Question 1

What does motor truck cargo NOT cover?

Accepted Answer

Standard exclusions include cargo loaded improperly by the shipper, contraband, employee dishonesty (needs separate crime coverage), pollution events from spilled cargo, mysterious disappearance without evidence of theft, freight already damaged when received (called 'pre-existing damage' — accept signature on bill of lading matters), and cargo left in unattended vehicles in violation of policy conditions. Many policies also exclude specific high-risk commodities (electronics, pharmaceuticals, alcohol) unless specifically scheduled.

Question 2

What's the difference between motor truck cargo and motor carrier liability?

Accepted Answer

Motor carrier liability under federal law (49 USC 14706, the Carmack Amendment) is the LEGAL framework for carrier liability to shippers — strict liability for the value of the cargo with limited defenses. Motor truck cargo INSURANCE is the financial product that funds your liability under that law. The federal liability framework exists regardless of insurance; the insurance pays your obligations. Most carriers think of them as the same thing, but they're distinct legal and financial concepts.

Question 3

How do I know what limit to carry per load?

Accepted Answer

Match limits to the highest-value commodity you regularly haul, plus a safety margin. General freight carriers commonly carry $100K per-load minimums. Carriers hauling electronics, pharmaceuticals, or finished automotive products often need $250K–$500K. Specialty haulers (high-value art, perishable seafood, fine wine) may need $1M+ scheduled coverage. Broker contracts often specify minimums; review every broker contract before accepting loads to confirm your limits match the requirements.

Question 4

What's reefer breakdown coverage?

Accepted Answer

Reefer breakdown (refrigeration breakdown) is an endorsement covering cargo spoilage caused by mechanical failure of the refrigeration unit on a reefer trailer. Standard cargo policies often exclude refrigeration breakdown as a 'mechanical' loss; the endorsement adds it back at sublimit (typically $25K–$100K per breakdown). Required for any carrier hauling temperature-sensitive freight — produce, pharmaceuticals, prepared foods. Documentation of pre-trip and post-trip inspections is critical for claim payment.

Question 5

Are unattended vehicle conditions a real issue?

Accepted Answer

Yes, very real. Most cargo policies require attended vehicles or specific security conditions (fenced lot, locked truck, GPS tracking) when leaving cargo unattended. Cargo stolen from an unattended truck overnight at a public truck stop without these conditions can be denied coverage entirely. Florida's high theft rates make these provisions strictly enforced. Read your policy's unattended vehicle provisions carefully and document compliance — fenced terminal storage often makes the difference between a covered claim and a denied one.

Question 6

How is motor truck cargo premium calculated?

Accepted Answer

Premium drivers include annual gross revenue, average load value, commodity types hauled (general freight cheaper than electronics or alcohol), radius of operation, prior cargo claim history, security measures, and selected limits. Florida-based carriers typically pay $2,500–$8,000/year for $100K cargo on a single tractor with general freight; specialty commodities and theft-history carriers pay multiples. GPS tracking and team-driver operations earn premium credits.

Question 7

Is broker liability covered under motor truck cargo?

Accepted Answer

No, that's broker contingent cargo liability — a separate policy. Motor truck cargo covers the carrier's own liability to shippers when the carrier is moving freight. Broker contingent cargo covers brokers when their contracted carrier fails to satisfy a cargo claim. Companies that operate as both motor carrier and broker need both coverages. Confusing the two is a common cause of denied claims when freight is moved on a brokered basis but covered only under a motor carrier cargo policy.

Motor Truck Cargo Insurance

Motor Truck Cargo

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Understanding Motor Truck Cargo

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Motor Truck Cargo — Frequently Asked Questions

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