Commercial Trucking Insurance
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Motor truck cargo insurance

Motor truck cargo (MTC) insurance covers your shipments in the event of a collision, fire, or theft. Trucking companies often need this coverage to comply with laws and sign contracts with clients.

What is motor truck cargo insurance?

Motor truck cargo insurance, also called commercial freight insurance or cargo truck insurance, is specifically designed for businesses in the trucking and transportation industries. It's a type of inland marine insurance that covers your cargo during loading, unloading, and transit.

This insurance policy covers a wide range of vehicles and shipments, such as:

Cargo insurance provides coverage in the event of stolen, damaged, or destroyed cargo. For example, a dump truck might get into an accident and spill its load of gravel, or someone might steal computers or other valuables from a parked truck.

A motor truck cargo policy can also pay for related expenses, such as cleanup fees from spills or legal defense costs from disputes over cargo losses.

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What does motor truck cargo insurance cover?

Cargo insurance covers a wide range of incidents from when you load a shipment to when you arrive at its destination. It also covers your legal liability in case a client sues you over lost or undelivered items.

It can help cover losses related to:

  • Accidents that damage cargo during loading and unloading
  • Removal expenses when your cargo is accidentally spilled
  • Lawsuits when a client sues your business for losing their cargo
  • Lost profits from undelivered freight (when your policy includes earned freight coverage)

Most cargo policies cover incidents like fire, theft, accidents, and natural disasters. It can also cover equipment malfunctions, such as a refrigeration breakdown that destroys a shipment of perishable foods. You may need to check with your insurance agent to make sure you have the right coverage options for your business.

Your policy limits determine how much you can be reimbursed for a claim, which means you'll need higher limits for more valuable shipments. It's important to keep accurate records of goods and their value in order to collect on a claim.

What are the different kinds of cargo insurance?

Be aware that there are two types of cargo insurance:

  • Open perils coverage protects against every risk except for those excluded.
  • Named perils coverage only protects against specific risks named in the policy.

Because an open perils policy covers more risks, it generally costs more than named perils coverage.

How much is cargo insurance for trucking?

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Cargo insurance costs an average of $129 per month for trucking companies that buy coverage through Insureon.

The price of trucking insurance depends on several factors, including:

  • Your profession and its unique risks
  • The vehicles you own and their value
  • The cargo you transport and its value
  • Where you operate
  • Annual business revenue
  • Employee driving records
  • Policy limits and deductibles
  • Claims history

Who needs motor truck cargo insurance?

Every trucking business that transports shipments should invest in cargo insurance for financial protection and peace of mind.

Here are the top reasons you may need this coverage:

  • It’s required by law. The Federal Motor Carrier Safety Administration (FMCSA) mandates cargo insurance for motor carriers and freight forwarders who transport household goods.
  • Clients and shippers require coverage. Cargo insurance for truckers is often required in your contracts with clients and shippers. They want to know they're protected financially in the event of an accident.
  • It provides crucial financial protection. Without cargo insurance, your business could end up paying out-of-pocket for a lost shipment, a court battle over missing goods, or debris removal in the event of a spill.

Small businesses typically don't have the resources to pay for expensive losses, which is why it's recommended for businesses of all sizes.

Do private carriers need motor truck cargo insurance?

Yes, private carriers should carry motor trucking cargo insurance. Private carriers who transport their own goods are subject to the same laws as common carriers who offer their services to other businesses.

Even when it's not required by law, truckers may need this coverage to sign contracts with shippers and brokers.

Basically, cargo insurance is part of doing business when you work to transport goods of any kind. At a minimum, you'll want enough coverage to pay for the value of your cargo, in case of a total loss.

What are the exclusions for motor truck cargo insurance?

Cargo insurance doesn't cover every event that could lead to damage or loss. In general, extreme risks and negligence will not be covered.

Common exclusions include:

  • Intentional misconduct
  • Inherent vice (such as spoilage of perishable goods)
  • Market delays
  • Wear and tear
  • War and terrorism

You may need an endorsement for risky or high-value items, such as jewelry, artwork, live animals, pharmaceuticals, or hazardous materials. Certain types of vehicles, such as garbage trucks, limos, and ice cream trucks, may be restricted from buying coverage.

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Motor truck cargo insurance and cargo legal liability insurance both cover financial losses related to your cargo.

Here's a quick breakdown:

  • Cargo insurance covers property losses, such as items damaged by a collision, regardless of fault.
  • Cargo legal liability insurance covers your legal costs when a client sues your business for damaged or destroyed items in your care, custody, or control.

Basically, cargo insurance provides straightforward reimbursement for any damages. Cargo legal liability insurance has more to do with your own responsibility for what happened, and must include proof of negligence.

These responsibilities are often included in the bill of lading, along with the list of goods and their destination.

Other key policies for trucking companies

As part of a comprehensive risk management plan, trucking companies often buy the following additional coverages:

Get motor truck cargo insurance coverage from top carriers

Are you ready to safeguard your trucking business with motor truck cargo coverage or other insurance products? Complete Insureon’s easy online application today to get quotes from top-rated insurance companies. Once you find the right policy, you can begin coverage in less than 24 hours.

Updated: July 11, 2025

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