Is cargo insurance mandatory for commercial trucking companies?

Cargo insurance is not legally required for most commercial trucking companies, but it is often required by shippers. Commercial cargo insurance provides financial protection for motor carriers if freight is damaged, lost, or destroyed while in transit.

What does commercial cargo insurance cover?

Commercial cargo insurance covers damage or loss to freight caused by events such as fire, collision, theft, and other covered perils while cargo is being transported, loaded, unloaded, or temporarily stored during transit.

Are there exclusions in cargo insurance coverage?

Cargo insurance policies may include exclusions depending on the insurer and coverage form. These can involve certain high-risk cargo types, improper packaging, or losses caused by inherent cargo defects. Coverage details vary by policy.

Does cargo insurance cover temporary storage or delays?

Some commercial cargo insurance policies provide coverage for cargo during temporary storage or delays, such as when freight is held at a terminal or dock while awaiting delivery, subject to policy terms.

Commercial Cargo Insurance

Commercial Cargo Insurance Coverage

Cargo insurance, sometimes referred to as Freight or Inland Marine insurance, provides financial protection for motor carriers that haul freight and commodities on behalf of their clients.

Cargo insurance provides coverage for damage to freight and cargo by fire and collision, as well as other perils you face while on the road, such as hitting, running over, or striking your load.

It activates when covered cargo is damaged or lost while you are transporting it under a bill of lading or shipping receipt. It also insures cargo when it is being loaded, transported, and unloaded, and while you’re at a terminal or dock waiting for the recipient to sign for it.

Why Commercial Cargo insurance is important for motor carriers.

A motor carrier is liable if the cargo they are handling is damaged, lost, or destroyed. Cargo coverage, sometimes referred to as truck cargo coverage or inland marine coverage, provides you financial protection to cover the cost of the cargo, cleanup, pollution removal, and more.

Many clients require for-hire truckers to carry Cargo coverage to insure their loads while the driver is transporting for them.

multi-image of a semi on a highway, an owner operator driving a truck, and a close up of a semi trucks tires

What does Great West Cargo insurance coverage Include?

We’ve found that more than any other type of trucking insurance, Cargo coverage varies widely among insurance carriers and is often notable for what is not covered.

At Great West, we provide Broad Form Cargo insurance, which means we cover many losses that other insurers exclude.

Covered Losses and Expenses

Unrecoverable freight charges after a loss
Loss-recovery expenses in addition to the limit
Cleanup and pollution-removal expenses up to $10,000 in addition to the limit

Our Cargo insurance covers what others don’t.

The following items, often excluded under standard cargo policies, are included in our Cargo Insurance.

Alcohol products
Cargo in transit for more than 72 hours
Consumer electronics
Marring, scratching, packing, and rough handling, unless shipper error
Wet loads
Mysterious disappearance or pilferage, including from an employee when the Infidelity or Dishonesty Extension is added
Involuntary parting with the cargo by fraud or trick
Refrigeration breakdown, failure to fuel, or maintenance of refrigeration equipment
Spoilage

Requirements Not Mandated By Our Cargo Coverage

That cargo must be attended at all times
A coinsurance penalty for underinsurance
A locked vehicle warranty
An equipment maintenance warranty
A tarped load warranty
Reduced limits for certain commodities

Great West consolidates your deductibles.

When you have an accident that damages your tractor, trailer, and cargo, you would typically have to pay three deductibles. At Great West, we provide a Single Deductible endorsement at no cost to you. That means one Physical Damage deductible applies to a single-unit loss involving covered cargo, a tractor, and a trailer. Instead of a deductible applying to each of these, only the highest single deductible of the three applies when the loss occurs away from your premises. This can save you substantial out-of-pocket costs.

Optional Commercial Cargo Insurance Coverages

Talk to your Great West agent today about ways to customize your Cargo coverage to reflect your trucking business operations. Here are some of our optional coverages to consider.

Hired Auto Cargo Insurance Coverage

This coverage extends your Cargo protection to loads for which you are responsible under a bill of lading. Examples of situations that would need this type of coverage to broaden your truck's Cargo policy:

You borrow or rent an additional unit
You ask another truck professional who has limited, if any, Cargo insurance to haul a portion of your goods
You allow another motor carrier to “trip lease” to haul freight under your authority

Infidelity and Dishonesty Cargo Coverage

This coverage extends the truck Cargo coverage to protect you from losses due to the dishonesty of an employee or an owner-operator driver while the property is in/on a truck or trailer.

FREQUENTLY ASKED QUESTIONS

Commercial Cargo Insurance FAQs

Is Cargo insurance mandatory for trucking companies, or is it optional?

Cargo insurance is not legally mandatory for trucking companies but is often essential for financial protection. It covers damage to freight and cargo of others due to various perils during transport. Although not required by law, many shippers or clients require truckers to carry cargo coverage to insure their loads.

What types of cargo are typically covered by Cargo insurance for trucks?

Cargo insurance for trucks typically covers a wide range of cargo types. This includes general freight, commodities, and specialized goods. It's designed to protect against damage to the cargo caused by fire, collision, and other common perils encountered during transport.

Are there limitations or exclusions in Cargo Insurance policies for commercial trucks?

Yes, cargo insurance policies for commercial trucks usually have specific limitations and exclusions. These can include exclusions for certain types of cargo, such as hazardous materials or high-value items such as jewelry. Other common exclusions might involve losses due to improper packing or inherent vice of the cargo. It's important to review the policy details for precise information on limitations and exclusions.

Are there specific security or safety measures required to maintain Cargo insurance coverage during transit?

Cargo insurance policies may require specific security and safety measures to maintain coverage during transit. These measures typically include proper securing of the cargo, adherence to safety protocols, and compliance with transportation regulations. Specific requirements can vary depending on the type of cargo and the insurer's guidelines.

Is there coverage available for temporary storage or warehousing of cargo during transit delays?

Cargo insurance policies may offer coverage for temporary storage or warehousing of cargo during transit delays, often under certain conditions. This coverage is designed to protect cargo when it's held at an interim location due to unforeseen circumstances, such as transportation delays or logistical issues. However, the extent and terms of such coverage can vary based on the specific policy.

Insurance Contracts are Underwritten, Administered, and Issued by: Great West Casualty Company, Old Republic Life Insurance Company, and Old Republic Union Insurance Company.

One or more Old Republic companies may provide the products and/or services described. Information presented is for illustrative purposes only and does not constitute a contract or advice, including employment advice or advice to motor carriers. Please refer to the relevant insurance policy for actual terms. Products and services may not be available in all states and may be subject to change without notice. © 2026 Old Republic International Corporation. Old Republic® and the Old Republic Circle of Stars monogram are registered trademarks. All Rights Reserved.

Cargo Insurance