Motor Truck Cargo Insurance

Federal rules don't require cargo coverage for general property carriers. Household goods carriers must carry at least $5,000 per vehicle and $10,000 per occurrence, filed on Form BMC-34 (49 CFR 387.303). For everyone else, broker and shipper contracts set the requirement.

Unattended vehicle, theft, reefer breakdown, high-value commodities (electronics, alcohol, tobacco) and named-commodity lists are where cargo claims are denied. We read them before you bind.

Motor truck cargo covers your legal liability for freight in your care, for example from collision, fire, theft or overturn, up to the policy limit and subject to the policy's exclusions. Common exclusions or limitations include unattended-vehicle theft (check the conditions carefully), certain high-value commodities such as electronics, tobacco, alcohol or pharmaceuticals, and spoilage from reefer failure unless reefer breakdown is added.

Your liability to the shipper is governed by the Carmack Amendment (49 U.S.C. §14706), which generally holds carriers liable for the actual loss or injury to the property unless liability is limited by agreement. Your insurance needs to fit the loads and contracts you actually take.

$100,000 is the most common limit that brokers ask for, but a single trailer of electronics, copper or pharmaceuticals can be worth far more. Check the broker-carrier agreement before you accept a high-value load. Federal law doesn't require cargo coverage for general freight, but household goods movers must file cargo insurance with FMCSA (49 CFR 387 Subpart B).

Reefer and perishables out of Miami and Philadelphia, port containers through Newark and Norfolk, and flatbed steel from Pittsburgh all bring different cargo exposures. Listing your commodities accurately on the application keeps claims from being denied.

Have these ready: your USDOT and MC numbers, the VIN, year and value of each truck and trailer, every driver's license number and date of birth (insurers pull MVRs), commodities with percentages, your radius and states, and 3–5 years of loss runs from prior insurers if you have them.

Underwriters also check your FMCSA record. That covers inspection and out-of-service history and safety ratings (public on SAFER) and crash history. Fixing data errors through FMCSA's DataQs system before you shop can make a real difference.

An agency that works with several trucking markets can compare them. Specialty markets and non-standard insurers accept new authorities and drivers with blemishes that standard carriers decline. See truck insurance cost for what moves price.

Make sure everyone is safe, call police when anyone is injured or vehicles must be towed, and photograph the scene, the vehicles, the load and the seal. Get the other parties' insurance information. Don't admit fault or sign anything except the police and inspection paperwork. Report the claim to your agent or insurer right away; most policies require prompt notice, and a late report can complicate coverage.

Under FMCSA rules (49 CFR 390.15), qualifying crashes must be recorded in your accident register, and drivers involved in certain crashes must be drug and alcohol tested under Part 382. For cargo, keep the bill of lading, delivery receipt notations, reefer download (if any) and photos. Exceptions noted at delivery are often what decides a cargo claim.

Brokers, shippers, warehouses and port equipment providers will ask for a certificate of insurance, often naming them as certificate holder or additional insured. Some also want a waiver of subrogation or specific limits. Send the contract to your agent before you sign, because a promise you make in a contract that your policy doesn't match is your problem, not the insurer's. Common requests include $1,000,000 auto liability, $100,000 cargo, general liability and trailer interchange for drayage.

Most coverage problems come from paperwork, not accidents. Add new trucks and drivers to the policy before they run, remove sold units, report radius or commodity changes, and pay installments on time. A cancellation for non-payment triggers an FMCSA filing cancellation and can take your authority down (see FMCSA insurance requirements). At renewal, request loss runs from your current insurer early so we can shop with them in hand.

Cargo theft tends to cluster around freight hubs and the places trucks sit unattended: truck stops, drop yards and unsecured lots. Many policies set conditions for unattended vehicles, such as locked cabs, kingpin or glad-hand locks, and parking in secured or attended lots. Check those conditions before you leave a loaded trailer overnight, and tell your agent if you regularly haul targeted commodities so the policy is written for them.

• FMCSA – Insurance requirements (49 CFR 387)
• eCFR – 49 CFR 387.303, cargo security for household goods carriers