March Question of the Month: What Is Motor Truck Cargo Insurance and When Is It Required?

Motor truck cargo insurance is designed to protect your business from financial loss if the freight you’re hauling is damaged, lost, or stolen while in your care, custody, or control.

Depending on your policy, coverage can extend to expenses such as debris removal, prevention of further loss, and legal defense costs if a claim is made against your business. Review your policy details to understand any exclusions or limitations, such as specific cargo types or unattended vehicles.

If you operate as a for-hire carrier transporting household goods, the California Public Utilities Commission (CPUC) and the Federal Motor Carrier Safety Administration (FMCSA) may require you to carry cargo insurance to obtain or maintain your operating authority.

Many shippers and freight brokers require proof of cargo coverage before awarding contracts, regardless of regulatory requirements.

If you’re looking to secure cargo coverage or have questions about insurance requirements for your trucking business, contact us today.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.