Does commercial auto cover cargo I am hauling for a client?

A standard commercial auto policy does not cover cargo. It covers your liability for bodily injury and property damage you cause to others, and it can cover physical damage to your own vehicle if you add comprehensive and collision coverage. The freight riding in the truck is separate property, and the policy treats it that way by design.

What policy covers cargo lost or damaged in transit?

To protect goods you are hauling for a client, you need motor truck cargo insurance. This is a distinct policy that pays when cargo is lost, stolen, or damaged during transit. Covered events typically include collisions, vehicle fires, and theft from the truck. Flooding, loading and unloading accidents, and refrigeration breakdown are sometimes covered by endorsement, but the base policy terms vary by the type of freight involved.

What limits and exclusions apply to cargo coverage?

Several factors determine what cargo coverage actually pays:

• Policy limits. The limit is the maximum the insurer pays per occurrence or per shipment. Limits are set based on the value of what you typically haul. If you regularly move $80,000 loads but carry a $50,000 limit, the $30,000 gap is yours to absorb.
• Exclusions. Common ones include improperly secured loads, certain high-value goods like electronics or jewelry, perishables in some cases, and goods left in your care for an unusually long time. Knowing what your policy excludes before you take a load prevents surprises at claim time.
• Client contract requirements. Many shippers require a certificate of insurance showing cargo coverage at a specified limit before handing over a load. A commercial auto certificate alone will not satisfy that requirement.

For example, a Georgia owner-operator hauling electronics on a route from Atlanta to Charlotte carries a $50,000 cargo limit, but the load value is $90,000. A total loss in a highway accident leaves a $40,000 gap that the carrier is personally responsible for covering.

Does FMCSA authority change what coverage you need?

If you operate as a for-hire carrier under federal motor carrier authority, the FMCSA requires minimum liability limits that a standard commercial auto policy may not meet without a specific filing or endorsement. Owner-operators leasing to a motor carrier also need to confirm exactly which coverages the carrier provides and which exposures remain theirs to fill.

What coverage do shippers typically require from carriers?

Most shippers issuing broker loads require a certificate of insurance confirming cargo coverage, minimum liability limits, and sometimes a contingent cargo endorsement. The certificate must name the shipper or broker as an additional insured in some contracts. A standard commercial auto certificate without cargo coverage does not fulfill these requirements, which can prevent you from accepting loads.

For example, a broker dispatching a refrigerated load of produce requires $100,000 in cargo coverage and proof of reefer breakdown coverage. A driver whose policy only covers dry freight at $50,000 is ineligible for that load until the policy is updated.

How do you find the right limits for your trucking operation?

The right limits and endorsements depend on freight type, haul distances, contract terms, and how your operation is structured. A licensed advisor can review your actual contracts and typical cargo values to identify where your current coverage leaves exposure. Olive Cover, the consumer brand of Olive Insurance Services, LLC, an independent P&C agency, can walk through your commercial auto and cargo setup in a no-cost coverage review. See our commercial insurance page for more on coverage options for trucking and freight operations.