Freight Glossary
Cargo Insurance
Cargo insurance is coverage purchased to protect the monetary value of freight against loss or damage during transit, independent of the carrier's standard liability limits. It covers the full commercial value of goods, whereas carrier liability is often capped at cents per pound. For example, a 500 pound pallet of electronics worth $15,000 might only recover $2,500 under standard carrier liability without cargo insurance.
Why it matters
Standard carrier liability, typically $0.50 to $5.00 per pound for LTL, rarely covers the actual value of freight, leaving shippers with significant unrecovered losses after a claim. Cargo insurance closes that gap. A single uninsured loss on a high value shipment can wipe out the profit margin on hundreds of successful deliveries.
When to use it
Purchase cargo insurance for any shipment where the freight's commercial value exceeds the carrier's standard liability cap, which is true for virtually all finished goods, electronics, apparel, and CPG products. Annual all-risk cargo policies are more cost effective than per shipment coverage for companies shipping more than 50 loads per month.
How Warp thinks about it
Warp recommends shippers carry appropriate cargo insurance for their freight value. Warp carries standard carrier liability as required, but cargo insurance decisions rest with the shipper based on product value. The Warp driver app and Orbit tracking provide detailed shipment records that support documentation requirements if a cargo insurance claim is filed.