Motor Truck Cargo Insurance
What is motor truck cargo insurance?
Motor truck cargo insurance, also called cargo insurance, protects goods and materials transported by for-hire truckers. It covers damage, loss, or harm to the materials truckers haul in case of events like fire, collision, and theft. Cargo insurance protects both you and the cargo owner against loss.
Depending on the insurer, cargo coverage may be a standalone policy or an endorsement on your standard trucking liability policy.
Progressive Commercial has customizable truck insurance options to meet your needs. Work with our team of experts or start a quote online to help protect your business.
Who needs motor truck cargo insurance?
Some risk managers require truckers to insure their freight. Owner operators, for-hire truckers, and private carriers in various sectors can all benefit from the protection that cargo insurance provides.
Types of trucks that typically need cargo insurance include:
- Dump trucks
- Tractors
- Box trucks
- Cement mixers
- Logging trucks
- Pickups
- Flatbed trucks
- Car haulers
Why is motor truck cargo insurance important?
Cargo insurance is important because it helps protect both the trucker and the owner of the goods inside the truck. For example, cargo insurance can pay for the damage if a truck gets into an accident and the cargo inside is destroyed.
Many clients and shippers require cargo coverage to protect their goods, making it an essential part of securing business contracts. It also enhances your professional reputation and offers peace of mind, letting you focus on your work without worrying about possible setbacks.
What does motor cargo insurance cover?
Cargo insurance covers damage, loss, and other issues that can happen while transporting goods. It protects your business in situations such as:
- Lost or damaged cargo: Covers cargo that's been lost, damaged, or destroyed by things like accidents, fire, theft, and vandalism.
- Removal expenses: Pays to clean up debris and pollutants caused by the cargo you're hauling.
- Sue and labor: Helps cover costs related to preventing further damage to your cargo after a loss, such as hiring a salvage company.
- Earned freight: Protects customers from charges associated with an undelivered load.
Motor truck cargo insurance coverage types
We offer various types of cargo insurance for truckers and other eligible customers, including:
- Motor truck cargo insurance: Protects transported materials and pays for property losses caused by events that damage cargo.
- Motor truck cargo insurance with refrigeration breakdown: Covers losses from spoilage or changes in temperature.
Expanded motor truck cargo coverage with Cargo Plus
Progressive Commercial's new Cargo Plus endorsement offers broader protection for for-hire truckers. It covers things that standard cargo insurance usually doesn't, like damage from wetness, rust, corrosion, and driver error.
When combined with refrigeration breakdown coverage, Cargo Plus also protects against temperature-related losses in reefer trucks. Cargo Plus is automatically included in new policies and readily available to existing customers.
Exceptions and restrictions for cargo insurance coverage
Not all vehicles and cargo types are eligible for this coverage. Exclusions and restrictions include:
Common motor cargo exclusions
The following cargo types are excluded from coverage:
- Art, jewelry, money, or paper
- Contraband
- Property in custody of another carrier
- Cargo stored for more than 72 hours
- Explosive or radioactive material
Motor truck cargo limitations
Commercial cargo insurance is not offered for:
- Garbage trucks
- Limos
- Hearses
- Buses
- Passenger vans
- Motor homes
- Ice cream trucks
Restrictions for cargo insurance
Other restrictions include:
- Live animals, unless death occurs or is made necessary within 24 hours
- Items not listed on shipping documents, such as a bill of lading, tariff document, rate confirmation sheet, shipping receipt, or contract of carriage
- Transporting conveyances and equipment not specified on a bill of lading
- Pharmaceuticals, tobacco, and alcohol, except for beer or wine
Motor truck cargo insurance isn't available from Progressive Commercial in all states and situations. Start a quote or speak to an agent to learn more.
Limits, deductibles, and other details for cargo coverage
When you choose Progressive Commercial's motor truck cargo insurance, you'll need to select a limit and pick a deductible. The limit can be set by the sender or receiver and shows how much the insurance will cover. The deductible is the amount you'll pay out of pocket for each claim. Talk to an expert to ensure you're protected.
Motor truck cargo insurance cost
The cost of cargo insurance for truckers is determined by things like business type, truck, driving history, and location.
Work with an agent to learn how these and other factors affect your truck insurance premium and ask about our vehicle insurance discounts. Start a motor truck cargo insurance quote today to see how much you can save.
Common questions about motor cargo truck insurance
Is motor truck cargo insurance the same as freight insurance coverage?
Not exactly. It's true that cargo insurance protects the freight that truckers haul, but it's more commonly called motor truck cargo or cargo insurance because it's customized for the trucking industry.
Some people use freight insurance to mean the same thing. However, freight insurance can also refer to a broader coverage that international shipping companies need when working across borders. This use of freight insurance is usually focused on protecting the carrier, not the cargo owner.
Is motor truck cargo insurance legally required?
Yes, but only for trucks that haul household goods. The Federal Motor Carrier Safety Administration (FMCSA) defines household goods as personal belongings meant for use in a home, including items bought from a factory or store. A minimum coverage amount of $5,000 per vehicle and $10,000 per occurrence is required. States might also have additional insurance requirements, so it's important to check your state insurance regulations.
Is motor truck cargo insurance the same as transportation insurance?
Not exactly. Motor truck cargo insurance is a type of transportation insurance, but transportation insurance is a broader term that covers people or goods in transit by land, air, or sea. Motor truck cargo insurance only covers freight moved by trucks.
Does motor truck cargo insurance cover the truck?
No, cargo insurance does not cover your truck. It only protects the freight you haul. You'll need physical damage coverage to protect your vehicle in case of collisions, theft, and vandalism.
Does motor truck cargo insurance cover parked loads?
It depends on your policy. Cargo insurance covers goods in transit, including times when the truck is parked during transport. If your truck is parked for a long period with cargo inside, you might be able to extend coverage to ensure your freight remains protected.
Why choose Progressive Commercial for motor truck cargo insurance
As the #1 commercial truck insurer in America,Δ we take pride in what we do. Progressive Commercial is trusted by businesses like yours, offering reliable coverage, competitive rates, and exceptional service.
You can start a truck insurance quote online or call one of our experts.
