Cargo and Freight Insurance

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Quick answer: Cargo and freight insurance covers the goods you haul against loss or damage in transit, for example from a collision or theft. Most cargo shipped under a proper bill of lading is covered, but policies exclude some items, such as alcohol, tobacco, currency and valuables, dangerous goods and living creatures. Your shipping volume and the value of your loads drive how much coverage you need.

Whether you’re transporting raw materials, run a home moving service, or are shipping products from port to store, we have customizable Cargo insurance and Freight Insurance options to fit your needs. Transporting cargo safely and on time are critical to your business and without cargo insurance and freight insurance, your operations could be at serious risk if any of your vehicles are involved in a serious collision.

Most cargo that is shipped under a proper bill of lading will be covered by your cargo insurance. Major exclusions include, but are not limited to:

Alcohol, Tobacco, some medicines, and any illegal drugs
Currency and Valuables (especially art, jewelry, coins, and cash)
Items considered dangerous (acids, explosives, or radioactive items, including some fireworks and other celebratory products)
Living creatures
Anything owned by your company

If you plan to ship anything excluded from cargo insurance, it may be covered by another policy (especially if you own the items in question). Otherwise, you can talk to one of our agents about alternatives for cargo insurance and freight insurance that can actually cover the transportation of high-risk items.

Freight insurance

Your shipping volume is a major factor in finding just how much insurance you need. Large-truck crashes remain a routine exposure on U.S. roads: NHTSA estimates that 548,521 large trucks were involved in police-reported traffic crashes in 2024 (Traffic Safety Facts 2024 Data: Large Trucks). Many of those incidents are not the fault of the commercial truck driver, but they still happen often enough that cargo and liability limits need a careful look.

Collisions are not the only form of loss either — cargo theft remains a serious problem on some lanes and at some terminals, so physical security and coverage terms matter as much as crash exposure.

Larger trucking companies require more insurance in case there are problems with multiple vehicles, such as thefts from multiple trucks parked in one place. Even smaller companies are at risk, though, making cargo insurance and freight insurance one of the most important defenses of any hauling company.

How to get a cargo and freight insurance quote

Five steps to prepare a cargo and freight insurance submission for hauling anywhere in the U.S. This is brokerage guidance from Lions & Coventry Insurance Services, not legal advice and not a premium quote.

Gather your operating details — Have your legal business name, any USDOT and MC numbers, the states and regions where you haul, and whether you work as a motor carrier, a freight broker or both. Carriers write motor carrier cargo coverage and broker contingent cargo coverage differently.
List the commodities you haul and their values — Write down every commodity you carry, the typical and highest value per load, and any refrigerated, high-theft or hazardous loads. Excluded or high-risk commodities may need a specialty market, so leave nothing out.
Describe your equipment, drivers and security — List your trucks and trailers, including any reefer units, along with driver experience, where loads are parked overnight and any theft controls such as GPS tracking, locks or secured yards. Theft and reefer breakdown are common cargo claims, so carriers ask how you manage them.
Collect contract requirements and loss runs — Pull the cargo limits and insurance terms required by your shippers, brokers and load boards, and request loss runs from your current or prior carriers. Contract limits often decide the minimum coverage you need.
Send the submission to a licensed broker — Share the facts above with us. We compare available markets for cargo, auto liability and related coverages, and explain whether a placement is admitted or surplus lines. We do not quote a premium before underwriting reviews the risk.

Related pages: trucking insurance, commercial auto and inland marine. Ready to start? Request a quote or call (916) 967-7715.

Talk to a licensed producer: call (916) 967-7715 or request a quote online. Lions & Coventry Insurance Services, Est. 2009, CA Lic. #0G22084.

Cargo and freight insurance FAQ

What does cargo and freight insurance cover?

It covers the goods you transport against loss or damage while they are in transit, for example after a collision or a theft. Most cargo that is shipped under a proper bill of lading will be covered by your cargo insurance, subject to the policy terms and limits.

What does cargo insurance usually not cover?

Common exclusions include alcohol, tobacco, some medicines and any illegal drugs; currency and valuables such as art, jewelry, coins and cash; dangerous items such as acids, explosives and radioactive materials; living creatures; and anything owned by your company. Items you own may be covered by another policy, and some high-risk loads can be placed with specialty markets, so ask before you ship.

How much cargo coverage do I need?

Your shipping volume and the value of the loads you carry are major factors. Larger operations may need more coverage for losses involving several vehicles at once, such as thefts from multiple trucks parked in one place. Shipper and broker contracts may also set the cargo limit you must carry.

What information do I need for a cargo insurance quote?

Have your business name and any USDOT or MC numbers, the commodities you haul, the typical and highest value per load, the number of trucks and trailers, where you operate, how loads are secured and stored, any cargo limits your contracts require, and your prior claims history.

What drives the price of cargo and freight insurance, and how do I get a quote?

Price depends on the commodities you haul, the value per load, the number of vehicles, where you operate, how you secure and store loads, the limits you need, and your claims history, so we do not publish rates. Call (916) 967-7715 or send your details through our contact page, and a licensed producer will review your business and shop the coverage with carriers that write your type of cargo.

Brokerage guidance, not legal advice. Coverage depends on the policy form, underwriting and carrier availability.