Motor truck cargo insurance in 2025

What is motor truck cargo insurance?

Motor truck cargo insurance, sometimes abbreviated to MTC, is a type of commercial insurance policy that covers the goods or commodities being transported by a trucker. It protects the motor carrier in case the cargo is damaged, lost or stolen while in transit, loading or unloading.

Under the Carmack Amendment to the Interstate Commerce Act, motor carriers are held strictly liable for cargo loss or damage, meaning you’re considered guilty unless proven innocent, says Jason Odgers, senior vice president at World Insurance, an insurance broker for supply-chain companies.

Without the right insurance policy in place, a trucking company could be stuck covering costly legal fees, judgments or settlements out of pocket. And in today’s legal environment, where sky-high verdicts are increasingly targeting the trucking industry, a single claim could put your entire operation at risk.

How much does motor truck cargo insurance cost?

Motor truck cargo (MTC) policies typically range from $500 to $2,000 per year for $100,000 in coverage, according to trucking information site TruckInfo.net.

Odgers at insurance broker World Insurance gives a slightly higher number, saying premiums are usually between $3,000 and $5,000 per year for minimum policy coverage, with large carrier policies easily costing six figures.

MTC insurance costs can vary widely by company, and factors like:

What you transport
Your industry
The number and types of trucks your business owns
How your trucks are used
Your business location
Whether you operate intrastate (within your state) or interstate (across state lines)
Your driving and claims history
The amount of cargo and liability coverage you take

But, as mentioned earlier, rates vary due to a number of factors, including the insurer you choose. Most don’t publicize their rates, but The Hartford’s website says minimum premiums can be as low as $2,500 with vehicle limits up to and beyond $1 million.

What does motor truck cargo insurance cover?

What a motor cargo insurance policy covers can vary by insurer. It also depends on whether the policy is an all-risk or named peril policy. An all-risk policy covers all losses unless the policy specifically excludes them. A named-peril policy only covers specific perils, such as fire, explosions, weather, theft, vandalism and collisions.

That said, most commercial cargo insurance policies include coverage for:

Replacing damaged, lost or stolen cargo
Debris and pollutant cleanup and removal from a crash site
Towing and reloading the cargo after an accident
Legal fees, court costs and settlement/jury awards
Substitute vehicles
Earned freight charges from failing to deliver the cargo
Contract penalties

You can also customize your policy with optional coverages like:

Refrigeration breakdown coverage
Employee theft
Contingent coverage for freight brokers and forwarders
Cargo corrosion and rust protection
Non-owned trailer coverage
Physical damage coverage for binders, chains, dollies, tarps and other items.

What’s not covered by an MTC policy?

Motor truck cargo insurance companies usually exclude the following types of cargo:

Property not listed on the carriage contract or bill of lading
Live animals
Modular and mobile homes
Valuables such as art, jewelry, metals, stones, money and valuable papers
Cargo under another carrier’s custody
The insured’s own goods or property
Storage that exceeds 72 hours
Radioactive or explosive materials
Property carried without a fee
Shipping containers
Restricted or illegal substances, such as alcohol, tobacco, contraband, pharmaceuticals or marijuana

“It's important to note that specific terms and conditions can vary significantly between different insurance providers and policies,” says Nicole Lawrence, regional vice president at Northland Insurance, a division of Travelers. “Therefore, it's advisable to review the policy details carefully or consult with an insurance professional to understand the exact coverage and exclusions applicable to your cargo insurance policy.”

Also something you should note: Motor truck cargo doesn’t cover buses, motor homes, hearses, limos, garbage trucks, passenger vans or ice cream trucks.

Who needs motor truck freight insurance?

Commercial truckers and motor carriers who transport goods for others need motor truck cargo insurance coverage.

Transportation companies that own any of the following vehicles should consider these policies:

Tractor-trailers
Box trucks
Cargo vans
Flatbed trucks

It’s especially important if you carry goods across state lines. Motor carriers are automatically liable for freight claims under the Carmack Amendment unless they can prove they weren’t negligent and the cause of loss is one of the following:

An act of God.
An act of war.
An act or default of the shipper.
A public authority action, such as road closures, quarantines or trade embargoes.
Inherent vice, which means the item went bad or got damaged through no one’s negligence, such as cheese spoiling or rotting fruits and vegetables.

How motor cargo insurance works in the real world

Now, let’s take a look at a hypothetical example to see motor cargo insurance in action.

Rob is a 48-year-old independent long-haul trucker based in Indianapolis. He recently took a job hauling $150,000 worth of consumer electronics from Chicago to Atlanta. As an owner-operator with a small fleet of three trucks, Rob had purchased a motor truck cargo insurance policy with a $200,000 coverage limit to meet broker and client requirements.

