Motor truck cargo (MTC) is the policy that covers the freight in your trailer. It's also the policy with the most fine print per dollar of premium in trucking, and the one where a bad assumption gets expensive fast. Here's what it actually does.

What MTC insures

MTC covers your legal liability for the cargo you're hauling, the shipper's freight, in your care, from pickup to delivery. If the load is damaged or destroyed by a covered cause (collision, overturn, fire, theft, and so on) while it's in your custody, the policy pays the claim instead of your bank account.

Note the wording: it's the freight you haul for others. It's not coverage for your truck (that's physical damage), and it's not the same as a shipper's own cargo insurance. Most policies also pick up useful extras like debris removal and pollutant cleanup after a covered loss. Dropping a load of anything across a highway creates costs beyond the freight itself.

The exclusions that actually bite

Every cargo claim denial story traces back to one of these. Read your policy for each:

  • Reefer breakdown. Base MTC often does not cover spoilage from mechanical failure of the refrigeration unit. If you haul temperature-controlled freight, you need reefer breakdown coverage added, and expect requirements attached to it, like maintenance records on the unit or a maximum unit age.
  • Unattended vehicle / theft conditions. Many policies restrict theft coverage when the truck is left unattended, or require the rig to be locked, keys out, in a secured or lit lot, or with specific anti-theft measures. If your policy has an unattended vehicle clause, where you park at night is an insurance decision.
  • Commodity exclusions. Policies commonly exclude or sub-limit high-theft freight: electronics, alcohol, tobacco, pharmaceuticals, jewelry, and similar targets. Hauling an excluded commodity means hauling it bare, even if everything else about the trip is covered.
  • Contraband and illegal goods. No policy covers illegal cargo, and a load that turns out to be stolen or illicit can void coverage for the trip.
  • Loss you caused outside a covered peril. Improper loading or securement gaps can fall outside coverage depending on the form, and freight-charge-only disputes or delay damages generally aren't covered either.

The theme: MTC is peril-based and conditional, not "anything that goes wrong with the load." Know your form.

Limits and deductibles

  • Limit: The standard broker-required cargo limit for general freight is $100,000 per load. That's the number virtually every broker packet asks for. Haul consistently higher-value freight and you'll want a higher limit, because you're liable for the real value, not the number on your certificate.
  • Sub-limits: Watch for lower caps on specific commodities or on theft.
  • Deductible: You'll pick one, commonly in the $1,000–$2,500 range for owner-operators. Higher deductible, lower premium, more skin in the game on every claim.

One trap: if you occasionally haul a load worth more than your limit, the excess is yours. Either raise the limit, buy per-load coverage for the exception, or decline the load, but decide before pickup.

Why brokers ask for it

Brokers require a cargo certificate for the same reason they require liability: when freight is lost, the shipper looks to the broker, and the broker looks to you. A carrier without cargo coverage is a carrier the broker can't safely load. Practical consequences:

  • No cargo cert (usually at $100k), no setup packet approval.
  • A lapse gets flagged by the broker's insurance monitoring almost immediately, and gets you deactivated from their board.
  • Some freight (produce, meat, high-value) draws specific requirements: reefer breakdown coverage, named commodity coverage, or higher limits.

Endorsements worth knowing

Ask your agent whether these fit your operation. They're cheap relative to the claims they cover:

  • Reefer breakdown: spoilage from mechanical failure of the refrigeration unit. Non-negotiable if you pull a reefer.
  • Earned freight: reimburses freight charges you lose when a covered cargo loss keeps you from delivering.
  • Trailer interchange: physical damage coverage for a non-owned trailer in your possession under an interchange agreement (common in intermodal/drop-and-hook work). Related but distinct: non-owned trailer physical damage for when you're pulling someone else's box without a written interchange agreement.
  • Debris removal / pollution cleanup increases: base amounts can be thin next to a real highway cleanup bill.
  • Loading & unloading: confirms coverage while freight is being put on or taken off the truck, where a surprising share of claims happen.

How McClure helps

Cargo forms vary more between insurance carriers than almost any other trucking coverage: same premium, wildly different exclusions. When we quote your cargo, we match the form to what you actually haul: your commodities, your parking situation, your reefer age, your brokers' requirements. If you've already got a policy, send us the form and tell us what you pull. We'll flag the gaps before a claim does.