Cargo insurance
Also known as: Motor truck cargo insurance · Freight insurance · Goods-in-transit insurance · Carmack liability
Insurance that pays for freight lost, stolen or damaged in transit — bought by the carrier to cover its legal liability for the load, or by the shipper to cover the goods themselves.
At Zarv
Carriers that share Zarv data with their insurer pay 15% to 22% less for cargo insurance.
For interstate trucking, the carrier's liability starts with the Carmack Amendment (49 U.S.C. §14706): the carrier is liable for the actual loss or injury to the property, unless the shipper agreed in writing to a lower declared value. Carriers may not give shippers less than nine months to file a claim or less than two years to sue after a claim is denied. Motor truck cargo insurance is what funds that liability; shippers who want more than the carrier's limit buy their own cargo coverage.
Most of the cost sits in theft, not collisions. Full trailers stolen from yards and truck stops, fictitious pickups by impersonated carriers and loads rerouted after a booking all look alike on paper: a valid carrier, a valid bill of lading, and a load that never arrives. Pricing by commodity, lane and loss history averages that risk over everyone hauling the same goods.
The price moves when the insurer can see the risk of each trip — who is driving, whether the carrier and driver are who they claim to be, where the truck stops and for how long. In Brazilian operations that screen every driver before dispatch, monitor the trip and share that data with the insurer through Zarv, cargo insurance became 15% to 22% cheaper.
Frequently asked questions
Does the Carmack Amendment require a carrier to carry cargo insurance?
No. Carmack sets the carrier's liability for loss or damage; it does not by itself mandate a policy. The FMCSA cargo-liability security requirement in 49 CFR 387.303(c) is written for household goods carriers, at $5,000 per vehicle and $10,000 per occurrence. For general freight, cargo coverage limits are usually set by the contracts with shippers and brokers.
How long do you have to file a cargo claim?
Under the Carmack Amendment a carrier cannot set less than nine months to file a claim, and less than two years to sue from the date it gives written notice that it has disallowed the claim. Check the bill of lading, because the carrier's terms apply within those floors.