Cargo Insurance Coverage for New York Carriers
Explore coverage options designed to help protect goods in transit, from motor truck cargo to freight and shipping operations.
Explore Cargo Insurance Options
We can help you review cargo coverage options to protect the goods you transport.
Cargo Theft Is on the Rise
According to Insurance Journal, cargo theft in the U.S. increased 27% in 2024 compared to the prior year, with FBI-tracked losses exceeding $155.6 million. While cargo insurance is not federally mandated for most motor carriers, most shippers and brokers require it as a condition of doing business, making it a practical necessity for transportation operations.
What Is Cargo Insurance?
Cargo insurance is coverage designed to help protect goods while they are being transported from one location to another. It may pay for property losses caused by events that damage cargo during transit, loading, unloading, or temporary storage at terminals and warehouses.
There are two main policy types: all-risk policies, which may cover all causes of loss unless specifically excluded, and named perils policies, which cover only specific events listed in the policy. All-risk coverage is generally more comprehensive.
Coverage Types at a Glance
Motor Truck Cargo Insurance
May protect transported materials and pay for property losses from covered events during transit by truck. Coverage typically applies regardless of fault.
Cargo Legal Liability
Provides coverage only when goods are in the carrier's care and the shipper can demonstrate carrier negligence. A more limited form of protection.
All-Risk Shipper's Insurance
Door-to-door coverage that may protect cargo during every stage of the shipping journey, regardless of negligence determination.
Warehouse-to-Warehouse
Comprehensive coverage that may protect cargo from origin to final destination, including temporary storage periods.
What Cargo Insurance Typically Covers and Common Exclusions
Typically Covered
- Collision & Rollover
Physical damage to cargo from vehicle accidents during transit
- Fire
Cargo damage or destruction from vehicle fires
- Theft (with conditions)
Theft of cargo when security requirements are met
- Weather Damage
Cargo damage from wind, rain, hail, and other weather events
- Loading/Unloading
Damage that occurs during the loading or unloading process
- Debris Removal
Cleanup costs after a covered cargo loss incident
Common Exclusions
- Inherent Vice
Natural deterioration of perishable goods over time is generally excluded
- Improper Packing
Losses due to inadequate packaging or securing of cargo
- Unattended Vehicle Theft
Theft when a loaded truck is left in a non-secure location may be excluded
- Reefer Breakdown
Simple mechanical failure of refrigeration units is typically not covered
- Delay or Loss of Market
Financial losses from delayed deliveries or lost market value
- War & Terrorism
Typically excluded unless added by endorsement
Federal Requirements and Practical Considerations
While cargo insurance is not federally mandated for most motor carriers, the FMCSA does require public liability insurance, and many business relationships effectively make cargo coverage a necessity.
FMCSA Public Liability Requirements
Household Goods Movers
Household goods carriers are the exception and must file proof of both public liability and cargo insurance with minimum coverage of $5,000 per vehicle plus $10,000 per occurrence.
Practical Reality: While not legally mandated for most carriers, few shippers and brokers will conduct business with a carrier that does not carry cargo insurance. It is effectively a requirement for operating in the transportation industry.
Understanding Cargo Insurance Costs
General Cost Ranges
- Average annual cost: Approximately $1,500 per year
- Typical range: $350 - $1,800 annually
- General freight limits: $20,000 - $100,000
- High-value loads: $250,000+ limits available
Costs are approximate and vary by carrier, cargo type, and risk profile.
Key Pricing Factors
- Type of cargo: Electronics and pharmaceuticals cost more than general commodities
- Operating radius: Long-haul interstate routes face higher premiums
- Driver history: Clean records may qualify for lower rates
- Vehicle condition: Newer trucks with safety equipment may get discounts
- Claims history: Previous incidents may increase rates
Protect the Goods You Transport
Let us help you explore cargo insurance options from multiple carriers for your transportation operation.
Understanding Cargo Theft Risks
Cargo theft represents a significant and growing risk for transportation businesses. Understanding these trends can help inform your coverage decisions.
Most Targeted Cargo Types
- • Electronics and technology
- • Food and beverage
- • Pharmaceuticals
- • Apparel and footwear
- • Alcohol and tobacco
- • Building materials
Other Key Transit Risks
- • Collision and rollover damage
- • Vehicle fires
- • Weather events (wind, hail, flooding)
- • Improper loading and cargo shifting
- • Refrigeration equipment failure
- • Vandalism
Frequently Asked Questions About Cargo Insurance
Is cargo insurance required by law?
For most motor carriers operating interstate, cargo insurance is not federally mandated by the FMCSA. However, household goods movers must maintain minimum cargo coverage. While not legally required for general freight carriers, cargo insurance is practically necessary because most shippers and brokers require it as a condition of doing business.
What is the difference between cargo insurance and cargo liability?
Cargo insurance may pay when cargo is damaged regardless of fault, while cargo liability insurance typically protects the carrier only when the carrier's negligence caused the loss. Cargo insurance generally provides broader protection for the cargo owner.
Does cargo insurance cover theft if my truck is left unattended?
Many cargo insurance policies include an unattended vehicle exclusion. If a loaded truck is stolen after being left in a non-secure location, claims may be denied. Coverage typically requires specific security measures when vehicles are parked. Policy terms vary, so review your specific requirements.
Are perishable goods covered if they spoil during transit?
Coverage for spoilage depends on the cause. Most policies exclude losses from inherent vice (natural deterioration). Spoilage from simple mechanical breakdown of refrigeration is typically not covered. However, if spoilage results from a covered peril like a collision that damaged the reefer unit, coverage may apply.
How much cargo insurance do I need?
Coverage limits typically depend on the maximum value of cargo you transport at any given time. General freight operations may carry $20,000 to $100,000 limits, while those hauling high-value goods often need $250,000 or more. Many shippers require minimum coverage amounts as a condition of doing business.
Does cargo insurance cover delays in delivery?
Standard cargo insurance policies typically do not cover financial losses from delayed deliveries or loss of market value, even if the delay was caused by a covered event. Some policies may offer delay coverage as an optional endorsement.
Related Coverage for Transportation Operations
Cargo insurance typically works alongside other business coverages to provide broader protection for transportation operations:
Commercial Auto
Covers bodily injury and property damage liability for your trucks and drivers.
Trucking Insurance
Comprehensive programs for trucking operations including liability, physical damage, and cargo.
General Liability
Covers bodily injury and property damage from business operations at your facilities.
Workers' Compensation
Mandatory coverage for employee injuries during loading, unloading, and delivery.
Important Information
This information is provided for general educational purposes only and does not constitute insurance advice or policy recommendations. Coverage features described are examples and may not be available in all policies or from all carriers. Actual coverage is subject to the terms, conditions, and exclusions of the policy as issued. Please consult with a licensed insurance professional to discuss your specific coverage needs and options. Stan Steele Agency is licensed in New York State.
Protect Your Cargo on Every Route
Whether you operate a single truck or a fleet, we can help you explore cargo insurance options from multiple carriers. Let us present available coverage that may fit your transportation needs.
Serving New York transportation businesses since 1969
