Contrary to what many shippers assume—depending on the freight being transported— most motor carriers are not required by law to have cargo insurance coverage. Even when a motor carrier is covered, shippers may be surprised to learn that there is a significant list of specific commodities excluded from a standard cargo insurance policy and equally surprised to learn that there are also situational circumstances in which these policy coverages may also be denied. Depending on the specific arrangement with each carrier and the nature of the services being offered, there may be release rates further limiting the carriers liability for damage or loss related to the movement of their freight.
