What Is Motor Truck Cargo Insurance and Why You Need It

What motor truck cargo insurance covers

Motor truck cargo insurance protects the freight you haul against loss or damage from causes like collision, fire, theft, and overturn. If a shipment is destroyed in an accident, cargo coverage — not your liability policy — is what pays the claim.

How much coverage do you need?

Most brokers require a minimum of $100,000 in cargo coverage, but the right limit depends on the value of what you haul. If you move electronics or high-value freight, you may need significantly more.

Common exclusions to watch

Many policies exclude certain commodities, unattended vehicle theft, or refrigeration breakdown unless you add reefer breakdown coverage. Always read the commodity and exclusion sections before you assume a load is covered.