Aug 25 2025 19:35

Transportation Insurance: Key Coverages

Key Coverages in Transportation Insurance: Auto Physical Damage & Motor Truck Cargo

 

In our last post, we explored the broad scope of transportation insurance solutions available in the E&S marketplace. Now, let’s take a closer look at some of the core coverages that protect trucking, logistics, and fleet operations from costly risks on the road:

 

Auto Physical Damage (APD)

Auto Physical Damage coverage protects against all risks of direct physical loss of, or damage to, any scheduled automobile. This applies across the United States, the District of Columbia, and Canada —ensuring your fleet is protected wherever business takes you.

Available enhancements include:

  • Gap Coverage – Covers the difference between an outstanding loan/lease balance and the actual cash value after a loss.
  • Excess APD – Provides an additional layer of protection above standard APD limits.
  • Rental Reimbursement – Helps cover the cost of a temporary replacement vehicle to keep operations running.
  • No Co-Insurance Clause – Simplifies recovery by eliminating the requirement to insure to value.

With these options, APD coverage can be customized to meet the unique needs of each operation, whether you run heavy trucks, delivery vans, or mixed fleets.

 

Motor Truck Cargo (MTC)

Protecting the freight you carry is just as important as protecting the vehicles themselves. Motor Truck Cargo coverage safeguards against direct physical loss or damage to lawful cargo from external causes while in your care, custody, or control—including during loading and unloading.

Key features:

  • Primary Limits up to $100,000
  • Rating by mileage, gross receipts, or per power unit

This coverage ensures peace of mind for your clients, knowing goods are protected from pickup to delivery.

 

Excess Motor Truck Cargo

For operations hauling higher-value loads, standard cargo limits may not be enough. Excess Motor Truck Cargo coverage provides protection above primary limits, with:

  • Coverage in excess of $100,000, up to $1,900,000 
  • Options available as stand-alone policies or follow-form coverage

This allows trucking companies to take on bigger contracts and higher-value shipments with confidence.

 

Contingent Motor Truck Cargo

When acting as a truck broker, liability doesn’t disappear—it simply changes. Contingent Motor Truck Cargo coverage protects against liability exposures when arranging transportation on behalf of others.

  • Premiums are typically rated based on gross receipts
  • Extends cargo coverage even when the insured is not the direct carrier

This ensures brokers have a safety net when unforeseen cargo claims arise.

 

Why These Coverages Matter

Together, Auto Physical Damage and Motor Truck Cargo (including excess and contingent options) form the backbone of transportation risk management. They protect not just the trucks on the road, but also the cargo they carry, and the business relationships tied to safe delivery.

 

Have questions about Auto Physical Damage or Cargo Coverage? Contact our team today to discuss options tailored to your fleet or logistics operation.