Motor truck cargo insurance covers freight you're hauling if it's lost, stolen, or damaged in transit. The policy pays the shipper or owner of the goods for their loss. A standard cargo policy comes with a $100,000 per-occurrence limit — an amount that made more sense when fewer loads routinely exceeded it. Today, a single truckload of electronics, pharmaceuticals, or high-value manufactured goods can exceed $100,000 easily, and many shippers and freight brokers now build higher cargo requirements into their carrier packets as a condition of receiving loads.
This guide covers the commodity-by-commodity reality of cargo limits, the exclusions that produce claim denials even when you have a policy, and how to structure your cargo coverage around what you actually haul.
Why the $100,000 Default Exists (and When It's Not Enough)
The $100,000 standard came from an era when general freight — consumer goods, building materials, processed foods — made up the majority of truckload moves and most loads fit comfortably within that limit. For a carrier running dry van general freight today — mixed consumer goods, non-perishable food, industrial products — $100,000 is often adequate per load. Many dry van loads average $30,000 to $60,000 in cargo value.
The problem is that specialization has changed the math. Carriers running electronics, pharmaceutical products, high-end apparel, luxury goods, or specialty equipment regularly move loads worth $200,000 to $500,000. A single pallet of smartphones can exceed $100,000. A full trailer of flat-panel TVs, construction materials for a commercial fitout, or medical devices can easily run $150,000 to $300,000. If your cargo limit is $100,000 and the load is worth $250,000, you're personally responsible for the $150,000 gap after a total loss.
Freight brokers check your cargo limit before tendering loads. Most freight broker carrier packets require a minimum cargo limit — often $100,000, but increasingly $150,000 or $250,000 for shipper-controlled freight. If your limit doesn't meet their requirement, you won't receive those loads. Verify your limit before you're declined at the point of dispatch.
Cargo Limits by Commodity Type
These are general ranges reflecting what shippers, freight brokers, and carrier contracts typically require or what loads commonly value at. Actual requirements vary by shipper and load. Verify requirements with each broker packet you sign and each shipper contract you execute.
| Commodity category | Common load values | Typical minimum required | Notes |
|---|---|---|---|
| General dry freight (mixed goods, consumer products) | $20,000–$80,000 | $100,000 | Standard; $100K is usually adequate |
| Building materials (lumber, steel, concrete products) | $20,000–$100,000 | $100,000 | Varies widely by material and distance |
| Appliances and furniture | $40,000–$150,000 | $100,000–$150,000 | Full truckloads can approach $150K |
| Electronics (consumer, commercial) | $100,000–$500,000+ | $250,000–$500,000 | Target commodity — theft exclusion often applies |
| Pharmaceuticals | $100,000–$1M+ | $250,000–$500,000 | Temperature, chain-of-custody requirements common |
| Fresh produce / refrigerated | $30,000–$150,000 | $100,000–$150,000 | Reefer breakdown exclusions common; see below |
| Meat, poultry, seafood | $40,000–$200,000 | $100,000–$200,000 | Temperature requirements; often separate reefer breakdown coverage needed |
| Steel and metals | $30,000–$150,000 | $100,000 | Commodity exclusions on some policies |
| Alcohol / spirits | $50,000–$200,000 | $100,000–$250,000 | Some carriers restrict coverage; verify policy language |
| High-value manufactured goods (luxury, specialty) | $100,000–$500,000+ | $250,000–$500,000 | Specific scheduling may be required |
These ranges represent typical market requirements, not guarantees. Always read the actual shipper or broker packet requirements for the specific loads you're hauling.
Exclusions That Deny Claims Even When You Have a Policy
A cargo claim denial doesn't require fraud or misconduct on your part. Several standard policy exclusions routinely produce denials for otherwise valid losses. Understanding these before you buy — and before you take a load — is how you avoid the worst outcomes.
Theft from unattended vehicle
This is the most common exclusion that surprises carriers. Many cargo policies exclude or severely limit coverage for theft that occurs while the truck and trailer are unattended. The definition of "unattended" varies by policy but typically means the driver is not within visual range of the vehicle. A truck parked overnight at a truck stop while the driver sleeps in a motel is usually "unattended." A trailer dropped at a shipper's yard for loading is "unattended." Electronics, pharmaceuticals, and other high-value commodities are primary theft targets, and the loads most likely to be stolen are exactly the ones most likely to have theft exclusions apply.
If you haul high-value freight, specifically ask your broker about theft coverage and the "unattended vehicle" definition in your policy. Some carriers offer endorsements that cover unattended theft with specific security requirements (the trailer must be in a secure lot, immobilization device in use, etc.). Others exclude it entirely. If theft of an electronics or pharma load while parked overnight is your most realistic loss scenario, you need to know what your policy says about it before the load is on the trailer.
Refrigeration breakdown ("reefer breakdown")
A standard cargo policy covers temperature-sensitive goods if they're damaged because of an accident, collision, or covered peril. It typically does not cover spoilage caused by mechanical breakdown of the refrigeration unit. Reefer breakdown coverage is a separate endorsement or standalone policy that specifically covers spoilage from mechanical failure of the refrigeration system.
The practical impact: if your reefer unit fails en route, your load of produce or meat spoils, and you have a standard cargo policy without the reefer breakdown endorsement, the spoilage claim is denied. The shipper's loss is real and your policy doesn't cover it. Carriers running refrigerated freight should treat reefer breakdown coverage as non-optional — it's a matter of when the unit fails, not if. See our guide on trucking insurance in Texas for more on the full coverage stack for refrigerated carriers.
