Cargo Liability Insurance: Why It’s Critical for Transportation Businesses
- Nate Jones, CPCU, ARM, CLCS, AU
- Sep 12
- 2 min read
Cargo trucking companies play a vital role in the U.S. supply chain, transporting goods across cities, states, and even the country. But with great responsibility comes significant risk. Damaged, stolen, or lost cargo can lead to costly claims, legal issues, and reputational harm. That’s why cargo liability insurance is a must-have for any transportation business.
What Is Cargo Liability Insurance?
Cargo liability insurance protects trucking companies from financial loss if the goods they’re transporting are damaged, lost, or stolen during transit. Whether you're hauling electronics, furniture, food, or industrial equipment, this coverage ensures you're not left footing the bill for cargo-related incidents.
At Wexford Insurance, we specialize in helping cargo trucking companies nationwide secure the right insurance to protect their freight and their business.
Why Cargo Liability Insurance Is Essential
1. Protects Against Financial Loss
Cargo can be worth thousands—or even millions—of dollars. Without proper insurance, a single accident or theft could bankrupt a small trucking company. Cargo liability insurance covers the value of the goods, helping you recover financially.
2. Builds Trust with Clients
Shippers and brokers want to work with carriers who are insured. Having cargo liability coverage shows you're a professional who takes responsibility seriously, which can help you win more contracts.
3. Ensures Legal Compliance
Depending on your operating area and the type of cargo you haul, cargo insurance may be required by law or contract. Wexford Insurance helps you stay compliant with federal and state regulations, including FMCSA requirements.
4. Covers a Range of Risks
Cargo liability insurance can cover:
Theft
Accidental damage
Fire or natural disasters
Improper handling
Reefer breakdown (for temperature-sensitive goods)
Wexford Insurance offers customizable policies to match the specific risks your cargo trucking business faces.
Essential coverages include:
Physical Damage Coverage
General Liability Insurance
Trailer Interchange Insurance
Common Mistakes to Avoid
Assuming General Liability Covers Cargo
Underinsuring Cargo Value
Ignoring Exclusions
Not Updating Your Policy
How Much Does Cargo Liability Insurance Cost?
Costs vary based on:
Type and value of cargo
Operating radius
Claims history
Coverage limits
On average, cargo liability insurance can range from $400 to $1,800 per truck annually. Wexford Insurance works with multiple carriers to find competitive rates tailored to your business.
Final Thoughts
Cargo liability insurance isn’t optional—it’s a critical part of running a successful transportation business. Whether you're a new venture or a seasoned fleet, Wexford Insurance provides expert guidance and comprehensive coverage to keep your cargo trucking operations protected and profitable. Connect now!
