Freight brokers and shippers ask for a tighter list than most industries: auto liability at $1M, cargo coverage matched to what they haul, the broker named as certificate holder, and increasingly a named driver and radius check. Who this is for: motor carriers, freight brokers, and shippers vetting carriers.
The short version
- Auto liability of $750K is the federal floor for most freight, but $1M is the commercial standard.
- Cargo coverage is separate from auto liability and its limit must match the commodity.
- The federal financial responsibility endorsement protects the public, not the carrier.
- Brokers often require to be listed as certificate holder and to receive notice of cancellation.
- Reefer breakdown and unattended vehicle exclusions are the two cargo gaps that cause disputes.
What a freight broker checks
| Item | Typical requirement | Why |
|---|---|---|
| Auto liability | $1M combined single limit | Commercial standard above the federal minimum |
| Cargo | $100K, higher for electronics or pharma | Must match the value of the load |
| General liability | $1M per occurrence | Non driving operations and premises |
| Trailer interchange | $25K to $50K | Where the carrier pulls another party's trailer |
| Workers compensation | Statutory | Driver injury |
| Certificate holder | The broker, by exact legal name | Their compliance file |
| Notice of cancellation | Requested, often 30 days | Rarely delivered by the insurer, see below |
The federal financial responsibility endorsement, explained plainly
That endorsement guarantees payment to an injured member of the public up to the statutory minimum, even if the policy would not otherwise respond. It is a public protection mechanism, not coverage for the motor carrier: if the insurer pays under it where the policy did not apply, the carrier has to reimburse the insurer. Carriers who think it is a broad backstop are misreading it.
The two cargo gaps that cause fights
- Refrigeration breakdown. Many cargo policies exclude reefer breakdown unless the unit was maintained and set correctly, with records to prove it. Temperature claims are the most disputed in the class.
- Unattended vehicle theft. Theft from an unattended vehicle is commonly excluded or sublimited unless the vehicle was in a secured yard. Loads left overnight at a truck stop are where this bites.
Getting certificates out fast in a fast industry
- Give your broker a standing list of the freight brokers you work with so certificates go automatically at renewal.
- Ask whether your policy can list a blanket description covering broker requirements.
- Keep a current certificate saved and ready to send, since load boards move quickly.
- Tell your broker before adding a new commodity class, because cargo wording follows the commodity.
- Confirm radius and driver schedules match reality, because a mismatch found at claim time is a coverage problem.
Related reading: trucking and transportation insurance.
What this looks like in practice
Illustrative example. It is typical of what we see and is not a promise of how any specific situation would be handled.
The setup: A carrier hauling temperature controlled produce provides a certificate showing $100,000 cargo coverage to a freight broker.
What went wrong: A reefer unit failed overnight and the load spoiled. The cargo policy excluded refrigeration breakdown without maintenance records, which the carrier could not produce.
What it cost: A $64,000 claim was denied and the carrier paid the shipper directly to keep the relationship.
The fix: Ask for reefer breakdown coverage explicitly and keep maintenance and temperature records. The endorsement costs far less than one denied load.
Frequently asked questions
Q: What does a freight broker require on a certificate?
Usually $1M auto liability, cargo coverage matched to the commodity, general liability, workers compensation, and the broker named as certificate holder.
Q: What is the federal financial responsibility endorsement?
A federal endorsement, known in the trade as the MCS-90, guaranteeing payment to injured members of the public up to the statutory minimum. It protects the public, not the carrier.
Q: How much cargo coverage do I need?
Enough to cover the highest value load you haul. $100,000 is a common baseline, but electronics, pharmaceuticals, and high value freight routinely require more.
Q: Why do brokers want notice of cancellation?
So they learn if you lose coverage mid haul. Insurers rarely undertake to notify certificate holders, so most brokers rely on monitoring services that check carrier status continuously.
Q: Does cargo insurance cover a reefer breakdown?
Only if the policy includes it and the maintenance and temperature setting conditions were met. Refrigeration exclusions are the most common cargo claim dispute, so read the wording.
Q: What if a load is stolen from a truck stop?
Many policies exclude or sublimit theft from an unattended vehicle. If you park loaded overnight, ask your broker specifically what your policy says about it.
How Morrow helps with certificates of insurance
Morrow is a licensed independent commercial insurance brokerage that specializes in certificates of insurance and the endorsements behind them. Certificates and cargo wording that hold up with brokers and shippers is the kind of thing we handle every day, for clients across construction, trades, professional services, trucking, real estate, and hospitality, so we know what a compliance reviewer will reject before you send it.
- We issue certificates the same day you ask, and usually within the hour.
- We read the contract first, so the endorsements the certificate reports actually exist on your policy.
- We push back on requirements the market will not issue, and give you language your client will accept.
- We keep a record of who was issued what, so renewals go out before anyone chases you.
Get in touch and we will see how we can help. Send us the contract or the certificate request and we will tell you what your current policy can support and what needs to change. Start at morrowinsure.com or reach the team through the contact options on that page.
One more thing. This article is general information and is not legal advice or a statement of coverage. Certificates report what a policy says, and the policy wording controls in every case. Forms and requirements vary by carrier, by state, and by contract, so have a licensed advisor review your own policy and your own contract before relying on any of it.
Last updated: Reviewed by the Morrow commercial lines team. Last updated August 2026.