Target commodity exclusions
Many cargo policies list specific commodities that are either excluded entirely or subject to sublimits lower than your policy limit. Common target commodity exclusions or sublimits include:
- Electronics (consumer and commercial)
- Tobacco products
- Alcohol/spirits
- Apparel (clothing, footwear)
- Pharmaceuticals
- Precious metals, jewelry
- Money or negotiable instruments
If you haul any of these and haven't read your policy's commodity schedule, you may be hauling loads that aren't covered. Request the commodities schedule or restriction list from your broker before binding the policy. If a commodity you regularly haul is excluded, you either need a different carrier, an endorsement that adds coverage, or you need to avoid that commodity.
Improper loading by shipper
If cargo is damaged because the shipper loaded it improperly and you can demonstrate you had no involvement in or knowledge of the improper loading, some cargo policies exclude the loss on the basis that it was the shipper's fault. This exclusion is more commonly invoked as a coverage dispute than an outright denial, but it's worth knowing the policy language on loading and your documentation requirements.
Earthquake and flood
Most cargo policies exclude losses caused by earthquake, flood, and other natural catastrophes. If a bridge washes out in a flood and takes your trailer with it, the cargo loss is likely excluded. This is a background risk that's rarely relevant but worth knowing — if you're hauling in an area with significant flood or earthquake exposure, ask your broker whether coverage extensions are available.
Freight Broker Packet Requirements
When you sign up with a freight broker to receive load opportunities, they send you a carrier packet — an agreement that establishes the terms under which you'll haul their loads. The insurance requirements section of that packet specifies minimum liability, cargo, and sometimes workers' comp limits. You must meet these minimums to be approved and to receive dispatches.
Common broker packet cargo requirements:
- Standard freight brokers: $100,000 minimum
- Mid-tier shippers and brokers: $150,000 to $250,000
- High-value commodity shippers: $250,000 to $500,000
- Pharmaceutical and electronics shippers: $500,000+ with specific exclusion requirements
If your cargo limit is below the broker's requirement, you won't be approved. More commonly, you'll be approved at the standard limit and then declined for specific loads when the load value exceeds your coverage. This happens mid-dispatch and creates operational disruption. Set your cargo limit to match the upper end of the freight types you want to carry, not the lower end of what's minimally required.
Read every broker packet before signing. Some broker packets contain contractual liability provisions — you agree to be responsible for cargo losses that exceed your policy limit, or you agree to indemnify the broker for claims arising from your operations. These provisions are enforceable regardless of whether your policy covers the loss. Understand what you're agreeing to before you sign.
When to Buy More Than the Standard Limit
The decision to increase your cargo limit above $100,000 depends on what you haul. Here's a straightforward framework:
- Haul consistent dry van general freight under $80K per load: $100,000 is likely adequate. Review annually as commodity values change.
- Haul loads that occasionally or regularly exceed $100K: Increase to $150,000 or $250,000. The cost difference is modest relative to the exposure gap.
- Haul electronics, pharma, or luxury goods: $250,000 to $500,000 minimum, with careful attention to theft and target commodity exclusions. A higher limit that still has an unattended vehicle exclusion for electronics doesn't solve the most likely loss scenario.
- Haul refrigerated goods: Ensure you have reefer breakdown coverage, separate from your base cargo limit question.
The premium difference between $100,000 and $250,000 in cargo coverage varies by operation but is often $300 to $1,000 per year — a manageable increase relative to the gap it closes on a single high-value load loss.
What to Ask Your Broker About Cargo Coverage
- What is my policy's per-occurrence limit, and does it include any sublimits for specific commodity types?
- Is theft from an unattended vehicle covered? If so, what are the conditions?
- What commodities are excluded or sublimited on my policy?
- If I haul refrigerated freight, do I have reefer breakdown coverage?
- Does my policy cover the commodities I regularly haul, or do I need endorsements?
- What are the documentation requirements I need to meet to present a valid cargo claim?
For a broader picture of how cargo fits into the full trucking insurance program, see our guides on trucking insurance in Texas and owner-operator insurance.
Frequently Asked Questions
Does my auto liability policy cover cargo losses?
No. Auto liability covers bodily injury and property damage you cause to other parties. It does not cover the freight you're hauling. Cargo losses require a separate motor truck cargo policy. If you haul freight without cargo insurance and there's a loss, you're personally responsible for the shipper's damages.
Is cargo insurance required by federal law?
The FMCSA requires auto liability insurance as a condition of operating authority. There is no federal cargo insurance minimum — cargo insurance is a contractual requirement from shippers and freight brokers, not a federal regulatory requirement. The practical effect is the same: you won't get loads without it.
If a shipper improperly loads my trailer and the goods are damaged, am I liable?
This depends on the bill of lading terms and your state's law. Under the Carmack Amendment (which governs interstate freight), carriers have strict liability for cargo loss or damage with limited exceptions. Shipper fault is a recognized defense under Carmack, but it requires documented evidence that the shipper's loading caused the loss and that you didn't know about it. The practical answer: document load conditions when possible, note any visible issues on the bill of lading, and let the claim dispute process work through the facts.
What documentation do I need to present a cargo claim?
Standard documentation requirements: bill of lading showing receipt of the goods in apparent good order, delivery receipt showing damage noted at delivery (or explanation if not noted), photographs of the damage, the shipper's invoice establishing cargo value, and any driver logs, inspection reports, or maintenance records relevant to the loss. Carriers who don't maintain this documentation typically have a harder time presenting claims regardless of the merits.