Motor Truck Cargo Insurance | Class Insurance Agency

Class Insurance Agency, an affiliated office of AIC Insurance

Cargo insurance built around what you actually haul

Motor truck cargo insurance pays when freight in your care is lost or damaged and you are legally responsible for it. The exclusions matter as much as the limit, so we start with your commodities, your trailers and your customers’ contracts.

Call 360-450-2211 or start a quote online. We work in English, Russian, Ukrainian and Romanian.

Is cargo insurance required?

Not by federal law for general freight. FMCSA dropped the cargo insurance requirement and the related filings for most for-hire property carriers in 2011.^[1]
Household goods movers are the exception. They need $5,000 per vehicle and $10,000 per occurrence, and the insurance company files proof on a BMC-34.^[2]^[3] Some states add their own mover cargo filing, such as Washington’s Form H (see Washington trucking insurance).
Your customers require it. Large brokers typically ask for $100,000 in cargo coverage along with $1,000,000 in auto liability. TQL also wants reefer breakdown coverage shown on the certificate when you haul refrigerated loads.^[4]^[5] Most intermodal equipment providers list $100,000 in cargo as well.^[6]

What a cargo policy pays

Cargo insurance is legal liability coverage: it covers your liability for other people’s property you accepted under a bill of lading. The standard form pays the lowest of the repair cost, the replacement cost, the value declared on the bill of lading or the tariff limit.^[7] Many forms add small extras, such as earned freight (up to $2,500 per occurrence in the standard form)^[7] and limited amounts for debris removal and pollutant cleanup.^[8]

Exclusions behind most cargo claim disputes

Reefer breakdown. The standard form excludes spoilage from refrigeration breakdown unless fire, lightning or a vehicle accident caused it. You need a reefer breakdown endorsement, and insurers can require proof of unit maintenance.^[7]^[9]
Theft from an unattended truck. Some forms cover it only if the truck was locked with the windows fully closed.^[8] Handing a load to an impostor, the “fictitious pickup” scam, is excluded as voluntary parting.^[7]
Shortages and handling. Mysterious disappearance, unexplained shortage and loading or unloading damage are common exclusions.^[8]
Packing, delay and wear. Improper packing, delay or loss of market, gradual deterioration and vermin are excluded in the standard form.^[7]
Listed vehicles only. Some forms cover only the trucks on the policy schedule, so add new units right away.^[8]
High-value freight. Many policies exclude or cap electronics, pharmaceuticals, tobacco, liquor, jewelry, live animals and similar loads. Tell us exactly what you haul so the quote fits.

Cargo theft keeps rising

CargoNet counted 2,646 confirmed cargo thefts in the U.S. in 2025, up 18%, with estimated losses of $725 million and an average theft of $273,990. Food and beverage loads were hit hardest, with 708 thefts, up 47%.^[10] Park in secure lots, don’t share load details on social media, and confirm every pickup with the broker or shipper.

Your liability under the Carmack Amendment

Federal law makes the carrier liable for the actual loss to property it hauls.^[11] The shipper must show the goods were in good condition at pickup, damaged at delivery, and the amount of the loss. The carrier then has to prove it wasn’t negligent and that the loss came from an act of God, the public enemy, the shipper, public authority or the goods’ own inherent vice.^[12]

Shippers get at least 9 months to file a claim, and 2 years to sue after a written denial.^[11]
Claims must be in writing with an amount. You must acknowledge them within 30 days and pay, decline or make an offer within 120 days.^[13]
Your contract can cap your liability, and caps such as $100,000 per truckload are common. The contract, not your policy limit, sets what you owe.^[14]

What to have ready for a cargo quote

Three examples of recent loads: commodity, weight and highest value per load
Trailer types (dry van, reefer, flatbed, car hauler) and the reefer unit’s age and service records
Where the truck parks overnight and how loads are secured
Your broker and shipper agreements, especially cargo limits and liability caps
Prior cargo claims and loss runs, if you have been insured before

Frequently asked questions

Does FMCSA require cargo insurance?

Only for household goods carriers, who need $5,000 per vehicle and $10,000 per occurrence filed on a BMC-34. General freight carriers have no federal cargo minimum, but brokers and shippers usually require it.^[1]^[2]

How much cargo coverage do I need?

There is no federal minimum, but $100,000 is the standard requirement at major brokers. Carry more if a single load can be worth more than that.^[4]^[5]

What is reefer breakdown coverage?

An endorsement that covers spoilage when your refrigeration unit fails. The standard cargo form excludes it unless fire, lightning or a vehicle accident caused the breakdown.^[7]

Is theft from a parked truck covered?

It depends on your policy’s theft conditions. Some forms cover theft from an unattended truck only if it was locked with the windows fully closed.^[8]

How long does a shipper have to file a cargo claim?

At least 9 months, and 2 years to sue after the carrier denies the claim in writing.^[11]

Get a cargo insurance quote

Call 360-450-2211 or start your quote. We quote trucking operations in the 48 contiguous states from our office in Vancouver, Washington, Monday to Friday, 7 a.m. to 5 p.m. Pacific.

Related coverage

Sources

General information only, checked September 2026. Rules change; confirm with the agency that issues your permits. Coverage availability, terms and filings depend on underwriting and the policy issued; a quote request does not bind insurance.