Shipper contract insurance clauses for dry van carriers
Shipper contracts can set liability and cargo limits above the federal floor and add terms like additional insured, waiver of subrogation and notice of cancellation. The federal minimum for general freight in trucks rated 10,001 pounds or more is $750,000. A contract can change many terms in writing, but it cannot waive registration, insurance or safety fitness rules.
- The federal floor
- Clauses to look for
- What a contract cannot waive
- Before you sign
- FAQ
Shipper contracts for dry van freight can include an insurance section. Here is what it may cover and how it fits with federal rules. This is education, not advice on any policy.
The federal floor
- For-hire general freight in trucks rated 10,001 pounds or more: $750,000 (49 CFR 387.303T).
Clauses to look for
- Auto liability and cargo limits, sometimes higher than the federal floor.
- Additional insured, waiver of subrogation, and primary and noncontributory wording. See insurance terms in dedicated contract carriage.
- Cargo liability terms. By default, carrier liability follows 49 USC 14706.
- Notice of cancellation and certificate requirements. See certificates of insurance for mills and plants.
What a contract cannot waive
- Parties can waive some rights in writing, but not registration, insurance or safety fitness rules (49 USC 14101(b)).
Before you sign
- List every insurance term in the contract.
- Compare each with your policy and endorsements.
- Ask your agent which terms need an endorsement.
- Put the renewal date on your calendar. See a dedicated contract renewal checklist.
Dry van basics: dry van insurance requirements. Theft: dry van cargo theft prevention for small fleets.
FAQ
Is the federal minimum enough for a shipper contract?
The federal floor is $750,000 for for-hire general freight in vehicles rated 10,001 pounds or more (49 CFR 387.303T). A contract can ask for more, so read the insurance section.
What does additional insured mean in a shipper contract?
The shipper asks to be covered under your policy for claims arising from your work. It is added by endorsement, not by the certificate alone.
Can a contract change cargo liability?
Carrier cargo liability follows 49 USC 14706 unless the parties change it in writing, as 49 USC 14101(b) allows for some rights.
Can a contract waive federal insurance rules?
No. Under 49 USC 14101(b), parties cannot waive registration, insurance or safety fitness rules.
Who should read the insurance section?
You and your licensed agent or attorney. We explain terms only and do not give policy or legal advice.
This guide is general information, not advice on any policy.
From the Wire: Shippers say carrier reviews now lead with safety and insurance; Truckload capacity shows no sign of loosening.
Sources
- 49 CFR 387.303T: Security for the protection of the public: Minimum limits (last amended Sep 30, 2019)
- 49 USC 14101: Providing transportation and service (accessed Oct 29, 2026)
- 49 USC 14706: Liability of carriers under receipts and bills of lading (accessed Oct 29, 2026)