Full truckload insurance is a stack of policies, not a single plan. The carrier holds auto liability coverage for crashes and cargo coverage for the freight. Many shippers add their own cargo policy on top. This guide explains each layer, the usual limits in Canada and the US, and what standard policies leave out.
What Insurance Is Standard for Full Truckload Freight?
Standard full truckload insurance is the set of policies a motor carrier holds to haul a dedicated trailer. It usually includes auto liability, motor truck cargo, and general liability. Together, they protect the public, the freight, and the carrier’s business. No single national rule sets every limit. Regulation, customer contracts, and broker rules shape the numbers. These layers apply to any full truckload shipping service, whether the freight rides in a dry van, on a flatbed, or in a reefer.
| Coverage | Who buys it | What it pays for |
|---|---|---|
| Auto (primary) liability | Carrier | Injury and property damage the truck causes to other people |
| Motor truck cargo | Carrier | Loss or damage to freight while it is in the carrier’s care |
| General liability | Carrier | Claims not tied to the truck, such as an injury at a dock |
| Shipper’s cargo insurance | Shipper, optional | The full value of the goods, including gaps in carrier liability |
Auto liability: the baseline
Auto liability is the core of full truckload insurance. It covers injury and property damage that the truck causes to others. In the US, for-hire carriers of non-hazardous freight in vehicles of 10,001 pounds or more must carry at least $750,000 under 49 CFR 387.9. Shipper contracts often ask for more. A $1,000,000 limit is common for general freight, and some large shippers ask for $2,000,000 or more.
Motor truck cargo: the freight cover
Motor truck cargo insurance is the second pillar of full truckload insurance. It pays when freight is lost or damaged in the carrier’s care. US federal rules do not require it for general freight. In practice, most brokers want at least $100,000 in cargo coverage before they assign a load. A $100,000 limit is common, and high-value freight often calls for $250,000 or more.
General liability and other policies
General liability covers claims that do not involve the truck. A full truckload insurance program may also include physical damage cover for the carrier’s own equipment and reefer breakdown cover for temperature-controlled loads. A shipper does not buy these policies, but it should know which ones the carrier actually holds.
Standard Coverage Limits for Full Truckload Shipments
No single law sets one limit for every load. Regulation sets a floor, and customer contracts raise it. Full truckload insurance limits also shift with the commodity and the border you cross. A multi-stop freight logistics or intermodal freight move can also change who holds the freight, so ask which policy applies at each stage.
| Source of the limit | Figure | What it applies to |
|---|---|---|
| US federal minimum (49 CFR 387.9) | $750,000 | Auto liability for for-hire, non-hazardous freight, 10,001+ lb, interstate |
| Shipper contract | $1,000,000 common, $2,000,000+ for large accounts | Auto liability |
| Broker onboarding | $100,000 or more | Carrier cargo coverage |
| Canadian bill of lading default | $2 per lb ($4.41 per kg), or actual value if lower | Cargo, when no value is declared |
| US hazardous materials | $1,000,000 to $5,000,000 | Auto liability, by material |
Canadian limits and the bill of lading
In Canada, full truckload insurance limits rest heavily on the bill of lading. Carriers are generally presumed liable for loss or damage, but liability is commonly capped at $2 per pound, or the goods’ actual value if that is lower, unless the shipper declares a higher value. Rules differ by province. Ontario treats carriage inside one municipality differently, and Prince Edward Island has not adopted the $2 limit. For lane details, see our pages on freight shipping in Ontario, freight shipping in Toronto, and freight shipping in Brampton.
US and cross-border limits
Full truckload insurance for loads that enter the US must meet the $750,000 federal minimum for for-hire carriers of non-hazardous freight. In 2014, the FMCSA dropped a rule that required Canadian carriers’ policies to come from a US insurer or be reinsured by one. Minimum levels did not change. On US interstate moves, the Carmack Amendment holds carriers strictly liable for cargo loss, unless they prove a recognized defense. Shippers planning cross-border freight shipping should confirm that the carrier’s policy applies in both countries.
Carrier Liability vs. Cargo Insurance: The Gap Many Shippers Miss
Carrier liability and cargo insurance are different things. Carrier liability is what the carrier owes you under the law and the bill of lading. Cargo insurance is a policy that pays on defined events. Standard full truckload insurance held by the carrier may leave a gap when your goods are worth more than the legal limit.
Worked example: the $2 per pound math
The table below shows how the default Canadian limit plays out on three loads. It assumes the $2 per pound limit applies and that no value was declared.
| Load | Weight | Goods value | Maximum recovery | Gap |
|---|---|---|---|---|
| Paper products | 40,000 lb | $60,000 | $60,000 (actual value is lower) | $0 |
| Auto parts | 30,000 lb | $180,000 | $60,000 | $120,000 |
| Consumer electronics | 12,000 lb | $400,000 | $24,000 | $376,000 |
This is an illustration, not a quote. Your bill of lading and province may change the result. The pattern is clear, though. Full truckload insurance leaves little gap on heavy, low-value freight. It leaves a large gap on light, high-value freight. If your goods fall in the second group, ask a licensed broker about shipper’s cargo insurance or about declaring a higher value, which may change the freight rate. Arrange any extra cover before you tender the load. If your freight does not fill a trailer, compare LTL shipping across North America as well.
