Motor truck cargo insurance: what it covers and when you need it
Motor truck cargo insurance covers loss of or damage to the freight you haul while it is in transit, up to the policy limit and subject to its exclusions. Federal rules require cargo coverage only for household goods carriers. For general freight, brokers and shippers ask for it by contract. TQL, for example, publishes a $100,000 cargo minimum.
- What cargo coverage is for
- When the law requires it
- What brokers ask for
- How cargo claims work
- What to read in a cargo form
- FAQ
Most small fleets buy cargo coverage because a broker packet asks for it. Here is what it is for, what the law actually requires, and what to check in the form before a claim.
What cargo coverage is for
IRMI defines motor truck cargo as an inland marine form covering loss of property in transit, either by common carrier or on the insured's own vehicles, depending on the form used. IRMI definition
Why carriers need it: under the Carmack Amendment, an interstate motor carrier that receives property under a receipt or bill of lading is liable for the actual loss or injury to that property. Not issuing a bill of lading does not change that. 49 U.S.C. 14706(a)
A carrier may limit its liability to a value the shipper declares in writing, or agrees to in writing, if that value is reasonable (14706(c), not for household goods). Read the bill of lading and broker contract for any declared value.
We cite IRMI only as a public reference. We are not affiliated with IRMI.
When the law requires it
| Carrier type | Cargo requirement |
|---|---|
| Interstate household goods | $5,000 per vehicle, $10,000 per occurrence (49 CFR 387.303(c)) |
| Michigan household goods (CVED Authority) | Form H from your insurer (Michigan State Police) |
| General freight, interstate or Michigan intrastate | No federal cargo filing. Brokers and shippers set it by contract. |
Sources: 49 CFR 387.303, MSP CVED Regulatory. Starting a Michigan-only operation? See our Michigan CVED Authority guide.
What brokers ask for
TQL publishes a $100,000 minimum cargo policy, $1 million auto liability and reefer breakdown on the certificate when it applies (TQL carrier FAQs, checked Oct 23, 2026). We name TQL only as a public example. We are not affiliated with or appointed by TQL. Other brokers set their own limits. See our broker insurance requirements guide.
How cargo claims work
- The claim. A written claim that identifies the shipment, asserts liability and asks for a specific amount counts as a filed claim (49 CFR 370.3).
- Acknowledgment. The carrier acknowledges it in writing within 30 days, unless it pays or declines it first (370.5).
- Decision. The carrier pays, declines or makes a firm settlement offer in writing within 120 days, and sends a status letter every 60 days if it needs longer (370.9).
- Deadlines. A carrier cannot set less than 9 months to file a claim, or less than 2 years to sue after a written disallowance (14706(e)).
Source: 49 CFR Part 370. Keep bills of lading, delivery receipts, photos and seal numbers for every load. They are what a claim turns on.
What to read in a cargo form
Cargo forms vary more than most lines. Before you rely on yours, find:
- The limit per vehicle and per loss, and whether it fits your highest-value loads
- Commodities that are excluded or limited
- Whether reefer breakdown is included or needs to be added
- Theft conditions, including parked or unattended trucks
- Whether freight at a terminal or in a dropped trailer is covered
- The deductible, and who pays it under your lease or broker contract
Cargo theft is a live risk. Our Oct 23 Wire covers a federal case in which a ring took over real carriers to book loads, and at least 24 loads never arrived. Read the theft conditions in your cargo form closely.
Pulling trailers you do not own? See trailer interchange vs non-owned trailer. Leased owner-operators should also read non-trucking liability vs bobtail. More for growing fleets: Builders: small fleets.
FAQ
Is cargo insurance required by law?
Federally, only for household goods carriers: $5,000 per vehicle and $10,000 per occurrence (49 CFR 387.303(c)). In Michigan, the State Police ask household goods carriers for a Form H. For general freight, brokers and shippers require it by contract.
How much cargo insurance do brokers ask for?
Each broker sets its own number. TQL publishes a $100,000 cargo minimum, plus reefer breakdown on the certificate when it applies. Read each broker packet.
What is the difference between cargo insurance and carrier liability?
Federal law (the Carmack Amendment, 49 U.S.C. 14706) makes interstate carriers liable for actual loss or injury to the property they carry under a bill of lading. Cargo insurance is a policy that may pay for that loss, within its limit and terms.
How long does a shipper have to file a cargo claim?
A carrier cannot set a claim period shorter than 9 months, or a lawsuit period shorter than 2 years from the date it gives written notice that it disallowed the claim (49 U.S.C. 14706(e)).
How fast does a carrier have to answer a cargo claim?
Under 49 CFR 370, the carrier acknowledges a written claim within 30 days, and pays, declines or makes a firm settlement offer in writing within 120 days, with status letters every 60 days after that.
Does cargo insurance cover reefer breakdown?
Not always. Brokers list reefer breakdown as its own item on the certificate, so check whether your cargo form includes it.
This guide is general information, not legal advice or an offer of insurance. Rules and programs change, so check the sources below. Helm Partners is a trucking-only insurance agency being formed in Michigan. Our Michigan license is pending. We do not quote or sell insurance until licensed.
Sources
- IRMI: Motor truck cargo (definition)
- 49 U.S.C. 14706: Liability of carriers under receipts and bills of lading (Cornell LII)
- 49 CFR 387.303: Minimum limits, including household goods cargo (paragraph c)
- 49 CFR Part 370: Principles and practices for cargo claims
- Michigan State Police: CVED Regulatory (Form H for household goods)
- TQL: Carrier FAQs