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Cargo Insurance Guidelines

As an owner/operator or fleet motor carrier, there are several things to consider when making a decision about insuring your load. Key determining factors are the mode of shipping, the linehaul (the pick-up and delivery points), the types of commodities you will be transporting and the value of the shipment. Please see the Federal Motor Carrier Safety Administration (FMCSA) complete list of forms and guidelines of liability insurance relative to obtaining operating authority: http://www.fmcsa.dot.gov/registration-licensing/licensing/registr.htm Consider these objectives: Standard Liability Coverage – Your load will be covered under FMCSA standard legal liability which you must have as an operating authority even if you do not choose to have load coverage. Freight standard insurance is $750,000 to $5,000,000 depending on the commodities transported and $300,000 for non-hazardous freight moved in vehicles under a 10,001 lb weight. Cargo standard insurance is $5,000 per vehicle, $10, 000 per occurrence. Domestic loads: $0.50 per lb per $100 minimum if the load value exceeds $100. International freight: $20 per kg of actual load value if under $20 per kg. International sea freight: $500 per load unit. The load unit may be FCL (full container load which is 1 unit), or LCL (less than container load where… read more »