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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 September 8, 2026 · 3 min read · by Gerino Alejos

Motor truck cargo insurance pays for damage to or loss of the freight you haul, up to the policy limit. For produce, the part that matters most is the reefer breakdown endorsement. A standard cargo policy does not pay when the cooling unit fails. Produce moves through South Texas year round, and cargo claims on cold loads follow a pattern. Most denials trace back to two or three lines in the policy that nobody read until the load was turned away.

What motor truck cargo covers

Damage to or loss of the freight you haul, up to the policy limit, while it is in your care, custody and control. That means from pickup until you hand it over. It is separate from liability, which covers harm to others. It is also separate from physical damage, which covers your truck. See coverage for a trailer you do not own.

The reefer breakdown exclusion

Standard cargo policies exclude loss caused by a cooling failure unless you buy the reefer breakdown endorsement, an add on to the policy. Say you haul cold freight without it. A compressor fails and spoils 40,000 dollars of produce. That is your loss, not the insurer's.

The endorsement usually comes with conditions. Documented maintenance on the unit. A temperature recorder that runs the whole trip. A set point, the temperature the load must be kept at, written on the bill of lading. Miss those and the endorsement can still fail you.

Other exclusions worth reading

• Improper packing or loading by you
• Failing to keep the required temperature, which is different from a breakdown
• Theft from a truck left alone, which many policies limit to watched or locked locations
• A late 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

• Cool the trailer to the set point before loading 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 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 often require 100,000 dollars, and more for certain loads. The deductible is the part of a loss you pay yourself. Cargo deductibles run higher than auto deductibles, often 1,000 to 5,000 dollars. See how deductibles work on a work truck.

We know these accounts

Bring a recent rate confirmation and a bill of lading. We will match the coverage to what you actually haul. Starting out? See the insurance checklist for a new trucking business. Use the commercial quote form on this page, or call our McAllen office at (956) 687 3334. Se habla español.

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Gerino Alejos

Licensed insurance agent · License 3128710 · NPN 18243381

Owner of McAllen Insurance Group, an independent agency on North 10th Street in McAllen. Works with clients across Hidalgo, Cameron and Starr counties on Medicare, Marketplace health, life and auto coverage. Se habla español.