Motor truck cargo insurance, explained
Plenty of new carriers are surprised to learn that their auto liability policy — even at the full $1 million federal minimum — does nothing for the freight sitting in their trailer. That's a separate job, and it belongs to motor truck cargo insurance. It's also the coverage that stands between you and a broker: most won't hand you a load without proof of it. Here's what cargo coverage does, where the limits come from, and the fine print that actually matters.
What cargo covers — and what auto liability doesn't
Motor truck cargo insurance covers the freight you're hauling against things like theft, damage, fire, and collision while it's in transit. If the load is destroyed in a wreck, stolen off the trailer, or ruined by a fire, cargo coverage is what pays to make the freight owner whole. It's coverage for someone else's property that's in your care while you move it.
The critical distinction: auto liability covers the bodily injury and property damage your truck causes to OTHERS — other vehicles, people, roadside property. It explicitly does not cover the load you're carrying. So a carrier can have a perfect $1M liability policy and still owe the full value of a destroyed shipment out of pocket if they skipped cargo coverage. Liability protects the public; cargo protects the freight. You need both, and they don't overlap.
Why $100k is the broker-contract norm
Most broker and shipper agreements specify a minimum cargo limit, and $100,000 is the number you'll see again and again. It's become the de facto standard for general freight — high enough to cover the value of a typical full truckload, low enough to be affordable for an owner-operator. When a broker's contract says you need cargo coverage, $100k is usually what they're asking for, and they'll want to see it on your certificate, often with naming requirements that list them appropriately.
That said, $100k isn't universal. If you haul high-value freight — electronics, certain machinery, pharmaceuticals — the real value of a load can blow well past $100k, and you'll need a higher limit to match what you actually carry. The number on the contract is a floor, not a guarantee that it's enough for your freight. Carrying too little cargo coverage means the gap between your limit and the load's value comes out of your pocket.
Exclusions, excluded commodities, and reefer breakdown
Cargo policies are tailored to what you actually haul, and they come with an excluded-commodity list — categories the policy won't cover. Common exclusions include things like money, jewelry, live animals, and certain high-theft or high-value targets, unless specifically scheduled and endorsed. If you haul something outside what your policy contemplates, you may not be covered, so the commodities you list at quoting time genuinely matter.
For refrigerated freight, there's a specific landmine: standard cargo coverage often excludes loss from reefer breakdown — when the refrigeration unit fails and the load spoils. Covering that requires a reefer-breakdown endorsement, usually with its own conditions (like maintenance records and the unit being set and running properly). If you run a reefer and skip that endorsement, a single warm load of spoiled product can be a total uninsured loss. This is exactly the kind of detail Mira flags before it bites.
Deductibles, and why brokers insist on it
Like most coverage, cargo carries a deductible — the amount you pay before the policy responds. A higher deductible lowers your premium but means more out of pocket on a claim, so it's worth matching to the value and frequency of the freight you move. Theft-specific deductibles can also differ from collision or damage deductibles, so read how yours is structured.
The reason brokers are so firm about cargo coverage is straightforward: when a broker tenders a load, they're answerable to the shipper for that freight. If it's lost or damaged in your trailer and you can't cover it, the broker is exposed. Your cargo policy is what protects them from that — which is why they verify it before tendering freight and won't make an exception. Carrying solid cargo coverage isn't just compliance; it's what makes you a carrier brokers will actually book. We're an agency, not a carrier — we'll match your cargo limit and endorsements to what you really haul and what your broker contracts require, and a licensed producer reviews it before anything binds.
01Doesn't my truck's liability insurance cover the freight I'm hauling?
No. Auto liability covers the injury and property damage your truck causes to others — it does nothing for the load in your own trailer. The freight is covered by motor truck cargo insurance, a separate line. A carrier can have a full $1M liability policy and still owe the entire value of a destroyed shipment if they didn't carry cargo coverage.
02How much cargo coverage do I need?
Most broker and shipper contracts set a minimum of $100,000, which is the norm for general freight. But that's a floor — if you haul high-value commodities like electronics or machinery, a single load can exceed $100k, and you'll need a higher limit to match the real value. Carrying too little means the gap between your limit and the load's value comes out of your pocket.
03Is reefer breakdown covered by standard cargo insurance?
Often not. Standard cargo policies frequently exclude loss from refrigeration-unit breakdown, so covering spoiled temperature-controlled freight usually requires a specific reefer-breakdown endorsement — typically with conditions like maintenance records and the unit being properly set. If you run a reefer, this is a gap worth closing before a warm load proves the point.
04Why won't brokers tender me a load without cargo insurance?
Because the broker is answerable to the shipper for the freight. If a load is lost or damaged in your trailer and you can't cover it, the broker is on the hook. Your cargo policy protects them from that exposure, so they verify it before tendering and won't make exceptions. Solid cargo coverage is part of what makes you a carrier brokers will book.