4 Tips for Agents to Address Cargo Coverage Gaps

• July 27, 2026

By Peter Niro

A truckload of perishables arrives at the dock, the refrigeration system is operating, but spoilage occurred. The log shows the system was cycling on and off in transit—not running continuously as required—because the driver inadvertently set the refrigeration unit to cycle sentry mode. Load rejected.

Nearby, a tarped load of steel arrives in a flatbed trailer with an undetected hole in the tarp. Much of the load is damp after driving through a storm. Some of it is already showing rust. Load rejected.

When situations like these expose gaps in motor truck cargo coverage, it stresses the supply chain. The shipper expects to be made whole for the loss of goods, the broker risks losing a business relationship with the shipper, and the motor carrier might face a substantial liability that endangers its business.

These risks aren’t new. The risk of cargo getting damaged in transit has always been part of trucking. But market expectations continue to evolve, and it is critical to understand what clients are hauling and how it intersects with their cargo coverage.

By helping their clients understand the risks they face and the insurance coverage options available to protect them, agents can help deliver value throughout the supply chain. In working with brokers and agents across the country, it’s clear that motor carriers can benefit from broad form motor truck cargo coverage. Further, many brokers prefer it, particularly with respect to damage attributed to wetness, rust, corrosion and temperature control.

Here are four tips for agents working with trucking clients:

1) Know your policy language and exclusions. Not every cargo form reads the same way. Agents should understand exactly what is excluded and under what conditions coverage applies. If a client is transporting temperature-controlled loads, will the cargo form cover driver error scenarios or extreme heat conditions that cannot be overcome by the refrigeration unit? Will the cargo form cover damage attributed to wetness, humidity or corrosion? Is the client hauling any goods that are explicitly excluded in the cargo form?

2) Understand your client’s operations. Ask detailed questions. What are they hauling? What’s the average load value? Who are their brokers and shippers? What are their contractual obligations? Some clients may need refrigeration breakdown coverage, which often requires an endorsement to amend policy language and may coincide with a higher rate level. Other motor carriers may focus on dry van or flatbed freight with entirely different risk profiles.

3) Discuss and review sublimits. If a client purchases $100,000 in cargo coverage, it’s important to discuss whether any sub-limits may also apply. Cargo coverage typically includes valuable sub-limits for debris removal, earned freight, and sue and labor—the cost of reducing further damage to the load. These details matter enormously in the event of a claim.

4) Invite conversations about risk prevention. Talking with clients helps agents understand their business, and it helps clients understand what’s covered and why. These discussions can uncover vulnerabilities before they lead to losses, whether it’s cargo securement practices, temperature-control procedures or contractual requirements. By taking a proactive approach to risk management, agents reinforce their role as trusted advisors and help clients prevent claims before they occur.

The trucking industry operates on relationships and trust. When cargo is damaged in transit, the question quickly becomes whether the client has the right coverage in place to respond. Agents can help by guiding clients to invest in cargo coverage that aligns with the needs of their business, which, in turn, helps instill confidence and protects the relationship they’ve built with brokers and shippers.

That confidence benefits everyone across the supply chain and reinforces the value of working with knowledgeable insurance agents. In this dynamic, agents play a pivotal role: They are advocates, educators and translators. Bridging gaps in coverage starts with bridging gaps in understanding.

Peter Niro is a product development manager at Progressive Insurance.