How much cargo insurance do I need?
Quick Answer:
Most brokers and shippers require $100,000 minimum cargo coverage. For high-value freight (electronics, pharmaceuticals), you may need $250,000+.
Determining Your Cargo Insurance Limits
Cargo insurance protects the goods you're hauling. Here's how to determine the right amount of coverage.
Minimum Requirements
- Most freight brokers: $100,000 minimum
- Major load boards: $100,000 to post loads
- Direct shippers: Varies by contract
Recommended Limits by Cargo Type
| General Freight | $100,000 |
| Food & Beverage | $100,000–$150,000 |
| Electronics | $250,000+ |
| Pharmaceuticals | $250,000–$500,000 |
| Automotive Parts | $150,000–$250,000 |
| High-Value Goods | $500,000+ |
What Cargo Insurance Covers
- Collision damage to cargo
- Theft of freight
- Fire and weather damage
- Loading/unloading accidents
What's Typically Excluded
- Refrigeration breakdown (need reefer endorsement)
- Mysterious disappearance without proof of theft
- Damage due to improper loading by shipper
- Inherent vice (natural deterioration)
Cost of Cargo Insurance
- $100,000 coverage: $400–$800/year
- $250,000 coverage: $800–$1,500/year
- $500,000 coverage: $1,500–$2,500/year
Tips for Choosing Coverage
- Match your limit to the maximum value load you'll haul
- Check shipper and broker requirements before quoting loads
- Consider reefer endorsement if hauling temperature-sensitive goods
- Review exclusions carefully—some goods need special coverage
Get Your Personalized Estimate
Use our calculator to see estimated costs for your specific operation.
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