Motor Truck Cargo Insurance: Limits, Exclusions, and What Brokers Require
- 4 days ago
- 2 min read
Motor truck cargo covers the freight you are hauling. It is not required by federal law for most general freight, but it is required by essentially every broker load confirmation — which makes it functionally mandatory if you want to move freight.
Standard limits
The market standard is $100,000. Some shippers and commodities require more: high-value electronics, pharmaceuticals, and certain retail freight commonly demand $250,000 or higher. Buying a higher limit than you need wastes premium; buying too little shuts you out of loads.
The exclusions that catch carriers
Unattended vehicle theft — many policies exclude or sublimit theft when the truck is left unattended outside a secured lot
Refrigeration breakdown — reefer breakdown is typically excluded unless you add the endorsement, and it requires documented maintenance
Employee dishonesty and fraudulent pickup — a growing exposure as cargo theft shifts toward fictitious pickups
Contraband and prohibited commodities — hauling something outside your declared commodity list can void the claim
Improper securement — losses traced to inadequate blocking and bracing are frequently denied
How cargo claims actually get paid
Cargo coverage responds on the value of the freight, subject to your deductible and limit. Carrier liability under the Carmack Amendment is a separate legal question from what your policy pays, and the two do not always align. This is why documenting condition at pickup and delivery matters so much.
Reducing cargo theft exposure
Cargo theft has shifted from opportunistic trailer theft toward strategic theft — fictitious pickups, identity spoofing of legitimate carriers, and double brokering. Verifying broker identity, avoiding unsecured overnight parking, and using trailer tracking materially reduce the exposure that underwriters price.
iAgency is licensed in all 50 states and shops your account across Progressive, Geico, Cover Whale, and specialty MGA markets. Send your DOT number, unit list, and driver list to service@iagency.biz or call (469) 501-1071. Most complete submissions come back with a full quote package inside one business day.
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