Your liability insurance protects other people. Your physical damage coverage protects your truck. But what protects the freight in your trailer? That's Motor Truck Cargo insurance — and if a shipper or broker asks for a certificate before tendering a load, this is almost always the coverage they want to see.
What Motor Truck Cargo insurance is
Motor Truck Cargo (MTC) pays for loss or damage to the commodities you're hauling while they're in your care, custody, and control. When you take possession of a shipper's freight, you can be held legally responsible for it — cargo insurance protects you from paying for a damaged load out of pocket. Coverage generally runs from the moment you take possession until delivery, alongside your primary liability.
What it covers
- Collision, overturn, or an accident in transit
- Fire, smoke, and explosion
- Theft of the cargo
- Striking or being struck, and load shift
- Certain water damage and weather events
How much cargo coverage do you need?
$100,000 is the most common limit for general freight and a frequent broker minimum. High-value freight (electronics, pharmaceuticals, metals) needs more. If you occasionally take a load above your normal limit, ask about single-trip cargo coverage rather than leaving that haul underinsured.
Common exclusions to watch for
- Excluded commodities — many policies exclude or sub-limit livestock, money, jewelry, alcohol/tobacco, and hazardous materials.
- Refrigeration breakdown — standard cargo policies usually do not cover spoilage from a reefer unit failing. If you haul temperature-sensitive freight, add reefer breakdown coverage.
- Unattended-vehicle theft — claims may be reduced if the truck was left unlocked or in an unsecured area.
- Employee dishonesty and contraband — typically excluded.
How it fits with your other coverages
Primary liability covers injury/damage you cause others. Physical damage covers your truck and trailer. Motor truck cargo covers the freight itself. Trailer interchange covers non-owned trailers you pull under an agreement. See how they combine on our coverages overview.
Who needs it?
If you haul for hire, almost certainly yes — and your contracts usually require it. It applies to owner-operators, private carriers, and semi-truck and box truck operators alike.
Frequently asked questions
Doesn't the shipper's insurance cover my load?
Don't count on it. As the carrier, you can be held liable for freight damaged in your possession — which is why brokers require your own cargo coverage.
Does cargo insurance cover reefer spoilage?
Not by default. You need refrigeration breakdown coverage for spoilage from a unit failure.
Not sure what limit or endorsements you need? NITIC's trucking-only agents will tailor a cargo policy to the freight you actually haul. Get a free quote or call (800) 726-8376.