Hot shot cargo insurance: limits, cost, exclusions
By Gustavo · Updated October 2026
Cargo coverage is the policy most hotshot owners buy because a broker asked for it, and read only after a claim is denied. That's backwards. The details of your cargo policy decide which loads you can safely take, and a gap can cost you the full value of a load out of pocket.
What cargo insurance covers
Motor truck cargo insurance pays the shipper or broker for freight that's lost or damaged while in your care: a load that shifts and falls, a machine damaged in a crash, a load stolen from your trailer, freight damaged by a fire. It pays up to the policy limit, minus your deductible, for covered causes.
It does not pay for your truck or trailer (that's physical damage), injuries or damage you cause to others (that's liability) or your own mechanical failures. The whole coverage picture is in hot shot insurance.
Limits brokers ask for
| Freight | Typical limit asked | Notes |
|---|---|---|
| General freight, most brokers | $100,000 | The usual default |
| High-value equipment | $250,000 or more | Often set per load |
| Vehicles on a car hauler | Per-vehicle and per-load limits | Policy must cover autos |
| Refrigerated freight | Reefer breakdown coverage | Not common on hotshots |
If a load is worth more than your limit, the difference is your problem after a total loss. Check the value before you agree to haul.
What it costs
| Package | Range |
|---|---|
| Liability only | $6,000 to $15,000 |
| Liability and cargo | $8,000 to $20,000 |
SOURCE: Ranges: LogRock, hotshot insurance cost, 2026 (checked Oct 2026). The cargo share is our reading of the difference between the two packages, not a separate quote.
The gap between the two packages suggests cargo commonly adds a few thousand dollars a year, but your own number depends on freight types, limits, deductibles and claims history. See hotshot insurance cost for what moves the whole premium.
What moves the cargo premium
- Commodities. Electronics, vehicles, metals and machinery cost more to cover than lumber or building materials.
- Limit. $250,000 costs more than $100,000.
- Deductible. Higher deductibles lower the premium.
- Claims history. Past cargo claims raise it.
- Radius and theft risk. Some lanes and stops have higher theft rates.
Worked example
EXAMPLE
- Compact loader damaged in a slide
- $62,000
- Policy limit
- $100,000
- Deductible
- -$2,500
- Securement documented with photos
- Yes
In this EXAMPLE the claim is paid because the load was within the limit, the commodity was covered and the securement was documented. Change one detail, such as too few tie-downs for the machine's weight, and the claim may be denied under a securement condition.
Common exclusions and conditions
Read these sections of your policy before you haul:
- Excluded commodities: some policies exclude or sublimit vehicles, electronics, tobacco, alcohol, pharmaceuticals or precious metals.
- Unattended vehicle clauses: theft coverage may require the truck to be locked, in a secured lot or attended.
- Securement conditions: improper securement can void a claim.
- Tarping requirements: water damage may not be covered if tarps were required and not used.
- Scheduled vehicles: only trucks listed on the policy are covered.
- Per-load limits: two partials on one trailer count together.
How to avoid denied claims
- Know your exclusions and pass on loads they cover.
- Ask the value of high-dollar freight before you agree.
- Photograph every load secured at pickup and at delivery.
- Note damage on the bill of lading before you leave the shipper.
- Use enough tie-downs for length and weight, with edge protection; check the load securement calculator.
- Report claims quickly with photos, the bill of lading and the delivery receipt.
Your liability for cargo, with or without insurance
Under federal law, an interstate motor carrier is generally liable for actual loss or damage to the property it carries, with limited defenses. That's the Carmack Amendment, 49 U.S.C. 14706. Broker-carrier agreements often add their own cargo terms on top. Insurance is how you pay that liability, but the liability exists whether or not you're insured or whether the claim is covered. Read your broker agreements for cargo clauses, especially any that make you liable beyond your policy limit or for delays.
Filing a cargo claim
- Protect the freight from further damage if it's safe to do so.
- Photograph everything: the load, the securement, the scene and the paperwork.
- Notify the broker and your agent the same day.
- Note the damage on the delivery receipt if the load is delivered, and get the receiver's signature.
- Send the documents: rate confirmation, bill of lading, delivery receipt, photos and any police report.
- Keep a log of every call and email about the claim.
Car haulers and cargo coverage
Vehicles are one of the most common exclusions in general cargo policies. If you haul cars, make sure the policy names vehicles as a covered commodity, check the limit per vehicle and per load, and confirm whether non-running, salvage or high-value vehicles are treated differently. Inspect and photograph every vehicle at pickup, and record damage on the bill of lading or inspection report before you load it. See hotshot car hauler.
Reading the declarations page
Your policy's declarations page lists the limit, deductible, scheduled vehicles and often the covered commodities. Keep a copy on your phone. When a broker sends a load, compare the commodity and value with that page before you sign the rate confirmation.
How to lower cargo cost
Choose a deductible you can pay, avoid commodities with high claim rates if they're not your core freight, keep a clean claims record and ask your agent to re-market the policy at renewal. Get a rough overall range with the truck insurance cost estimator.
Certificates and broker checks
Brokers check your cargo coverage before the first load, usually through a certificate of insurance from your agent. Some ask to be named as certificate holder, and some monitor your coverage and will stop tendering loads if the policy lapses. Keep your agent's turnaround fast and your payments current. If you add a truck or trailer, make sure it's added to the policy before it hauls, since cargo coverage often applies only to scheduled vehicles.
When to raise your limit
If more than an occasional load is worth over $100,000, ask your agent about a higher limit, or about coverage for specific loads. The extra premium is usually small next to the risk of an uncovered total loss. Some brokers will also tell you up front when a load needs a higher limit; ask before you agree.
State notes
Federal rules leave general freight cargo coverage to the market, but some states require cargo coverage for intrastate carriers. See hotshot insurance requirements by state.
Dispatch and cargo risk
With hotshot dispatch, we ask for commodity, value and securement needs on every load and only bring you freight that fits your coverage and your rig. You approve every load, and the broker sends the rate confirmation straight to you. More on load types in hot shot loads.
Questions people ask
Q01Is cargo insurance required for hotshots?
Federal rules don't require cargo coverage for general freight carriers, though household goods carriers have their own rules. In practice, almost every broker and shipper requires it, most often at $100,000.
Q02How much cargo insurance do I need?
At least what your brokers require, usually $100,000. If you haul high-value freight such as new equipment, electronics or several vehicles, you may need $250,000 or a higher limit for those loads.
Q03How much does hot shot cargo insurance cost?
It's usually priced as part of your package. 2026 industry ranges show liability-only policies around $6,000 to $15,000 a year and liability with cargo around $8,000 to $20,000, which suggests cargo commonly adds a few thousand dollars a year. Your freight and limits change it.
Q04What does cargo insurance not cover?
It depends on the policy. Common exclusions or limits include certain commodities, unattended vehicles, theft without signs of forced entry, improper securement, mechanical breakdown of refrigeration, and loads over the limit.
Q05Is cargo insurance the same as physical damage?
No. Cargo covers the freight on your trailer. Physical damage covers your own truck and trailer. Liability covers damage and injuries you cause to others. Most hotshots need all three, though physical damage is optional on a paid-off rig.
Q06What deductible should I pick for cargo?
One you could pay from the bank tomorrow without stopping the business. Higher deductibles lower the premium, but a cargo claim usually comes with lost time and a lost load too.
Q07Does cargo insurance cover cars on a car hauler?
Only if the policy covers vehicles as a commodity and the limit per vehicle and per load is high enough. Many general cargo policies exclude or limit vehicles. Car haulers usually need a policy written for auto hauling.