Cargo · Brokerage
For Truckers & Motor Carriers
Cargo Insurance for For-Hire Truckers and Motor Carriers.
The moment you sign a bill of lading, federal law holds you strictly liable for the freight. Under the Carmack Amendment to the Interstate Commerce Act, motor carriers are presumed responsible for cargo loss or damage from the point of pickup to delivery. The burden is on you to prove you didn’t cause it.
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What Cargo Insurance Covers
Coverage triggers when you take possession of the freight and runs until delivery. Here’s what a standard motor truck cargo policy typically responds to:
Collision and overturn
What it pays
Freight damaged or destroyed in a truck accident
Notes
Regardless of fault
Fire and explosion
What it pays
Freight lost to fire or explosion during transit
Notes
Includes fire from mechanical failure
Theft
What it pays
Freight stolen from a secured vehicle
Notes
Subject to unattended vehicle clause; see exclusions
Water damage
What it pays
Freight damaged by weather-related water ingress
Notes
Flooding may be excluded depending on policy form
Debris removal
What it pays
Cost to remove cargo debris from a roadway after a loss
Notes
Often included; confirm per policy
Pollution cleanup
What it pays
Cleanup costs from spilled cargo classified as a pollutant
Notes
Coverage varies significantly by carrier
Sue and labor
What it pays
Costs to protect freight from further damage after a covered loss
Notes
Example: hiring a salvage crew after a partial loss
Earned freight charges
What it pays
Compensation for freight charges lost when cargo can’t be delivered
Notes
Not included in all forms; confirm at submission
The care/custody/control trigger is worth understanding. Coverage attaches when you take legal responsibility for the freight, typically when you sign the bill of lading or take physical possession at the shipper’s dock. It ends when the freight is delivered and signed for. Loading and unloading falls in a grey zone: some policies cover it, some exclude it when loading is performed by the shipper’s staff rather than your driver. Read the form.
What Cargo Insurance Doesn’t Cover
Knowing the exclusions matters as much as knowing what’s covered. Most cargo claims that get denied come down to one of the following.
Unattended vehicle theft
How to address it
Confirm the policy’s definition of ‘unattended’ and ‘secured’ before binding
Refrigeration breakdown
How to address it
Add a refrigeration breakdown endorsement for temperature-sensitive freight
Inherent vice
How to address it
No fix; understand which commodities carry this risk (spoilage, corrosion)
Improper loading by shipper
How to address it
Document load condition at pickup; note pre-existing damage on the BOL
Acts of God
How to address it
Varies by carrier form; confirm at submission
Cargo not on the bill of lading
How to address it
Keep shipping documents accurate and complete
High-value commodities
How to address it
Specialty cargo coverage or endorsements available for some classes
Pharmaceuticals, tobacco, alcohol
How to address it
Often excluded outright or subject to strict sublimits and conditions
Live animals
How to address it
Requires specialized livestock coverage, not standard MTC
The unattended vehicle clause is the exclusion that catches operators most off guard. Cargo theft is a significant and rising problem in US freight. Most standard MTC policies have language that voids the theft claim if the truck was left in a non-secure location. The definition of “secure” varies by carrier. Some require the vehicle to be in a locked building or fenced yard. Others allow street parking if certain conditions are met. This is a form-comparison item, not a detail to assume. The refrigeration breakdown exclusion is the other major gap for reefer operators. A standard cargo policy covers spoilage caused by a covered peril (the reefer unit breaks down because the truck was in a collision), for example: it does not cover spoilage from a standalone mechanical failure of the refrigeration unit. That requires a separate refrigeration breakdown endorsement. If you haul temperature-sensitive freight, this endorsement is not optional.
Commodity Classes
Commodity Classes and How They Affect Coverage
Not all freight is treated the same at the underwriting level. Your commodity class affects your eligibility, your rate, and the exclusions that apply.
Dry van general freight
The baseline. Standard goods without temperature requirements, high-theft classification, or hazardous material designations. Most carriers will write this class at standard rates. Limits of $100,000 are common; some brokers require more depending on average load value.
