Here's an unpopular opinion: most trucking companies have absolutely no idea what their motor truck cargo policy actually covers. And if we're being honest? Most agents aren't explaining it properly either. Then everyone acts shocked when a claim gets denied.
We need to do better — on both sides. As an agency that digs deep into cargo forms (yes, we're the people who actually enjoy reading insurance policy language), we see the same problems over and over again. And almost every single one of them is preventable with a real conversation upfront.
The "General Freight" Problem
When we ask a new client what they haul, one of the most common answers we get is "general freight." And every time we hear it, we push back — because "general freight" means absolutely nothing when it comes time to file a claim.
Be Specific or Be Sorry
Your cargo policy is only as good as the commodity description on your application. If your agent didn't ask you to get specific about what actually goes into your trailer — the types of goods, their value, how they're loaded and secured — then your policy might not cover what you think it covers. When a claim hits, the insurance carrier isn't going to accept "general freight" as an answer. They're going to look at exactly what was on the truck, compare it to what's on your policy, and make a decision from there.
The Hotshot Auto Trap
Here's a real-world example we see constantly: hotshot carriers saying they haul "flatbed stuff" — construction materials, equipment, machinery. Then one day they spot a high-paying load to haul automobiles. Great money, right?
Except here's the problem: autos are most likely not covered on your cargo policy. A huge number of motor truck cargo forms straight-up exclude automobiles. If that load gets damaged in transit, you're paying for it out of pocket — and a few damaged vehicles can easily wipe out months of revenue.
The Golden Rule
Always check your cargo policy before you take a load, before there's a claim, and before it destroys your entire business. If you're not sure whether a commodity is covered, call your agent before you hook up to that trailer.
Common Cargo Exclusions You Need to Know
Motor truck cargo policies are non-standardized, which means exclusions vary wildly between insurance carriers. But here are some of the most common exclusions we see across the industry. If you're hauling any of these — or even thinking about it — you need to verify your coverage immediately.
Automobiles & Vehicles
One of the most commonly excluded commodities, especially on flatbed and hotshot policies. Requires a specific endorsement.
Electronics & Technology
High theft target. Most policies exclude or sublimit coverage for electronics, computers, and tech equipment.
Pharmaceuticals
Temperature sensitivity and high value make pharma loads a frequent exclusion on standard cargo forms.
Tobacco & Alcohol
Regulated commodities with high theft risk. Almost always excluded unless specifically endorsed.
Jewelry & Fine Art
Extremely high value per unit makes these commodities nearly impossible to cover under standard cargo policies.
Refrigerated / Perishable Goods
Reefer breakdown claims are common. Many policies exclude or heavily restrict coverage for temperature-controlled cargo.
Hazardous Materials
The liability exposure alone makes hazmat a standard exclusion. Requires specialized coverage and endorsements.
Live Animals
The unique risks of transporting live animals — mortality, escape, injury — put them outside most standard cargo forms.
This list isn't exhaustive. Every carrier's form is different, and some have exclusions you'd never expect. That's exactly why reading your actual policy — not just the declarations page — matters.
Why This Is an Agent Problem Too
This isn't just about trucking companies not reading their policies. It's also about agents not doing their job properly at the point of sale.
Our job as agents isn't just to sell a policy. It's to educate and protect. If we're not asking the hard questions upfront, we're failing our clients. Period.
What Trucking Companies Should Do Right Now
Pull Out Your Cargo Policy and Actually Read It
Not just the declarations page — the actual form. Look at the exclusions section. Look at commodity restrictions. Look at sublimits. Know what's covered and what isn't.
Be Specific About What You Haul
Don't say "general freight." Tell your agent exactly what types of goods go on your trucks, what they're worth, and how they're transported. The more specific you are, the better your coverage will be.
Check Before You Take a Load
If a load comes up that's outside your normal commodity type — especially autos, electronics, or any high-value goods — call your agent before you accept it. A two-minute phone call can save you from a six-figure loss.
Ask Your Agent the Hard Questions
What commodities are excluded from my policy? What's my cargo limit vs. my theft sublimit? Are there any conditions that would void my coverage? If your agent can't answer these clearly, that's a red flag.
Not Sure What Your Cargo Policy Covers?
We'll review your policy with you — line by line if we have to. Nova Coverage specializes in trucking insurance, and we believe in educating our clients before a claim ever happens.
The Bottom Line
Cargo policies are typically the lowest-cost coverage in your entire insurance program. Getting the better policy — the one with broader coverage, fewer exclusions, and the right commodity list — almost always pays for itself. The difference between a cheap policy and the right policy could be a few hundred dollars a year. The difference between being covered and not being covered on a claim could be hundreds of thousands.
If your agent can't answer these questions — that's a red flag.
What commodities are excluded? What's the theft sublimit? Are autos covered? What about reefer breakdown? What conditions void coverage? Your agent should know these answers cold. If they don't, it might be time for a new agent.
