Cargo insurance

Definition

Cover for the freight itself while it sits in a carrier's care.

Why It Matters

Cargo insurance is separate from the liability policy on the trucks, and buyers routinely assume one covers the other. The limit matters more than the premium: shippers set a minimum before they will tender freight at all, so a limit below what a lane requires is not a savings, it is a class of customer the business cannot serve. Read the exclusions as carefully as the limit, because refrigerated freight, high-value electronics and unattended trailers are commonly carved out of a standard policy and are exactly the freight that pays best.

In numbers: A $100,000 limit is standard on dry van freight and thin for electronics, where one trailer can carry $500,000 of product and the shipper will ask for a certificate before tendering it.