While driving through Tennessee during a heavy rainstorm, Rob’s truck hit a slick patch of highway and jackknifed off the road. Thankfully, Rob wasn’t injured, but his trailer overturned, and several pallets of electronics were crushed and soaked by rainwater.

Rob immediately contacted the police to report the accident and request traffic and cleanup assistance. He then called his insurance provider to file a claim. The insurer reviewed the accident report, cargo details and shipping contract and confirmed the incident was covered under his policy.

Because the damage was caused by a collision and weather, which were named in his policy, and the cargo was properly secured, the insurer approved a payout of $145,000 to the shipper, minus Rob’s $1,000 deductible. Rob didn’t have to worry about covering the loss out of pocket, and he was able to keep his relationship with the shipper intact.

Thanks to his motor truck cargo insurance, Rob avoided a major financial setback. The coverage helped him meet his client’s contract terms while protecting his business and reputation.

Motor truck cargo insurance companies

Here are a few cargo liability insurance companies offering coverage to trucking businesses:

GEICO: The company offers for-hire truckers motor truck cargo insurance with or without refrigeration breakdown coverage. Trucking business owners can also purchase additional policies, such as general liability, trailer exchange and non-trucking liability coverage.
Progressive: The insurer is a commercial trucking specialist that can provide a policy tailored to the needs of owner-operators and small fleets. It also offers the ability to bundle policies with liability and physical damage and receive 24/7 claims support.
The Hartford: The carrier specializes in small and large transportation businesses. It also provides access to a risk engineering team to help implement loss control strategies to improve facility and safety operations.
Northland: The company offers premier or custom cargo coverage to meet the needs of all trucking businesses, including those with specialized or high-value freight.

Insurance.com has also posted a list of the top 10 commercial vehicle insurers.

How to get a cargo insurance policyTake these steps to get the best motor cargo insurance policy to protect your trucking business:

Understand your needs and risk exposure. Check your broker or shipper's requirements for minimum coverage limits and consider the type of cargo you haul to determine if you need any additional protection, such as refrigeration breakdown coverage for perishable goods.
Gather your information. Before reaching out to insurers, make sure you have your Department of Transportation (DOT) and motor carrier (MC) numbers, vehicle and trailer details, the driver’s license number and history of your drivers, the type of freight you haul, typical routes and your desired coverage amounts and deductibles.
Shop around for quotes. Contact insurance companies or a broker to get at least three quotes to compare coverage limits, exclusions, deductibles, optional coverages and premium costs. Don’t forget to compare companies, considering factors such as the company’s financial strength, customer satisfaction ratings, claims process and experience in the trucking industry.
Review the policy carefully. Policy details can vary by insurer. Check for exclusions like inherent vice, unattended vehicle or improper loading. Make sure your coverage meets or exceeds your client and contact requirements. Read the fine print and ask your agent about any questions or terms that are unclear.
Purchase and finalize coverage. Choose the policy that best balances price and protection. Submit any required documentation, sign the policy agreement and make your initial payment. Get a certificate of insurance (COI) to provide to brokers and shippers.
Keep your policy up to date. Update your policy if you change trucks, cargo types or routes. Review your coverage annually to ensure it continues to meet your business needs. Maintain records of claims and COIs for audit and compliance purposes.

What our expert says

Q: Are trucking companies held liable for cargo loss?

Jason Odgers Senior vice president at World Insurance

"Under the Carmack Amendment to the Interstate Commerce Act, motor carriers are held strictly liable for cargo loss or damage, meaning you’re considered guilty unless proven innocent."

Q: Do motor truck cargo insurance policies vary from one insurer to the next?

Nicole Lawrence Regional vice president at Northland Insurance, a division of Travelers

"It's important to note that specific terms and conditions can vary significantly between different insurance providers and policies. Therefore, it's advisable to review the policy details carefully or consult with an insurance professional to understand the exact coverage and exclusions applicable to your cargo insurance policy."

Frequently asked questions

Is motor truck cargo insurance required by law?

No. However, brokers and shippers typically include motor cargo insurance requirements in their agreements. “Additionally, certain states or regions may have specific regulations that mandate cargo insurance for commercial trucking operations,” says Northland Insurance’s Lawrence.

Does hull insurance cover cargo?

No. Hull insurance usually covers aviation and marine vessels, not the cargo they haul. Aviation and marine companies that haul goods should consider marine cargo insurance, which is similar to motor cargo insurance, that protects truckers against damage or loss of their cargo during transit or loading.

What is the difference between motor truck cargo and transportation coverage?

Motor cargo insurance protects the carrier, while transportation coverage protects the owner of the freight. Motor truck cargo insurance covers goods-for-hire truckers who transport for others, protecting them if the cargo is lost or damaged while in their care. Transportation insurance is for shippers or businesses that own the goods, insuring their products during transit, regardless of who is transporting them.