The law makes you responsible for the cargo; the broker contract makes you prove you can pay for it. Under the Carmack Amendment, an interstate carrier is generally liable for loss or damage to goods in its care, with only narrow defenses. A cargo policy is what pays that liability. The details that decide whether it actually pays are the limit, the commodities listed, reefer breakdown coverage, and the theft and unattended-vehicle conditions.
What does FMCSA actually require?
For a for-hire property carrier, FMCSA requires a public liability filing (a BMC-91 or BMC-91X) covering injury and damage you cause to others on the road. It does not require a cargo filing for general freight carriers.
Household goods carriers are the exception. A mover hauling household goods interstate must also have a BMC-34 cargo filing on record. California household movers additionally operate under a state permit with its own insurance requirements. How I insure moving companies.
So “not required” is true only in the narrowest sense. The federal government is not checking for it. Everyone you want to haul for is.
Who requires cargo insurance?
- Freight brokers. Broker-carrier agreements nearly always require cargo coverage, commonly $100,000, with higher limits for higher-value freight.
- Shippers and direct customers. Contracts often set a cargo limit and sometimes make you liable for the full value of the load even above your policy limit.
- Load boards and freight platforms. Most verify cargo coverage before they let you book.
- Motor carriers you lease on to. If you run under someone else’s authority, the lease agreement spells out whose cargo policy applies, and that is worth reading closely.
Read the agreement for the limit, the commodities it expects you to haul, and whether the broker wants to be named on your certificate. What brokers carry on their side.
Carmack liability: why you are on the hook either way
The Carmack Amendment is the federal rule governing loss and damage to freight moving in interstate commerce. In general terms, a carrier that accepts goods in good condition and delivers them damaged, or not at all, is liable for the actual loss, and the carrier carries the burden of showing one of a few narrow defenses applies, such as an act of God, an act of the shipper, or the inherent nature of the goods.
That liability exists whether or not you carry cargo insurance. Without a policy, a stolen load or a rollover with a full trailer is a claim against your business directly. Carriers can sometimes limit their liability through written agreements with the shipper, but that is a contract question to settle before the load, not after.
What cargo policies often exclude or restrict
Two cargo policies with the same limit can pay very differently. These are the provisions worth reading before you sign:
- Unattended vehicleMany policies restrict or exclude theft of a loaded truck or trailer left unattended, especially overnight, unless specific security conditions are met.
- Theft limitationsSome forms carry a lower theft limit, a higher theft deductible, or exclude theft of certain commodities altogether.
- Excluded commoditiesElectronics, alcohol, tobacco, pharmaceuticals, cell phones, metals and other high-theft freight are commonly excluded or need to be specifically listed.
- Refrigeration breakdownSpoilage from a reefer unit failure is generally not covered unless the policy includes a reefer breakdown endorsement.
- Per-vehicle vs per-load limitsThe limit usually applies per truck or per occurrence, so two loaded trailers at a terminal may not each get the full limit.
- Scheduled equipmentSome policies cover cargo only on listed power units and trailers. A new truck that is not added may not be covered.
Refrigerated freight and reefer breakdown
If you haul anything temperature-controlled, the reefer breakdown endorsement is the coverage that matters most, because spoilage is the most common reefer claim and the base cargo form usually excludes it.
- Mechanical breakdown is the trigger. Most endorsements cover sudden failure of the refrigeration unit, not a unit that was never turned on or set to the wrong temperature.
- Maintenance records matter. Many insurers require documented servicing of the unit and may ask for download data after a loss.
- Running out of fuel is often treated differently from a breakdown. Ask how your form handles it.
- Waiting time and delay without a breakdown is generally not covered.
How to choose a cargo limit
Start from the most valuable load you realistically haul, not from the broker minimum. The $100,000 that most brokers ask for is a floor for getting loads, and plenty of freight is worth more than that. If one lane or customer pays well because the freight is valuable, the cargo limit should be built around that lane.
Be accurate about commodities on the application. A cargo claim on a commodity you did not disclose, or one the policy excludes, is the most avoidable denial in trucking. If your freight mix changes, tell me before the first load, not after. Cargo & shipment insurance.
What to have ready for a quote
- Your USDOT and MC numbers, and how long the authority has been active.
- Commodities, with a rough share of each and the highest-value load you haul.
- Equipment: power units and trailers, including reefer units and their age.
- Where trucks park overnight and during rest breaks, and what security you use.
- Broker and customer requirements from your carrier agreements.
- Cargo losses in the last few years, with loss runs if you have prior coverage.
Common questions
Is cargo insurance required by FMCSA?
Not for general freight carriers. FMCSA requires a cargo filing, the BMC-34, only from household goods carriers. Brokers and shippers, however, almost always require cargo coverage by contract.
How much cargo insurance do brokers require?
Most broker-carrier agreements ask for at least $100,000, and higher-value freight often calls for more. The agreement you sign sets the number, so read it before you choose a limit.
Am I liable for cargo damage if I don’t have cargo insurance?
Generally yes. Under the Carmack Amendment, an interstate carrier is generally liable for loss or damage to freight in its care, with narrow defenses. Insurance pays that liability; going without it does not make the liability go away.
Does cargo insurance cover reefer spoilage?
Usually only with a reefer breakdown endorsement, and typically only for a sudden mechanical failure of the unit. Operator error, wrong temperature settings and delay without a breakdown are commonly excluded.
Is a stolen load covered if I left the truck unattended?
It depends on the form. Many cargo policies restrict or exclude theft from an unattended vehicle unless specific conditions are met, such as a locked, secured truck in an approved location. Ask how your policy handles it before you need it.
General information about motor truck cargo insurance as of October 2026, not legal advice. Carrier liability questions are legal questions; cargo terms, exclusions and conditions differ by policy. Coverage depends on underwriting and the terms, conditions and exclusions of the policy actually issued.