Temperature-sensitive freight
Produce, dairy, pharmaceuticals, frozen food — requires a reefer breakdown endorsement to cover the most common type of spoilage loss. Without it, you’re only covered if the spoilage results from a collision or other named peril. Underwriters pay close attention to your reefer maintenance records. A carrier with documented refrigeration service history has a meaningfully different risk profile from one that can’t demonstrate unit maintenance.
High-theft freight
Electronics, mobile phones, clothing, footwear, and high-value consumer goods is one of the most closely underwritten commodity classes. Cargo theft targeting these loads runs into hundreds of millions of dollars annually. Carriers apply sublimits, tighter unattended vehicle language, and sometimes require specific security conditions (driver accompaniment, GPS tracking, truck stop restrictions) before they’ll bind. Some carriers won’t write electronics at all. Speak to our team before committing to a lane with high-theft freight to confirm your coverage terms respond the way you expect.
Flatbed and heavy haul freight
Comes with its own set of policy conditions around load securement. A claim arising from cargo that falls or shifts because it wasn’t properly strapped, chained, or blocked can be excluded as an operator error rather than a covered loss. Standard industry securement requirements apply, and your carrier will expect compliance. Some policies explicitly require adherence to FMCSA load securement regulations as a condition of coverage.
Household goods
The one class where FMCSA mandates cargo coverage. Carriers hauling household goods under federal authority must maintain at least $5,000 per vehicle and $10,000 per occurrence in cargo coverage. These minimums are low relative to the actual value of most household goods shipments, and most operators carry significantly higher limits.
What Limits Do You Actually Need?
The FMCSA cargo insurance mandate is narrow. It applies only to household goods carriers. For every other freight class, cargo limits are set by shipper and broker contracts, not federal law.
That said, the contractual requirements are real and binding. Most freight brokers require a minimum of $100,000 in motor truck cargo coverage before they’ll tender a load. For high-value freight, the requirement climbs. Electronics and pharmaceutical shippers often require $250,000 to $500,000. Some larger shippers set their own minimums above what the broker requires, so pulling the insurance requirements section from any shipper or broker packet before you bind tells you exactly what limit to match.
The mistake most operators make is buying the minimum limit that gets them a COI without checking whether that limit actually covers the freight they’re hauling. A $100,000 limit doesn’t help much on a load worth $300,000. Your owner-operator insurance requirements page covers how cargo limits fit into a full program for operators running their own authority.
The deductible decision is where operators have the most control over premium. Higher deductibles lower your premium meaningfully; a $2,500 deductible typically costs less than a $1,000 deductible. The tradeoff is cash exposure per claim. Most carriers offer multiple deductible tiers, and your broker should model the premium difference before you decide.
$100K
Most common broker-required minimum for motor truck cargo.
$250K–$500K
Required by electronics and pharmaceutical shippers.
$5K/$10K
FMCSA minimums for household goods carriers (per vehicle/per occurrence).
Your broker contracts dictate your cargo limit, not just regulation. Speak to our team to confirm what your lanes require.
Process
How Rosella Places Cargo Coverage
Cargo insurance looks simple on the surface. Every carrier writes it, every trucker needs it, and the COI requirement is clear. The complexity is in the form.
We compare cargo forms, not just premiums
Carrier forms differ substantially on the three details that matter most in a claim: the unattended vehicle clause definition, the refrigeration breakdown trigger, and how high-theft commodities are sublimited. A lower premium with a stricter unattended vehicle clause or no reefer breakdown endorsement isn’t a better deal. It’s a gap that shows up at claim time.
Form differences flagged before you bind
Rosella compares cargo forms across carriers, not just premiums. For operators running mixed commodities or switching lanes, we flag where the form differences create exposure before you bind. For fleet coverage across multiple units, cargo can be written as a blanket limit across the fleet or scheduled per unit depending on how your freight mix is structured.
COIs when the broker needs them
Certificates of insurance are generated in under two minutes, day or night. When a broker is holding a load and needs your COI immediately, that’s not a minor convenience.
Frequently Asked Questions
Get a quote
Tell us about your cargo — commodity class, average load value, broker requirements — and we’ll compare carrier forms and come back with options.
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Ready to Place Cargo Coverage?
Tell us what you haul, what limits your brokers require, and whether you’re running any specialty freight classes. We’ll review your commodity class, confirm what your broker contracts require, and compare carrier forms before you bind.