Contingent cargo insurance

Contingent cargo is insurance that responds when a motor carrier's cargo coverage fails to make a shipper whole for cargo loss or damage on a load arranged by the broker.

Standard policy limits run $100,000 to $500,000 for small brokers, higher for brokers regularly running high-value or refrigerated loads. Premium is generally lower than contingent auto liability because the per-claim exposure is bounded by load value rather than verdict potential.

Often bundled with contingent auto liability from the same wholesale broker. Reefer-breakdown endorsement is a critical add-on for refrigerated freight brokers; standard cargo policies often exclude breakdown losses.

Why this matters for freight brokers

Cargo claims happen more frequently than bodily-injury claims. Contingent cargo is the routine working-coverage line for brokers managing high-frequency claim activity.

Related terms

• Contingent auto liability insurance — Contingent auto liability is third-party bodily injury and property damage coverage that responds when a motor carrier's primary auto policy fails to pay a claim arising from a load arranged by the broker.
• Reefer breakdown — Reefer breakdown is a failure of a refrigerated trailer's temperature-control system causing cargo loss or contamination; cargo insurance often excludes breakdown losses without a specific endorsement.