TL;DR: Motor truck cargo insurance covers your legal liability for freight that is damaged, destroyed, or stolen while in your care as a carrier. FMCSA stopped requiring cargo filings for general freight on March 21, 2011, but brokers and shippers require the coverage by contract, most commonly at $100,000 per load. Exclusions like unattended-vehicle clauses decide real claims.
What does motor truck cargo insurance pay for?
It pays for the freight, not the truck. When cargo in your care is damaged in a crash, burned, stolen, or lost off the deck, and you are legally liable as the carrier, the cargo policy pays the owner of the goods. Carrier liability for interstate freight flows from the Carmack Amendment, 49 U.S.C. 14706, which makes carriers responsible for loss or damage to goods they transport, with limited defenses. The policy also typically covers debris removal and pollutant cleanup tied to a covered cargo loss, and freight charges you lose on the ruined load.
Is cargo insurance required by FMCSA?
Not for general freight, and this trips people up. FMCSA eliminated cargo filing requirements for general-freight carriers effective March 21, 2011. Today only household goods carriers and household goods freight forwarders make cargo filings, the BMC-34 certificate with BMC-32 endorsement. What replaced regulation is contract: nearly every broker-carrier agreement and shipper packet requires cargo coverage, most commonly $100,000 per load, and you will not book freight without a certificate proving it.
How much cargo coverage do I need?
Match the limit to the value on your deck, not to the market default. A dry van of paper towels and a load of copper or electronics are different risks wearing the same trailer. If your freight routinely exceeds $100,000, buy a higher limit or the load-specific excess the broker requires. Watch for sub-limits inside the policy too: theft-target commodities, electronics, liquor, seafood, often carry lower internal caps than the headline limit.
| Freight profile | What to check |
|---|---|
| General dry freight | $100,000 standard limit usually fits |
| Electronics, copper, liquor, tires | Theft sub-limits and security requirements |
| Refrigerated goods | Reefer breakdown coverage and temperature terms |
| High-value loads over the limit | Per-load excess cargo or declared value handling |
What exclusions actually bite?
Cargo claims are won and lost in the conditions. The unattended-vehicle clause can void theft coverage if the loaded trailer was left outside a secured lot or without required locks. Commodity exclusions can carve out exactly what you haul, so read the list against your freight mix. Employee dishonesty and mysterious disappearance may be excluded. Temperature claims may require proof the reefer was serviced and set correctly, which is why reefer breakdown is its own coverage conversation. If a broker requires all-risk terms, make sure your form is not a narrower named-perils policy.
How do cargo claims actually work?
The clock starts at delivery. Damage gets noted on the delivery receipt, photos get taken, and the shipper or broker files a claim against you as the carrier, which you tender to your cargo insurer. Under the Carmack framework, claimants generally must file written claims within the time the bill of lading allows, at least 9 months, and carriers must acknowledge and act on claims under federal claim regulations. Your job on the ground: document the load at pickup and delivery, report losses to your insurer immediately, and never sign clean for freight you did not count.
Does cargo insurance cover freight I broker to others?
No. Your cargo policy covers freight you haul as the motor carrier. Loads you hand to another carrier under your broker authority are that carrier's cargo liability, and your protection there is contingent cargo coverage, a separate policy that pays when the hauling carrier's insurance fails or falls short. Companies running both carrier and broker operations need both coverages, mapped to which authority moved each load.
Real questions owner-operators and fleet managers ask
Is $100,000 in cargo insurance required by law?
No. The $100,000 figure is the market standard written into most broker-carrier agreements, not a federal rule. FMCSA ended cargo filings for general freight on March 21, 2011, keeping them only for household goods carriers and forwarders. Contracts, not regulations, set your required limit.
Does cargo insurance cover theft from an unattended truck?
Only on the policy's terms. Unattended-vehicle clauses commonly require locked equipment, secured lots, or specific anti-theft measures for theft coverage to apply. If you haul theft-target freight, get the security requirements in writing and follow them on every load.
Who files the claim when freight is damaged, me or the shipper?
The freight's owner or the broker files against you as the carrier, usually citing Carmack Amendment liability under 49 U.S.C. 14706. You tender that claim to your cargo insurer. Your delivery receipts, photos, and prompt notice to the insurer decide how smoothly it resolves.
Does my cargo policy cover loads I broker out?
No. Brokered loads are the hauling carrier's liability. Contingent cargo coverage is the separate policy that protects your brokerage when the carrier's insurance fails. Dual-authority companies should carry cargo for their trucks and contingent cargo for their brokerage.
What is a reefer breakdown claim?
Spoilage caused by refrigeration unit failure. Standard cargo forms often exclude or restrict it, so reefer breakdown is bought as an add-on with its own conditions, like proof of unit maintenance and correct set points. Haul cold freight without it and spoilage is on you.
Why truckers work with Morrow
- We know the filings. Morrow matches cargo limits and commodity terms to the freight you actually haul, including reefer and theft-target loads.
- New authority is our normal. First-year carriers pay the most and get declined the most. We work with markets that actually want new ventures and we tell you what the first renewal takes.
- Certificates and filings, fast. Certificates of insurance the same business day for most carriers, and federal or state filings submitted electronically so your authority is not sitting in a queue.
- We quote the whole picture. Liability, cargo, physical damage, and the endorsements shippers and brokers actually check for, priced together so nothing is missing when a load is on the line.
- Real people when something goes wrong. A claim, a lapse notice, or a lost certificate gets a person, not a portal.
Related trucking guides
Short answers to the surrounding questions truckers ask next.
- Trucking insurance at Morrow (start here)
- Reefer breakdown coverage
- Primary auto liability for truckers
- Trailer interchange coverage
- Certificates of insurance for truckers
- Insurance you need to get an MC number
- Trucking and transportation insurance overview
This guide is general information, not legal, tax, or insurance advice. Limits, forms, and deadlines change, so verify current requirements with FMCSA before you rely on them. Morrow is a brand name of Afthonea Inc. Last updated: July 2026.