Motor Truck Cargo (MTC).

What it is

Motor truck cargo (MTC) is coverage on the freight while it is in the carrier's possession. It pays for damage to or loss of cargo during transit, loading, or unloading. Standard limits: $100,000 for general freight, $250,000+ for higher-value commodities, and $1M+ for high-value cargo (electronics, pharmaceuticals, certain metals). Most broker contracts require $100,000 minimum coverage as a condition of dispatch, and shipper contracts can demand higher limits based on the specific load. The certificate holder on a load-specific COI is usually the broker, not the shipper.

Major exclusions matter as much as the limit. Standard MTC excludes refrigeration breakdown for produce and perishable loads (requires a separate reefer breakdown endorsement), employee theft, contraband, water damage to non-waterproof loads, and intentional acts. Some MTC policies include limited terrorism and hijacking coverage; others require named endorsements. Read the exclusion list before binding — the gap between what the policy says it covers and what the dispatch actually carries is where uninsured losses live, and the carrier eats those losses.

Why it matters for trucking finance

MTC is non-negotiable for booking most loads — without proof of coverage, brokers won't dispatch. Lenders sometimes require MTC disclosure as part of underwriting, since cargo-related liability is a tail risk for default.

MTC claims affect future rates similarly to primary liability — frequent claims push rates up at renewal and can disqualify the carrier from certain markets. For reefer operations, the gap between MTC and reefer breakdown is critical to understand; the two have different mechanisms and different coverage triggers, and operators routinely discover the gap only after a denied claim.

Related terms

• Primary Liability — Commercial auto insurance covering bodily injury and property damage to others when at fault; FMCSA mandates $750K–$5M minimum based on cargo.
• Reefer Breakdown — Insurance endorsement covering cargo loss from refrigeration unit failure; standard motor truck cargo policies exclude this.
• Physical Damage — Coverage on the carrier's own truck and trailer against collision, theft, fire, vandalism, and other damage; typically required by equipment lenders.

Related Dispatched products

• Commercial trucking insurance