Glossary

Motor truck cargo

Coverage for a trucker's legal liability when a customer's freight is lost, stolen or damaged while in the carrier's care during transport.

Also called: cargo insurance, trucker's cargo, motor carrier cargo liability, carrier's legal liability

Motor truck cargo insurance protects a for-hire trucker against claims for freight lost, stolen or damaged in transit. It is legal liability coverage: it pays what the carrier owes the shipper, not the value of the trucker's own goods. Under the Carmack Amendment an interstate carrier is generally liable for the actual loss of goods in its custody, with narrow defenses such as an act of God or the shipper's own fault.

The trucker's auto liability policy does not respond. It pays for injury and damage the truck causes to others, and it excludes property in the insured's care, custody or control, so cargo is written separately, often on an inland marine or truckers form. The MCS-90 endorsement is about public liability and does not cover freight.

Headline limits mislead. Look at the per-vehicle limit, which caps one truck's load, and the per-occurrence limit for a terminal or a catastrophe involving several trucks. Then read the exclusions and conditions that cause denials: theft from an unattended vehicle, refrigeration breakdown on a reefer load unless endorsed, high-theft commodities such as electronics or alcohol, driver dishonesty, and loads worth more than the stated value. Brokers, shippers and lenders usually set the required limit in the contract, so ask before you bid. The guide on motor truck cargo insurance: how it works and where it stops covers rating and claims.

Last reviewed October 10, 2026

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Related terms

Inland marine Property coverage for goods in transit, movable equipment and certain specialty property, written outside the standard building and contents forms. Bailee A person or business holding someone else's property temporarily, such as a repair shop, dry cleaner or warehouse, with a duty to care for it and return it. Care, custody and control A liability policy exclusion for damage to other people's property that the insured has in its possession or charge, such as a customer's car or goods. Business auto policy (BAP) The commercial policy covering liability and physical damage for vehicles a business owns, hires or borrows, with covered autos chosen by numbered symbols. MCS-90 A federal endorsement on a trucker's liability policy that guarantees payment of judgments to the public up to the federal minimum, even for excluded losses.

Related guides

FMCSA insurance requirements and filings for motor carriers FMCSA sets minimum liability limits for for-hire and hazmat carriers, proved by an MCS-90 and insurer filings. Limits, forms, cancellation rules, penalties. Inland marine insurance for tools, equipment and goods in transit Inland marine insurance covers business property that moves or sits off premises: tools, equipment, goods in transit, fine art. How it works and how it differs. Intrastate trucking insurance requirements by state Liability minimums, Part 387 adoption, Form E/H filings, regulators and USDOT number rules for in-state for-hire truckers in all 50 states and DC. Motor truck cargo insurance: how it works and where it stops Motor truck cargo insurance pays what a carrier owes a shipper for lost or damaged freight. How Carmack liability, limits and exclusions work. Ocean marine and cargo insurance: how shipment and vessel coverage works Marine cargo insurance covers goods door to door under the Institute Cargo Clauses. What A, B and C cover, why carrier liability falls short, how claims run. Owner-operator insurance: leased vs independent authority What an owner-operator must insure depends on whose authority the truck runs under. Leased-on vs own-authority coverage, and the lease terms that matter.

Related insurers

Acuity Sheboygan, Wisconsin mutual selling through independent agents in 30-plus states; a major trucking insurer, rated A+ by both AM Best and S&P. IAT Insurance Group Private Raleigh specialty carrier writing trucking and moving insurance, inland marine, E&S casualty and property, surety and management liability via agents. Old Republic Chicago-based specialty group (NYSE: ORI) behind Great West trucking, Bitco construction, PMA comp and large-deductible programs; No. 4 in U.S. commercial auto. Progressive Commercial The largest U.S. commercial auto insurer, for work vehicles, trucks and tow trucks, sold by agents and online. Most other business lines come from partners. Sentry Insurance Wisconsin mutual founded in 1904 that insures manufacturers, dealers, truckers and large employers, plus Hortica and specialty programs; owns The General.

Related industries

Courier and delivery insurance What courier and delivery businesses need: commercial auto, hired and non-owned auto, cargo, GL and comp, and how gig-platform coverage differs from your own. Moving company insurance What movers need: cargo and valuation liability under 49 CFR 375, auto liability, general liability, workers' comp and bailee cover, plus state mover rules. Trucking company insurance What motor carriers need: liability to FMCSA minimums, MCS-90, cargo, physical damage, non-trucking cover and workers' comp, and what shippers demand. Wholesaler and distributor insurance What wholesalers and distributors need: products liability, vendor's endorsements, stock and warehouse property, fleet and cargo, forklift injuries, FDA duties.