the limit can be raised for that trip before you accept it.
I am leased onto a carrier. Do I need my own cargo policy?
It depends on the lease. Under 49 CFR 376.12(j)(3), the lease must state the conditions under which the carrier deducts cargo or property damage from your pay, and give you a written itemization before any deduction. If you can be charged for cargo claims, ask whether your own policy would respond. See leased owner-operator insurance.
Related
- CoveragesTrucking insurance coverages for one truck: what each line pays for, whether the law, a broker, a lender or a lease requires it, and the order to buy them.
- LiabilityTrucking liability insurance explained for one truck: what primary liability pays, the $750,000 federal minimum, CSL vs split limits, MCS-90 and excess.
- Truck insurance quotesGetting a truck insurance quote for one truck: the documents to prepare, how to compare quotes like for like, who sells them, and the traps to check.
Updated October 20, 2026