Motor Truck Cargo Insurance
Motor truck cargo insurance, also known as cargo insurance or freight insurance, covers damage to freight in transit. Designed for truckers engaging in for-hire trucking, cargo is an essential coverage. Cargo includes coverage for striking-of-the-load, fire, theft, collision, and more. In addition, endorsements such as reefer breakdown and earned freight coverage may be added to your cargo insurance.
The coverage is a must for for-hire truckers hauling someone else’s property.
What Is Cargo Insurance?
Motor Truck Cargo, also known as Cargo Insurance, provides coverage for freight hauled by an insured semi truck or commercial vehicle on behalf of their clients. Cargo protects your company from damages to freight. However, it also protects your important business relationships by quickly paying out in the event of a covered claim.
Cargo insurance coverage provides financial protection for cargo in transit under a bill of lading. Insurance options cover most incidents, including:
- Fire, lightning, or explosion
- Windstorm or hail
- Collision
- Overturn or derailment
- Collapse of a bridge
- Striking-of-the-load
- Flood
- Theft
- Vandalism
- Earthquake
Some cargo insurance companies provide endorsements for additional coverage including earned freight, replacement of damaged goods, diminished value, constructive total loss, reefer breakdown, and more. An experienced truck insurance agent will provide guidance on the right coverage.
Who Needs Cargo Insurance?
Many freight brokers require truckers to carry cargo liability insurance. Not only does it cover the cost of the cargo, but also cleanup, pollution removal, and more. The financial stakes are simply too high to ignore cargo coverage.
- Cargo vans
- Flatbed haulers
- Tractor trailers/semi trucks
- Auto haulers and car carriers
- Dump trucks
- Hotshot trucks
- Reefer haulers
- Box trucks
- Scrap metal haulers
- and more!
Cargo insurance is a customizable coverage to meet your needs. Your freight broker will often contact your insurance agent for a list of covered cargo commodities prior to booking loads. A thorough conversation with your insurance agent about your cargo needs is essential.
Cargo Coverage Limits and Deductibles
The standard insurance limit for most trucking companies is $100,000. Certain transportation companies may require less coverage such as dump trucks, agricultural haulers, and final mile cargo vans. Other trucking operations such as auto hauling and flatbed may require a higher cargo limit.
Most motor truck cargo insurance policies will provide insurance up to $250,000. Beyond that limit, you may need to consider an excess cargo insurance policy to fill the coverage gap. For example, if you have the maximum cargo limit of $250,000 and you are hauling $300,000 worth of automobiles, you may need to purchase an excess cargo for the additional $50,000 coverage.
Choosing your deductible influences cargo premium. A deductible is the amount of money the policyholder must pay before the insurance company beings paying expenses. A higher deductible means lower insurance premium. The standard cargo deductible is $1,000. You may choose a different deductible to take on more or less risk.
Cargo Insurance Coverage Options
Trucking Insurance Services offers tailored cargo insurance policies including:
- Motor truck cargo insurance: Most for-hire truckers need this coverage to protect their freight during transit. This provides coverage for collision, stolen cargo, fire, vandalism, and more. This coverage is necessary for dry van hauling, flatbed hauling, operating for Amazon Relay, auto hauling, dump truck for a fee hauling dirt, sand, and gravel, and more
- Motor truck cargo insurance with refrigerated breakdown: For-hire truckers hauling refrigerated goods need refrigerated breakdown coverage, also known as reefer breakdown coverage, to insure the contents of the trailer if the refrigeration unit breakdowns due to mechanical or electrical failure. You may need this if haul frozen food, refrigerated plants, seafood, meat, or certain pharmaceuticals.
- Motor truck cargo insurance with total constructive loss and diminished value: Auto haulers transporting new motor vehicles may need constructive total loss and diminished value cargo coverage. Constructive total loss pays out when a damaged vehicle is more expensive to repair than replace. Diminished value pays for the loss in market value due to a covered claim.
Policy Exclusions and Conditions
Cargo insurance policies come with a long list of conditions and exclusions. It is essential to discuss your trucking operation with your insurance agent. Common excluded cargo commodities include:
- Illegal substances: Marijuana, contraband, pharmaceuticals, tobacco, and alcohol
- Private property
- Cargo not on the bill of lading
- Explosive or radioactive material
- Valuables: Precious metals, artwork, jewelry, money, or valuable papers and documents
- Mobile or modular homes
- Storage exceeding 72 hours
- And more
While these are common exclusions, our network of cargo insurance companies may offer endorsements to cover you.
How Much Does Cargo Insurance Cost?
The cost of cargo insurance depends on factors such as the type of cargo you’re hauling, driver history, coverage limits, and loss history. Most general freight haulers may pay $800 to $1,500 per truck for $100,000 cargo coverage. Certain cargo commodities such as motor vehicles, frozen or fresh seafood, or oversize-overweight cargo may be more expensive.
For an accurate cargo quote, please request a quote online or call us at 855-281-2924.
The Trucking Insurance Services Advantage
Our truck insurance agency partners with a vast array of A-rated insurance companies to provide cheap cargo insurance with excellent coverage.
Only pay a single deductible
When the unimaginable happens and your truck, trailer, and cargo are damaged in a covered claim, some insurance companies may require you to pay three deductibles. We offer coverage that combines physical damage and cargo deductibles into a single deductible. This added benefit is not standard on all policies, so ask your truck insurance agent how you can purchase coverage with a single deductible.
We offer hard to place cargo coverage
Standard insurance policies exclude certain cargo commodities such as hard liquor, live animals, marijuana products, tobacco, pharmaceuticals, and art. Our network of insurance carriers can provide tailored insurance coverage for hard to place risks. We write monoline cargo policies to insure your freight no matter the commodity.
Ready to buy cargo insurance?
Start the process of safeguarding your cargo by contacting Trucking Insurance Services. Our team is eager to assist you in finding the right insurance coverage for your trucking company. Contact an experienced trucking insurance agent today at 855-281-2924.
Looking for coverage? Click any of the following links to submit a quote for quick, accurate and affordable rates.