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Insurance for people who move freight

The commercial coverages and bonds that trucking and logistics businesses get asked about, explained in plain terms.

Short answer

Trucking and logistics businesses carry a mix of commercial coverages: some protect other people, some protect your equipment and freight, and some protect you and your drivers. Which ones apply depends on how you operate, who you haul for, and what your contracts and any lender require. BreadRoute explains each coverage and sends insurance requests to licensed insurance partners, who handle any coverage options. We are not a licensed insurance agency.

What kinds of insurance do trucking and logistics businesses carry?

If you run trucks, broker loads, or fix and tow the ones that break, the question is rarely "do I need insurance." It is "which coverages, and which one answers when something goes wrong." A cargo claim, a trailer you don't own, a customer's vehicle in your shop, and an injured owner-operator are four different problems with four different policies.

The pages below explain what each coverage is for, what it generally does and doesn't cover, and what to have ready. Policies vary by insurer and by endorsement, so the declarations, definitions, and exclusions in your own policy are what count. These pages are general information, not insurance advice for your situation, and they are not a recommendation of any policy.

We do not sell, quote, or bind insurance, and we do not give advice about which coverage you should carry. Licensed insurance partners handle any coverage options, including which insurers they work with, pricing, and policy terms.

The coverages and bonds, in three groups

Trucking core

  • Primary auto liability

    Liability coverage for injury and damage you cause to other people with your trucks.

    Comes up for any for-hire carrier. Federal financial responsibility rules apply to many of them.

  • Motor truck cargo

    Coverage for freight you haul if it is lost or damaged in your care.

    Comes up for carriers whose brokers, shippers, or contracts ask for proof of cargo coverage.

  • Physical damage

    Coverage for damage to your own tractors, trucks, and trailers.

    Comes up for owned units, and for financed or leased units where the lender or lessor asks for it.

  • Bobtail and non-trucking liability

    Liability coverage for a tractor when it is not pulling a trailer or not under dispatch. The two are different coverages.

    Comes up for owner-operators who lease onto a carrier.

  • Occupational accident

    Injury benefits for an owner-operator or driver who is not covered by workers' compensation. Not the same as workers' compensation.

    Comes up for independent contractors and the carriers who work with them.

  • Trailer interchange

    Coverage for damage to a trailer you don't own while it is in your possession under a written interchange agreement.

    Comes up for operators who pull other companies' trailers or equipment.

  • Contingent auto liability

    Backup liability coverage for a business that hires carriers but doesn't run its own trucks.

    Comes up mainly for brokers and shippers.

  • On-hook towing

    Coverage for a customer's vehicle while you are towing it.

    Comes up for towing companies.

  • Garagekeepers liability

    Coverage for customers' vehicles while they are in your care at your shop or yard.

    Comes up for repair shops, tow yards, and storage lots.

Business and liability

  • General liability

    Coverage for bodily injury and property damage claims tied to your premises and operations, other than auto.

    Comes up for terminals, shops, and brokerages.

  • Commercial umbrella

    Extra liability limits that sit above your underlying policies. Availability over trucking auto liability varies.

    Comes up when a contract or a lender asks for higher limits.

  • Professional liability

    Coverage for claims that your professional services were mistaken or negligent, often called errors and omissions.

    Comes up for brokers and dispatchers.

  • Management liability

    Coverage for claims against the company's owners and managers, and for employment-related claims.

    Comes up as a business adds employees and partners.

  • Cyber

    Coverage for data breaches. Losses from online payment fraud may be covered separately or by a sublimit.

    Comes up for brokers and carriers that move money and data online.

  • Surety bonds

    Not insurance. A guarantee to a third party that you will meet an obligation.

    Comes up for brokers and some carriers, starting with the broker bond.

Property and people

  • Commercial property

    Coverage for the buildings and contents you own or rent, such as a terminal, shop, or yard.

    Comes up for anyone with a location.

  • Business owner's policy

    A bundle that combines commercial property, general liability, and often business income for smaller operations.

    Comes up for small shops and offices.

  • Inland marine

    Coverage for equipment and goods that move or are kept off your premises, such as tools and equipment floaters.

    Comes up for repair shops and towers. Motor truck cargo has its own page.

  • Builder's risk

    Coverage for a building while it is under construction.

    Comes up when you are building or renovating a terminal or shop.

  • Workers' compensation

    Benefits for employees hurt on the job, set largely by state law.

    Comes up for any business with employees.

Which coverages come up for my operation?

Start with how you operate. This is a map of the coverages operators in each situation usually get asked about, not advice about what to carry. Your contracts, your lender or lessor, your state, and your own risks decide the actual list, and your insurance agent can walk through them with you.

  • You have your own authority and run your own trucks. Primary auto liability is the starting point, because federal rules set minimum financial responsibility for many for-hire carriers. Brokers and shippers often ask about motor truck cargo. If a lender or lessor holds a unit, physical damage usually comes up too.
  • You are an owner-operator leased onto another carrier. The carrier you lease to typically carries the primary liability for loads you haul under its authority. Ask what the lease says about who carries what, then look at bobtail and non-trucking liability, physical damage, and occupational accident.
  • You are brand new to authority. Expect to need the same core coverages as established carriers. Start with primary auto liability and motor truck cargo, and have your authority details ready.
  • You run a small fleet. Add trailer interchange if you pull other companies' trailers, and ask whether your policies can be set up on a fleet basis. Workers' compensation applies once you have employees.
  • You run courier or box truck routes. Vehicle weight matters: the federal minimum financial responsibility rule applies to vehicles with a gross vehicle weight rating of 10,001 pounds or more, with exceptions. Cargo, physical damage, and liability still come up for lighter vehicles because customers and contracts ask for them.
  • You are a broker or dispatcher. Contingent auto liability is the coverage written for businesses that hire carriers. Professional liability, cyber, and the broker bond come up as well.
  • You tow or repair trucks. On-hook towing covers a customer's vehicle while it is on the hook. Garagekeepers liability covers vehicles in your care at your shop or yard. They are different coverages.

See who we serve for pages written for each kind of operation.

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Frequently asked questions

Are you an insurance agency?

No. BreadRoute is not a licensed insurance agency, agent, or broker, and not an insurance company. We explain coverages and send insurance requests to licensed insurance partners, who handle any coverage options.

What happens after I start an insurance request?

We send it to licensed partners. They contact you about your request and handle any coverage options, including which insurers they work with, pricing, policy terms, and service after any policy is in place. Any policy is issued by an insurer, not by BreadRoute.

Can I find out what a policy costs on this site?

No. We do not publish premiums, ranges, or averages, and our pages and tools do not show prices. What a policy costs depends on your operation and is set by your insurance agent and insurers. Each coverage page lists the factors that usually move cost.

Does starting a request mean I have coverage?

No. A request is a request. Coverage exists only when an insurer issues a policy, and nothing in submitting a request guarantees that coverage will be offered or available.

Do I need all of these?

Almost certainly not. Which ones apply depends on how you operate, who you haul for, and what your contracts and any lender or lessor require. Use the operation guide above as a map of what usually comes up, and ask your insurance agent to walk through your situation.

Where do bonds fit in?

Surety bonds are listed with the insurance coverages because they come up in the same conversations, but a bond is not insurance. It is a guarantee to a third party. Read the surety page for how it differs.

How does BreadRoute make money?

Our licensed insurance partners may pay BreadRoute a referral fee or commission when we pass along a request or when a policy is placed. You do not pay us to send one. That compensation may affect which partners we recommend. Premiums and any policy fees are set by insurers and the licensed agents you work with and are separate. See our disclosures.

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