Blog / Commercial Auto

Motor truck cargo insurance for produce haulers

Reefer breakdown, rejected loads and the exclusions that decide whether a spoiled trailer of produce gets paid.

Updated August 17, 2026 · 2 min read

Produce moves through South Texas year round, and cargo claims on refrigerated loads follow a pattern. Most denials trace back to two or three lines in the policy that nobody read until the load was rejected at the receiver.

What motor truck cargo covers

Damage to or loss of the freight you are hauling, up to the policy limit, while it is in your care, custody and control. It is separate from liability, which covers harm to others, and from physical damage, which covers your truck.

The reefer breakdown exclusion

Standard cargo policies exclude loss caused by refrigeration failure unless you buy the reefer breakdown endorsement. If you haul temperature sensitive freight without it, a compressor failure that spoils 40,000 dollars of produce is your loss, not the insurer's.

The endorsement usually comes with conditions: documented maintenance on the unit, a continuously operating temperature recorder, and a set point recorded on the bill of lading. Miss those and the endorsement can still fail you.

Other exclusions worth reading

• Improper packing or loading by you
• Failure to maintain the required temperature, as distinct from mechanical breakdown
• Unattended vehicle theft, which many policies restrict to attended or secured locations
• Delay in delivery, which is almost always excluded even when it causes the loss
• Commodities not listed on the policy

How to protect a claim before it happens

• Pre-cool the trailer and record it
• Photograph the load, the seal and the temperature display at pickup
• Get the set point in writing on the bill of lading, not by phone
• Keep the download from the temperature recorder for every load
• Note any pre-existing pallet damage on the bill of lading at pickup, in the driver's handwriting
• Service the reefer on schedule and keep the receipts

Limits and deductibles

Set the limit to the highest value load you actually haul, not the average. Receivers and brokers frequently require 100,000 dollars, and higher for certain commodities. Cargo deductibles run higher than auto deductibles, often 1,000 to 5,000 dollars.

We know these accounts

Bring a recent rate confirmation and a bill of lading and we will match the coverage to what you actually haul. Call (956) 687-3334. Se habla español.