Motor Truck Cargo (Motor Truck Cargo Insurance): 2026 Guide to Coverage, Limits, Cost & Claims

What Does “Motor Truck Cargo” Mean in Insurance?

Motor truck cargo (MTC) insurance is a commercial cargo policy that can pay for covered loss or damage to a customer’s freight while it is in the carrier’s “care, custody, and control.” That phrase is the trigger for when the policy may respond (and when it won’t), and it’s why the same loss can be covered for one carrier and denied for another.

Think of MTC as freight coverage, not truck coverage: it’s designed to protect the value of what’s in the trailer/box, not the equipment itself.

Plain-English definition

• What it protects: The shipper/broker/customer’s freight you’re hauling (not your tractor).
• When it applies: Most often in transit; loading/unloading coverage may require an endorsement.
• How limits work: Usually per load (example: $100,000 per load), often with sublimits (example: $25,000 for electronics unless scheduled).
• How deductibles work: You pay the deductible per claim, and it comes straight off the settlement.

Motor truck cargo vs. “cargo insurance” vs. “motor carrier cargo insurance” (terminology)

You’ll see different phrases online and on certificate requests:

• “Motor truck cargo insurance” is the common policy name.
• “Cargo insurance” is generic shorthand.
• “Motor carrier cargo insurance” is often used interchangeably—but in practice, the forms and endorsements on your declarations page matter more than the label.

Business-owner takeaway: don’t buy based on a product name. Buy based on your commodity list, max single-load value, lanes/radius, dock exposure (loading/unloading), and theft conditions (especially unattended vehicle wording).

Who Needs Motor Truck Cargo Insurance (and Who Usually Doesn’t)?

For-hire carriers hauling third-party freight typically need motor truck cargo insurance because brokers commonly require $100,000 per load (and $250,000+ for higher-value freight) before they’ll tender loads. Even when a government agency isn’t demanding it, the market often is.

For-hire carriers hauling freight they don’t own

This is the core group that usually needs cargo:

• Owner-operators under their own authority
• Small fleets
• Hotshot operators hauling vehicles, equipment, or partials
• Box trucks doing general freight, last-mile, or regional lanes

Typical broker/shipper minimums you’ll see:

• $100,000 for general freight (very common)
• $250,000+ for higher-value freight, certain reefer loads, and contract-specific customers

Box truck operators: the most common misunderstanding

A lot of box truck operators assume “I have insurance, I’m good.” But commercial auto protects the vehicle—not the freight.

Auto liability is its own world—cargo doesn’t replace it. If you need clarity, read: Truck Liability Insurance.

If you run a box truck, this is worth your time: box truck insurance cargo coverage.

Private carriers and owner’s goods

If you haul your own product, you may not need motor truck cargo the same way a for-hire carrier does, and inland marine/property-style solutions may fit better. That said, you can still need cargo-style coverage if your contracts, lenders, lease agreements, or occasional third-party loads require it.

Cargo Requirements: Federal Rules, Carmack Liability, and Broker/Shipper Contracts

The Carmack Amendment (49 U.S.C. § 14706) creates a baseline framework for interstate cargo liability claims, which means a carrier can still owe money for cargo loss or damage even if no cargo insurance policy pays. That’s why “cargo insurance” and “cargo liability” aren’t the same thing in the real world.

Carmack Amendment (why carriers can still owe even without insurance)

For many interstate shipments, Carmack governs how cargo claims are handled and when a carrier can be held responsible. Your bill of lading, declared value, and contract language shape the dollars; your insurance is how you transfer that risk—if the loss is covered.

If you’re running thin margins, one uncovered loss can turn into a five-figure (or bigger) payment demand fast.

What’s “required” vs what’s “required to get loads”

• Legally required: Cargo insurance is not a universal federal requirement for general freight in the way primary auto liability filings are.
• Operationally required: Brokers/shippers usually won’t tender a load without a COI showing cargo limits that match their contract.

Why brokers ask for $100,000 (or more): it covers common freight values, reduces their exposure, and gives them confidence that a claim can be paid while liability is sorted out.

Authority, filings, and compliance touchpoints

Cargo insurance doesn’t replace primary auto liability filings or state/federal compliance tied to your authority. Regulations and enforcement change over time; for a current baseline, track updates here: DOT regulations affecting trucking insurance 2025.

State-by-State Cargo Insurance Requirements (2026 Matrix Framework)

There is no single reliable “50-state cargo minimum” list for general freight because most cargo requirements are contractual (broker/shipper packets), and intrastate vs. interstate operations can change what rules apply. If you’re seeing a simple chart online, it’s usually incomplete or outdated.

