Short answer
Cargo insurance pays for loss of or damage to the freight a truck is hauling. FMCSA requires it only of household goods carriers, at $5,000 per vehicle and $10,000 per occurrence. General freight carriers and brokers have no federal cargo minimum, but shippers and brokers require it by contract because carriers are liable for actual loss.
What FMCSA requires
Federal minimums for interstate operations, by registration type.
| Registration | Liability (BIPD) | Cargo | Bond or trust fund |
|---|---|---|---|
| For-hire property carrier, 10,001 lbs or more, non-hazmat | $750,000 | $0 | $0 |
| Household goods carrier | $750,000 | $5,000 | $0 |
| Property broker | $0 | $0 | $75,000 |
| Freight forwarder (property) | $0 | $0 | $75,000 |
From FMCSA’s insurance filing requirements page (updated March 26, 2026) and 49 CFR 387.303. Hazmat carriers have higher liability minimums.
Why brokers require it anyway
Carriers still answer for lost freight. Under the Carmack Amendment, a carrier that takes freight is liable for actual loss or injury to the property. Cargo insurance is how most carriers cover that liability.
Shippers know brokers sit in the middle, so shipper contracts often require the broker to use insured carriers and sometimes to carry its own coverage. That’s why cargo limits show up in the carrier packet and the broker-carrier agreement, and why brokers check them before every booking.
The broker’s own federal requirement is different: the $75,000 BMC-84 bond or BMC-85 trust fund, which protects carriers and shippers if the broker doesn’t pay.
Contingent cargo insurance
Contingent cargo is a broker’s policy that may respond when the carrier’s cargo coverage doesn’t. Typical triggers include a denied claim, a lapsed policy, or an exclusion on the carrier’s side. Terms vary widely by insurer, so read the policy for when it pays, what it excludes, and whether the broker has to show it vetted the carrier.
Treat it as a backstop behind carrier vetting.
What to check on a carrier's certificate
- Limit vs load value. A $100,000 limit on a $180,000 load leaves a gap.
- Deductible. A high deductible can mean a small carrier can’t pay its share.
- Named insured. The company name should match the FMCSA record for the MC number.
- Policy dates. Confirm the policy is in force on the pickup date.
- Scheduled vehicles. Some policies cover only listed trucks or trailers.
- Exclusions. Ask about unattended vehicle, theft, reefer breakdown, and commodity exclusions.
Get the certificate from the insurance agent directly, not from the carrier’s email. The carrier onboarding guide covers the full setup process.
Example: a gap between limit and value
Example, with illustrative numbers. A dry van carrier with a $100,000 cargo limit and a $2,500 deductible hauls a $180,000 load of electronics. The trailer is stolen from an unattended truck stop lot.
The carrier’s insurer points to an unattended vehicle exclusion and denies the claim. The carrier still owes the shipper for the loss but can’t cover $180,000. The shipper turns to the broker. If the broker carries contingent cargo, that policy may respond, subject to its own terms and limits.
Common mistakes
- Booking high-value freight without comparing load value to the cargo limit.
- Accepting a certificate PDF without confirming it with the agent.
- Assuming a carrier’s liability policy covers the freight. It covers injury and damage to others.
- Never reading the exclusions until after a loss.
How FreightVero handles it
In the FreightVero broker TMS, a load can’t clear its carrier checkpoint unless the carrier record shows an approved compliance status, and that rule is live and enforced in the database. Your team sets the status after checking insurance. FreightVero doesn’t verify or monitor certificates today, and the RMIS integration is planned.