Every motor carrier knows they need cargo insurance. Few actually understand what their policy covers — and more importantly, what it excludes. The gap between what fleet owners assume is covered and what's actually covered is where six-figure losses happen. What Cargo Insurance Is Motor truck cargo insurance covers loss or damage to freight while it's in your care, custody, and control. This includes while it's being transported, loaded, unloaded, and temporarily stored in transit. The standard cargo policy covers "all risks" of physical loss or damage, subject to exclusions. This sounds comprehensive — and it is, until you read the exclusions. Standard Coverage A typical cargo policy covers: - Collision or overturn of the vehicle - Fire - Theft (with conditions) - Weather damage (wind, hail, flood) - Loading and unloading accidents - Shifting or falling cargo The Exclusions That Catch People Refrigeration breakdown. Standard cargo policies exclude loss due to mechanical breakdown of refrigeration equipment. If you haul temperature-sensitive freight, you need a reefer breakdown endorsement. Without it, a $200,000 load of pharmaceuticals that spoils because your reefer unit failed is entirely your loss. Unattended vehicle. Many policies exclude or sublimit theft from an unattended vehicle. The definition of "unattended" varies by policy, but generally means the driver is not in or immediately adjacent to the vehicle. If your driver parks at a truck stop overnight and the trailer is stolen, coverage may not apply. Mysterious disappearance. If freight simply goes missing without evidence of theft or damage, some policies won't cover it. This is common with partial loads where a few pallets are unaccounted for at delivery. Insects, vermin, and inherent vice. If the cargo deteriorates due to its own nature (fruit ripening, grain fermenting) or is damaged by pests, that's typically excluded. Improper loading by shipper. If the shipper loaded the freight improperly and it shifts or falls during transit, your cargo policy may exclude the loss. This is a gray area that generates significant litigation. Commodities not listed. Your cargo policy covers specific commodity types listed in your application. If you haul a commodity that's not listed — even once — and a loss occurs, the claim may be denied. Limits and Deductibles Per-occurrence limit. This is the maximum the policy will pay for any single loss event. Standard limits range from $100,000 to $250,000, but high-value freight may require $500,000 or more. Deductible. Typically $1,000–$5,000. Higher deductibles reduce premium but increase your out-of-pocket on small claims. Aggregate limit. Some policies have an annual aggregate — a maximum total payout for the policy year. If you have multiple losses, you can exhaust your aggregate. Shipper and Broker Requirements Most shippers and freight brokers require specific cargo coverage as a condition of tendering freight: - Minimum $100,000 limit (many require $250,000) - Certificate of insurance naming them as certificate holder - Specific commodity coverage matching what you're hauling - Sometimes additional insured status (this is unusual for cargo but does occur) Review your broker agreements and shipper contracts to ensure your cargo coverage meets their requirements. A coverage gap discovered after a loss is the worst possible time to find out. Filing a Cargo Claim When freight is damaged or lost: 1. Document immediately. Photograph the damage, note it on the delivery receipt, and get the receiver's signature acknowledging the condition. 2. Report to your carrier within 24 hours. Late reporting can jeopardize coverage. 3. Preserve the damaged freight. Don't dispose of it until your adjuster has inspected it. 4. Gather documentation. Bill of lading, delivery receipt, photographs, shipper's invoice showing value, and any communications about the load. What Trux Recommends Review your cargo policy annually — not just the limit, but the commodity list, exclusions, and endorsements. As your business evolves and you take on new freight types, your cargo coverage needs to evolve with it. If you haul refrigerated freight, high-value goods, or anything unusual, talk to us about whether your current policy actually covers what you're moving. The answer surprises most fleet owners.