Backing the Freight When the Carrier's Policy Won't.
Protection when a hired carrier's cargo coverage falls through
Contingent cargo insurance protects freight brokers and logistics providers against claims for lost or damaged freight when the motor carrier they hired has cargo coverage that fails to respond. It is "contingent" because it sits behind the carrier's own cargo policy and pays only when that policy denies the claim, excludes the loss, has lapsed, is insufficient, or the carrier is insolvent. Shippers expect their freight to be made whole, and when the trucker's insurer walks away, the broker is often the party left holding the claim — which is exactly the exposure this coverage was built for.
Cargo denials are far more common than most brokers expect, which is what makes this a foundational coverage rather than an optional one.
What Contingent Cargo Covers
Contingent cargo typically responds to:
Drop-Down Cargo Coverage — Loss or damage to freight on a hired carrier when that carrier's primary cargo policy denies, excludes, lapses, or is insufficient.
Common Carrier Denial Scenarios — Losses the carrier's insurer refuses — reefer breakdown without proper maintenance, unattended-vehicle theft, failure to meet policy warranties, or late notice.
Broker's Exposure to the Shipper — Claims passed up the chain when the broker is held responsible to the shipper for freight the carrier damaged or lost.
Defense & Claim Costs — Expenses to investigate and defend a covered cargo claim.
What It Does Not Cover
Contingent cargo commonly excludes:
Freight on vehicles the insured owns or operates directly (covered under motor truck cargo)
Claims the hired carrier's cargo policy pays in full
Auto liability for the accident itself (covered under contingent auto)
Certain high-theft or high-value commodities unless specifically scheduled
Shortage, inherent vice, or improper packaging by others, per policy terms
Coverage depends on commodity types, limits, and the triggering failure defined in the policy.
Who Needs Contingent Cargo?
This coverage is important for:
Freight brokers and transportation brokers
Third-party logistics providers (3PLs) and freight forwarders
Shippers that arrange their own motor carriers
Logistics platforms matching loads to carriers
If you arrange freight on carriers you don't own, a cargo denial becomes your problem.
How Coverage Is Structured
Contingent cargo is usually written with:
A per-load limit sized to the commodities and values you move
Coverage triggered by the hired carrier's cargo policy failing to respond
Scheduling or sublimits for high-value or high-theft commodities (electronics, pharmaceuticals, metals)
Coordination with contingent auto and truck broker liability in one program
Conditions around carrier vetting, documentation, and bills of lading
Underwriting looks at your commodity mix, lanes, and carrier-qualification process.
Real-World Claim Examples
A reefer unit fails in transit and the carrier's insurer denies the spoiled-load claim for a maintenance exclusion
A loaded trailer is stolen while left unattended, triggering a theft exclusion on the carrier's policy
The hired carrier's cargo coverage had lapsed before the shipment moved
A carrier becomes insolvent and its insurer is unresponsive to a damage claim
In each case, the shipper still looks to the broker — and contingent cargo can respond.
Why Proper Placement Matters
Contingent cargo coverage varies widely based on:
Commodity schedules, sublimits, and excluded goods
How the drop-down trigger and "failure to respond" are defined
Theft, reefer-breakdown, and unattended-vehicle provisions
Coordination with the rest of the transportation program
A mismatched policy can exclude the exact commodity or loss type that generates the claim.
Our Approach
At Cory Washington & Co., we structure contingent cargo around the freight you actually move and pair it with contingent auto liability and truck broker liability so the whole brokered-transportation exposure is covered as one program. For the full operation, see our freight broker insurance page.
When the carrier's cargo policy says no, your shipper still says it's yours.
All insurance descriptions on this website are provided by Cory Washington & Co. LLC strictly for general informational purposes. They are not intended to be, and should not be relied upon as, legal, financial, or insurance advice. The information presented is general in nature and does not guarantee the availability, terms, conditions, or scope of any insurance coverage. Actual coverage is determined solely by the specific policy language issued by the insurer and remains subject to underwriting approval. Nothing on this website creates or implies an agent-client relationship, binds coverage, or alters any existing policy. Cory Washington & Co. LLC expressly disclaims any liability for actions taken, or not taken, based on the content provided here. For advice regarding your particular situation, please consult directly with a licensed insurance professional at Cory Washington & Co. LLC or another qualified insurance professional, and always review your policy documents in full.
See what to confirm in a contingent cargo policy — what's standard, what's often limited, and what to add if needed — plus the gap most often missed, in the Contingent Cargo Policy Feature Checklist.
Complete the Contingent Cargo Supplemental online in a few guided steps, download the fillable PDF, or browse all applications.
Frequently Asked Questions
How do I get contingent cargo insurance through Cory Washington & Co.?
Request a quote or contact our team. We start with a short conversation about your operations, analyze your exposures, then negotiate contingent cargo insurance across multiple carriers that compete for your account and present options with the trade-offs explained. Cory Washington & Co. LLC is licensed in all 50 states.
How much does contingent cargo insurance cost?
Premiums vary from business to business. The main drivers of contingent cargo insurance pricing are the nature of your operations, your revenue and payroll, your loss history, and the limits you carry. Rather than quote a flat figure, we negotiate across several markets and walk you through the options, so you only pay for the protection you actually need.
Who needs contingent cargo insurance?
It depends on your situation. Some coverage is required by law; more often, contingent cargo insurance is required by a contract, lease, lender, or client before they will do business with you — and even when it is not mandated, it guards against exposures that can be severe. We review your operations and obligations and tell you plainly what you need and why.
What if another agency has already declined or non-renewed my coverage?
Difficult, specialty, and previously-declined placements are a core part of our work. We access excess & surplus (E&S) and specialty markets that many generalist agencies cannot, and we explain the trade-offs clearly so you can decide with confidence.
Available in all 50 states. See how requirements differ in California, Texas, Florida, New York, or choose your state.