Instead of chasing a perfect list, use a repeatable matrix to manage cargo requirements by where you actually run and what you actually haul.

Copy/paste matrix template (use this for every state you run)

How to use it

• Fill it out from your broker packets, shipper contracts, and the lanes you actually run.
• Match your cargo limit to your highest single-load value, not your average load.

Want a real example of how state-level pricing can swing the rest of your insurance program? See: Commercial Truck Insurance Cost Florida. (Cargo is still mostly contract-driven, but your operating state affects the whole risk profile.)

What Motor Truck Cargo Insurance Covers (With Examples)

Motor truck cargo coverage is usually written on either a named-perils form (only listed causes of loss are covered) or a broader “all-risk” form (still subject to exclusions, conditions, and sublimits). The right question is always: “Covered for what, under what conditions?”

Common covered causes of loss

Many motor truck cargo policies commonly cover losses tied to:

• Collision/rollover damage (example: load shifts, pallets crushed)
• Fire
• Theft (often subject to strict conditions)
• Some weather events (hail/wind/water can be tricky—policy form matters)

Mini-scenario (theft): You shut down, grab a shower, come back, and the seal’s cut and half the load is gone. Cargo may cover it if you complied with unattended vehicle language (locks, alarm, “secured parking” definitions, and reporting timelines).

Mini-scenario (accident): You get clipped merging, the trailer hits the barrier, and the freight is destroyed. If collision is covered and the load was properly secured, cargo may respond (minus deductible).

Where coverage applies: transit vs. loading/unloading

A lot of real losses happen at docks: forklift punctures, product dropped off a dock plate, or freight gets wet during unloading. Some policies treat this as not in transit unless you have the right endorsement, so don’t assume dock losses are included just because the COI says “cargo.”

What Motor Truck Cargo Typically Does NOT Cover (Exclusions That Deny Claims)

Most denied cargo claims trace back to policy conditions and exclusions—especially unattended vehicle theft requirements, excluded commodities, and temperature/spoilage rules. Brokers usually won’t care why your claim was denied; they’ll care who’s paying.

The most common claim-denial triggers (ask about these directly)

• Unattended vehicle theft conditions: locked unit, keys controlled, and “secured location” defined the way you actually park.
• Improper packaging or securement: shipper-load-and-count and driver responsibility can get messy fast.
• Temperature spoilage without reefer/temperature coverage: reefer claims often require temperature logs, set-point proof, and maintenance records.
• Target commodities excluded or sublimited: electronics, alcohol, tobacco, pharmaceuticals, cosmetics, designer goods, and similar categories may be excluded unless scheduled.
• Wear/tear, inherent vice, delay/loss of market: “it arrived late so we lost the sale” is commonly excluded.
• High-value sublimits/per-item caps: a $250k limit can still have a $25k sublimit for a specific class of goods.

Red-flag questions to pressure-test before you bind

• “Do I have an unattended vehicle theft warranty, and what exactly counts as ‘secured’?”
• “Are electronics/alcohol excluded or sublimited on my form?”
• “Is loading/unloading included?”
• “If I haul reefer: is temperature spoilage covered, and what proof is required?”

How Much Does Motor Truck Cargo Insurance Cost in 2026? (Cost by Cargo Type)

Motor truck cargo insurance cost is primarily driven by commodity, limit, deductible, lanes/radius, and theft/spoilage exposure, so two carriers with the same $100,000 limit can pay very different premiums. A “cheap” cargo policy is often cheap because of exclusions, tight theft language, or harsh sublimits.

If you want the bigger pricing picture across your full program (not just cargo), this breakdown is helpful: what affects the cost of truck insurance in 2025. Those same variables often spill into cargo pricing.

Key pricing factors

• Commodity: high-theft and high-spoilage freight generally costs more than general freight.
• Limit + deductible: higher limits usually raise premium; higher deductibles can reduce premium but increase out-of-pocket.
• Radius/lanes: metro lanes and theft hotspots often get tighter underwriting.
• Experience/new authority: new ventures commonly pay more until loss history is proven.
• Security controls: GPS tracking, geofencing, and documented procedures can help underwriting.

Scenario-based cost patterns (ranges depend on underwriting)

These aren’t quotes, but they reflect how underwriters typically view risk by freight type:

Business reality: sometimes a higher cargo limit isn’t about “being safe”—it’s about qualifying for better-paying freight and cleaner broker lists.

