Cargo Insurance
Insurance that protects the value of goods in transit against damage, theft, or loss. Unlike BIPD (which covers third-party liability), cargo insurance covers the freight itself. FMCSA requires minimum cargo coverage for certain authority types. CarrierOk reports cargo insurance amounts and insurer details via API.
Definition
Cargo insurance covers the value of freight being transported by a motor carrier. If goods are damaged, destroyed, or stolen during transit, cargo insurance compensates the shipper for the loss. This is fundamentally different from BIPD insurance, which covers injuries and property damage to third parties caused by the carrier's operations. FMCSA requires carriers with common authority to carry minimum cargo coverage, though the specific amount depends on the commodities hauled. Household goods carriers, for example, must carry cargo insurance based on the value of goods they transport. Many shippers and brokers contractually require cargo coverage well above FMCSA minimums — $100,000 is a common floor for general freight, with higher-value loads requiring $250,000 or more. Cargo insurance is filed with FMCSA on Form BMC-34 (surety bond) or BMC-83 (trust fund agreement). CarrierOk tracks cargo insurance filings alongside BIPD, showing the on-file amount, required amount, insurer name, and policy effective dates so that compliance teams can verify coverage before tendering loads.
Why It Matters
For Underwriters
Cargo insurance filings indicate the carrier's declared commodity value exposure — a carrier with only $25,000 cargo coverage hauling high-value electronics is a red flag.
For Brokers
Always confirm cargo coverage meets or exceeds the load value before tender. If the carrier's cargo policy is $50,000 and the load is worth $200,000, you're carrying the gap risk.
For Developers
Compare insurance_cargo_on_file against insurance_cargo_required to programmatically flag carriers operating with insufficient cargo coverage for a given commodity value.
In the API
/v2/profileRelated Fields
insurance_cargo_on_fileinsurance_cargo_requiredinsurance_bipd_on_fileinsurance_bond_on_fileFrequently Asked Questions
What is cargo insurance in trucking?
Cargo insurance protects the value of freight being transported. If goods are damaged, stolen, or lost in transit, cargo insurance reimburses the shipper for the value of the cargo. It is separate from BIPD liability insurance and is filed with FMCSA on Form BMC-34 or BMC-83. Coverage amounts vary based on the type and value of commodities hauled.
How much cargo insurance does a trucking company need?
FMCSA minimum requirements vary by commodity type, but most shippers and brokers contractually require more than the federal minimum. General freight loads commonly require $100,000 in cargo coverage. High-value commodities like electronics or pharmaceuticals may require $250,000 or more. Always verify that the carrier's coverage meets or exceeds your specific load value.
Related Terms
BIPD (Bodily Injury & Property Damage)
The primary liability insurance every interstate motor carrier must file with FMCSA. Minimum coverage ranges from $750,000 for general freight to $5,000,000 for certain hazmat. CarrierOk shows current BIPD coverage amounts, insurer names, policy numbers, and effective dates via API.
Operating Authority
FMCSA-granted permission for a motor carrier, broker, or freight forwarder to operate in interstate commerce. Authority types include common (general for-hire), contract (specific shippers), and broker. CarrierOk tracks authority status changes same-day and alerts subscribers when a carrier's authority lapses or is revoked.
Double Brokering
The illegal practice of a broker or carrier re-brokering a load to another carrier without the shipper's knowledge or consent. Double brokering creates insurance gaps, liability exposure, and fraud risk. CarrierOk's risk signals and authority-type checks help identify carriers associated with double-brokering patterns.