Most shippers assume that if a container is damaged on a truck, “the trucker’s insurance pays.” Sometimes true — but carrier liability and cargo insurance are different instruments, with different limits, exclusions, and burdens of proof. Understanding the difference before something goes wrong is the cheap version of this lesson.

The three layers of protection in a drayage move

1. Motor carrier liability (mandatory)

Every for-hire trucking company must carry liability coverage for bodily injury and property damage to third parties. This protects the public — not your cargo. A carrier can be fully compliant and still leave your freight effectively uninsured.

2. Motor truck cargo coverage (the carrier’s cargo policy)

This covers the carrier’s legal liability for cargo in its care. Key phrase: legal liability. If the loss falls under a recognized carrier defense — an act of God, inherent vice of the goods, shipper packing error — the carrier may not be liable at all, and its cargo policy pays nothing. Limits also matter: a common limit is $100,000 per truck, and a single loaded container routinely exceeds that.

3. Shipper’s cargo insurance (all-risk)

Purchased by the cargo owner (often via freight forwarder or broker), all-risk marine cargo insurance follows the goods door to door, including the drayage leg. It pays based on the loss itself, not on proving the trucker’s negligence. For high-value freight this is the layer that actually makes you whole.

Where the gaps show up in real drayage claims

• Value exceeds carrier limits. Electronics, pharmaceuticals, and even a dense load of apparel can be worth several times a $100k cargo limit.
• Theft from parked equipment. Some carrier policies exclude or restrict theft coverage when a loaded trailer is unattended. Secure, monitored yards are the practical control here — one reason our Miami facility runs 24/7 secured access; see yard storage.
• Reefer breakdown. Temperature-related loss is frequently excluded from base cargo forms unless a reefer breakdown endorsement exists. If you ship perishables, ask specifically.
• Chassis and equipment damage. Damage to the container or chassis itself is an interchange issue governed by UIIA rules — separate from cargo. Our post on drayage carrier credentials covers why UIIA standing matters.

What to request before your container moves

1. A current certificate of insurance (COI) naming coverage types, limits, and expiration dates — direct from the carrier’s agent, not a screenshot.
2. Cargo limit adequate to your load value, or a plan to bridge the gap with shipper’s interest coverage.
3. Theft and unattended-vehicle terms if freight will stage overnight.
4. Reefer breakdown endorsement for temperature-controlled loads.
5. Confirmation the carrier is asset-based or discloses its subcontracting. When a move is brokered down two levels, the COI you collected may belong to a company that never touches your box. Asset-based operations like Go Drayage’s container drayage keep custody and coverage in one place.

Declared value and the fine print

Bills of lading often limit carrier liability to a stated amount per pound or per shipment unless a higher value is declared and paid for. If your BOL has a released-value clause and you didn’t declare, your recovery may be a fraction of invoice value even when the carrier is clearly at fault. Read the tariff terms once; it takes ten minutes and settles most future arguments.

The honest summary

Carrier cargo coverage is real but conditional. All-risk cargo insurance is broader but costs money. The right answer depends on load value, commodity, and how much staging your freight does between port and dock. For a specific move, ask your insurance broker to review the drayage leg explicitly — and pick carriers whose custody chain is short enough to insure cleanly. Need numbers for a specific lane? Request a quote and ask us about coverage while you’re at it.

Frequently asked questions

Is my cargo automatically insured during drayage?
No. The carrier has liability coverage that pays only when the carrier is legally liable, subject to policy limits and exclusions. Full protection for the goods themselves comes from all-risk cargo insurance purchased by or for the cargo owner.

What cargo insurance limit should a drayage carrier have?
$100,000 motor truck cargo is common; better operators carry more. Compare the limit to your typical container value, and bridge any gap with shipper’s coverage.

Who pays if the container itself is damaged?
Container and chassis damage is settled under interchange agreements (UIIA) between the carrier and equipment owner — separate from cargo claims.