Motor Truck Cargo Add-Ons and Endorsements (Reefer, High-Value, Loading/Unloading)

Most cargo claim gaps come from missing endorsements—especially temperature/reefer coverage, loading/unloading language, and high-value (target commodity) scheduling. Limits matter, but endorsements decide whether a real-world loss fits the policy.

• Loading/unloading coverage: critical if you touch docks daily or deal with tight receivers and lumpers.
• Reefer breakdown / temperature endorsement: confirm it covers mechanical breakdown vs. temperature deviation, and what proof is required (logs, set point, maintenance).
• High-value / target commodity endorsement: you may need to schedule commodities and follow security warranties to keep theft coverage intact.
• Debris removal / earned freight / consequential loss: often limited—don’t assume “all extra costs” are covered.

Rule of thumb: endorsements should match your real commodity mix—not what you hauled last year.

Motor Truck Cargo vs. Contingent Cargo (and Why Brokers Care)

Motor truck cargo is primary freight coverage carried by the motor carrier, while contingent cargo is typically carried by brokers/3PLs as backup and may only respond after the carrier’s cargo claim is denied or exhausted. This is why brokers ask to see your cargo first.

Don’t assume contingent replaces your cargo policy. If you’re hauling the freight, you’re the first line of responsibility in the real world.

How to File a Motor Truck Cargo Claim (Timeline + Documentation Checklist)

Most motor truck cargo policies require prompt notice of a loss and, for theft/vandalism, a police report and documented mitigation steps to prevent further damage. A clean claim is usually a speed-and-paperwork game: document fast, report fast, and don’t violate security conditions.

Timeline: what to do (in order)

1. Secure the scene and prevent more damage: triangles, safe positioning, and loss mitigation matter to adjusters.
2. Notify the right people immediately: dispatch, broker/shipper, and your insurance contact.
3. Document everything: photos/video before moving freight (when safe).
4. Get required reports: theft usually requires a police report.
5. Protect paperwork: missing docs often equals delayed or denied claims.

Cargo claim documentation checklist

Have a ready folder on your phone/tablet with:

• BOL (Bill of Lading)
• POD/delivery receipt with exceptions noted (signing “received in good order” can kill leverage)
• Photos/video of damage, load securement, seal, trailer, and scene
• Police report (theft/vandalism)
• Temperature logs / reefer download + set point proof (reefer)
• Lumper receipts, dock notes, receiver statements
• Repair invoices / salvage documentation (if applicable)

Common “claim killers”

• Late reporting (“we’ll handle it later” turns into “denied for late notice”)
• No exceptions noted on POD
• Violating unattended vehicle/security warranties
• Missing temperature documentation on reefer

How to Choose the Best Motor Truck Cargo Insurance (2026 Provider Checklist)

The best motor truck cargo insurance is the policy whose form, sublimits, and theft/temperature conditions match your actual lanes and commodity list, not the one that just prints a clean COI. “Best” isn’t a logo—it’s the policy that pays when the receiver rejects freight and the broker wants answers.

Provider checklist (what to compare)

• Policy form: named perils vs broader form, and what’s excluded.
• Unattended vehicle theft wording: realistic and aligned with how you park and secure loads.
• Sublimits: especially for target commodities.
• Loading/unloading: included or endorsed?
• Reefer coverage: included/endorsed and the exact proof requirements.
• Claims handling: adjuster access, responsiveness, salvage handling.
• COI speed: ability to issue/update certificates fast enough to keep you rolling.

Questions to ask before binding

• “List my commodities—what’s excluded or sublimited?”
• “What are my security requirements for theft coverage?”
• “What radius is rated, and does it match my lanes?”
• “Is theft covered at truck stops—under what conditions?”
• “Does dock damage count as ‘in transit,’ or do I need an endorsement?”

Shopping strategy that works: submit one accurate application, quote multiple markets, and keep specs identical (limit, deductible, commodities, radius) so it’s a real comparison.

If you’re looking at broader program options beyond cargo, this can help: commercial truck insurance.

The Logrock Difference: Cargo Coverage Built for Owner-Operators (Not Just Paper COIs)

Most cargo coverage failures happen at the claim stage because the bound policy doesn’t match real operations—commodity restrictions, missing endorsements, or theft conditions that don’t fit the way the truck is parked. That’s why it’s not enough to “have $100k cargo” on a certificate.

Logrock focuses on building cargo coverage around how you actually operate:

• Your lanes/radius (not a generic “regional” guess)
• Your real commodity list (including freight that gets excluded by default)
• Your broker/shipper requirements (so you don’t lose loads over a COI mismatch)

If you’re scaling from one truck to a small fleet, this is how you keep risk from eating your growth.