Case note: certificate holder vs. additional insured
In a December 2025 decision, the Alberta Court of King’s Bench dealt with a stolen trailer of cigarettes worth about $534,000. The contracts required the carrier to carry $250,000 in cargo insurance naming the customer as an additional insured. The policy listed the customer only as a certificate holder. As reported in the trade press, the court applied the $2 per pound limit to the goods but allowed a separate claim for the insurance breach. The total award was $278,894 plus interest. The case shows why full truckload insurance wording matters. Check how your name appears on the policy, not only whether a certificate exists. This note is a news summary, not legal advice.
What Standard Full Truckload Insurance Does Not Cover
Policies come with exclusions and conditions. Read them before you assume a load is covered. Gaps most often appear in three areas.
Temperature-controlled loads
Full truckload insurance rarely covers temperature loss by default. Most base cargo policies exclude loss from temperature changes. A reefer breakdown endorsement usually covers it. One industry guide lists $100,000 to $250,000 per load and $1,000 to $5,000 deductibles as typical, with exclusions for operator error and poor maintenance. If you ship food or medicine, ask for proof of this endorsement. Learn more about temperature-controlled shipping options for perishable freight.
High-value and high-theft goods
Many cargo policies limit or exclude tobacco, and most set limits on jewelry, precious metals, and currency, according to one insurance broker. Full truckload insurance may treat electronics as a special risk that needs underwriting approval. Some policies also exclude employee theft unless you add coverage. Ask the carrier for its written commodity terms before you ship these goods.
Hazardous materials and vehicle conditions
Many cargo policies exclude or limit hazardous loads unless underwriters approve them. Some also set conditions on parking locations and unattended vehicles. A load may fall outside the policy if you miss those conditions, even when a certificate shows cargo coverage.
How to Check a Carrier’s Insurance Before You Ship
A certificate of insurance is a start, not proof of full coverage. Checking full truckload insurance takes five steps, and they take less time than a denied claim.
Five full truckload insurance checks before you tender
- Request the certificate. Confirm the insurer, the policy dates, and the limits for auto liability and cargo.
- Match limits to value. Compare the cargo limit with the value of one full trailer.
- Check your name. If your contract needs additional insured status, confirm it appears on the policy, not only on the certificate.
- Read the exclusions. Look for commodity limits, theft conditions, and temperature rules.
- Verify authority and safety. On US lanes, check the carrier’s FMCSA authority and safety record.
Warning signs worth a second look
- A certificate with expired or mismatched dates
- A cargo limit below the value of a full trailer
- Vague answers about exclusions
- Reluctance to share the policy form
- Legal names that differ between the certificate and the contract
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Frequently Asked Questions
What kind of insurance is standard for full truckload freight?
Standard full truckload insurance is carrier-held auto liability and motor truck cargo insurance, often with general liability. Auto liability covers injury and property damage to others. Cargo coverage pays for freight lost or damaged in the carrier’s care. Limits of $1,000,000 for liability and $100,000 for cargo are common contract asks. A shipper can add its own cargo policy for the full value of the goods.
Is cargo insurance required for full truckload shipping?
Not by US federal rule for general freight, but full truckload insurance contracts usually require it. The $750,000 federal minimum covers auto liability, not cargo. In practice, most brokers will not assign a load without at least $100,000 in cargo coverage, and many shippers set their own minimums. Canadian requirements depend on the province and your contract, so confirm both with a licensed broker.
How much cargo insurance should a full truckload carrier have?
Full truckload insurance should cover the value of one full trailer of your freight. A $100,000 limit is a common starting point, and high-value freight often needs $250,000 or more. Check the limit against your highest-value load, not your average one. Ask about deductibles and sublimits too, because they reduce what a claim pays. A licensed broker can help you set a target for your commodity.
Does the carrier’s insurance cover the full value of my freight?
Not always. In Canada, carrier liability is commonly capped at $2 per pound, or actual value if lower, when no value is declared. A 30,000-pound load worth $180,000 would recover about $60,000 under that default. Your contract may allow more, so read it. Shipper’s cargo insurance can close the gap, and you should arrange it before the load ships.
What is the difference between carrier liability and shipper’s cargo insurance?
Carrier liability is what the carrier legally owes you for loss or damage, and the bill of lading often caps it. Shipper’s cargo insurance is your own policy, and it often pays up to the full value of the goods. Carrier liability depends on law, the bill of lading, and carrier defenses. Cargo insurance responds to covered events and has its own exclusions, deductibles, and claim steps.
Does full truckload insurance cover reefer breakdown?
Usually not by default. Most base cargo policies exclude loss from temperature changes, so carriers add a reefer breakdown endorsement. That cover often excludes operator error, poor maintenance, and known faults. If you ship perishable goods, ask for the endorsement itself, not only the certificate. Check the limit, deductible, and any temperature-monitoring rules. Delays without an actual unit failure are also often excluded.
Do freight brokers need cargo insurance for truckload loads?
Many carry contingent cargo coverage, which responds if the carrier’s cover does not. The motor carrier’s insurance is primary. One insurance specialist quoted in the trade press calls $100,000 a standard minimum for this cover. Brokers that take on cargo liability themselves may need different, primary coverage. Limits differ by broker, so ask which policy applies to your load and request the certificate.
How long do I have to file a truckload cargo claim?
On US interstate moves, file a written claim within 9 months of delivery. The carrier must acknowledge it within 30 days, then pay, decline, or offer a compromise within 120 days. You must file a lawsuit within 2 years of a denial. Canadian time limits depend on the bill of lading and the province, so check your documents and report damage as soon as you find it.
