Hot shot cargo insurance protects the freight on your trailer, which your liability policy doesn't cover. Most hot shot operators end up choosing between $100,000 and $250,000 of motor truck cargo coverage, and the right answer depends far more on what you haul than on any rule. Neither amount is a federal cargo requirement for ordinary freight carriers. The limit you need is set by the value of your loads and by the contracts you sign.
Is Cargo Insurance Required by Federal Law?
For general freight, no. The federal financial-responsibility minimums in 49 CFR 387.9 cover public liability, meaning bodily injury, property damage to others and environmental restoration. They don't cover the freight you're carrying.
The federal cargo requirement that does exist applies to household goods motor carriers. Under 49 CFR 387.303T(c), those carriers must have security of $5,000 for household goods on any one motor vehicle, and $10,000 for losses at any one time and place. If you haul equipment, steel or parts and not household goods, that rule doesn't apply to you.
So the pressure to carry cargo coverage comes from two places: brokers and shippers who write it into their contracts, and the cost to you if a load is lost and you have to pay for it.
Sizing Hot Shot Cargo Insurance to Your Highest-Value Load
A cargo limit is usually a maximum the policy will pay per load, or per vehicle, depending on the wording. Compare it with your most valuable load, not your average one.
Hypothetical example 1: building materials. An operator mostly hauls lumber, pipe and palletized supplies. Typical loads are worth well under $100,000. A $100,000 limit may fit this work, as long as the commodities aren't excluded.
Hypothetical example 2: equipment. Another operator moves compact track loaders, mid-size excavators and ag equipment. A single machine can be worth more than $100,000 on its own. At that limit, one total loss would leave the operator owing the difference. $250,000, or a per-load increase for specific moves, fits this work better.
Hypothetical example 3: mixed work. Most loads are low value, but a few times a month a broker offers a high-value machine. Taking that load with a $100,000 limit means accepting the gap. Some operators raise their limit. Others decline those loads or ask about coverage for a single trip. The point is to decide before you're offered the load.
To find your number, get the declared value from the bill of lading or the rate confirmation. Don't guess from the size of the load.
What Else Separates Two Cargo Policies
The limit is one line on the policy. These details often matter just as much:
- Commodity exclusions. Many cargo policies exclude or restrict particular commodities, which can include certain vehicles, electronics, alcohol, tobacco, livestock or anything temperature-sensitive. A $250,000 limit pays nothing on an excluded commodity.
- Deductible. A higher deductible lowers what the policy pays on each claim. Check that you could actually pay it out of pocket after a loss.
- Unattended-vehicle and theft conditions. Some policies limit theft coverage when the truck is left unattended, or require certain locks or parking conditions.
- Securement and loading. Open-deck hot shot freight is exposed to shifting, weather and road debris. Read how the policy treats damage from improper securement or from weather.
- Scheduled vs. any equipment. Some policies cover cargo only while it's on scheduled units. If you swap trailers, make sure the new one is listed.
What Broker and Shipper Contracts Ask For
Carrier setup packets usually state a cargo limit, and some ask for more on certain commodities. When you compare $100,000 with $250,000, compare each against the requirements of the brokers you actually want to work with. Missing their minimum keeps you off their loads, regardless of how much coverage you think is enough.
Some brokers also carry contingent cargo for their own protection. It's not your policy and it doesn't replace yours. More on that in the FAQ below.
Premium: What Moves It
Premiums vary by insurer and by operation, so we don't quote ranges here. For cargo specifically, the cost tends to move with:
- the limit you choose and your deductible
- the commodities you haul and how valuable and theft-prone they are
- open-deck or enclosed freight
- your radius and the states you run
- your loss history
Choosing $100,000 to save money only makes sense if your highest-value regular load fits under it and the commodities you haul aren't excluded.
See what our Motor Truck Cargo Insurance page covers, or send your loads and values through the quote request form.
FAQ
Is $100,000 of cargo insurance enough for hot shot trucking?
It can be, if your most valuable regular load is worth less than that and the commodities you haul aren't excluded. Operators who haul heavy equipment often have single loads worth more than $100,000, and for them it isn't enough.
Is hot shot cargo insurance required by the FMCSA?
Not for ordinary freight. The federal cargo requirement in 49 CFR 387.303T(c) applies to household goods carriers: $5,000 per vehicle and $10,000 at any one time and place. For other freight, cargo coverage is driven by broker and shipper contracts and by your own risk.
What does contingent cargo insurance cover?
Contingent cargo is usually bought by a freight broker or shipper. It responds when the motor carrier's own cargo policy doesn't, for example when the commodity is excluded or the carrier's coverage has lapsed. It protects the broker's interest, it doesn't replace your cargo policy, and its exact trigger depends on the policy wording.
How much does hot shot cargo insurance cost?
It moves with the factors listed above, so a figure without your loads attached wouldn't mean much. The reliable number is a quote built on your actual freight and values.
What is a commodity exclusion?
It's a freight type the cargo policy doesn't cover, or covers only on restricted terms. Ask for the full list before you buy, and compare it with what you actually haul.
Is Your Hot Shot Trucking Insurance Classified Correctly?
Whether you're operating a non-CDL hot shot setup, an expedited delivery vehicle, or a CDL truck-and-trailer combination, our commercial trucking insurance specialists can review your operations and help identify appropriate coverage and classification options.
Call 844-967-5247 for a trucking insurance quote.
Sources
- 49 CFR 387.9, Table 1, Schedule of Limits (public liability, not cargo). eCFR, checked 2026-10-08.
- 49 CFR 387.5, definition of "public liability". eCFR, checked 2026-10-08.
- 49 CFR 387.303T(c), household goods motor carriers' cargo liability: $5,000 per vehicle, $10,000 at any one time and place. eCFR, checked 2026-10-08.