Common Endorsements in Trucking and Logistics Insurance and When to Add Them

The right endorsements tailor a trucking or logistics insurance program to real-world operations. This guide explains the common endorsements used by U.S. trucking fleets and logistics firms, where coverage gaps appear, and when adding an endorsement makes financial and operational sense — without overpaying.

Table of contents

Cargo endorsements (Motor Truck Cargo, Contingent Cargo)
Liability endorsements (Named/Additional Insured, Waiver of Subrogation, MCS-90)
Vehicle & equipment endorsements (Trailer Interchange, Non-Owned/Hired Auto)
Operational endorsements (Bobtail/Driving Other Car, Loss of Use, Broad Form)
How to decide: when to add, pricing guidance, and regional notes
Quick comparison table
Action checklist for brokers & fleet managers

Sources and useful regulatory context

FMCSA insurance/financial responsibility basics: https://www.fmcsa.dot.gov/registration/insurance
Commercial truck insurance overview from Progressive Commercial: https://www.progressivecommercial.com/commercial-auto/
Industry primer from the Insurance Information Institute on commercial auto & cargo: https://www.iii.org/article/what-business-owners-need-to-know-about-commercial-auto-insurance

Table of Contents

Why endorsements matter for trucking and logistics

Standard commercial auto and general liability forms were not written for the complexity of modern trucking and logistics. Endorsements:

Plug specific operational gaps (e.g., cargo stolen at a warehouse; damage to a trailer on interchange)
Allocate risk between parties (shippers, brokers, carriers, third‑party logistics providers)
Satisfy contract and regulatory requirements (e.g., broker/shipper demands, FMCSA certificates)

Without the right endorsements, carriers may face denied claims, exposure to litigation, or contractual breaches.

Common endorsements, what they cover, and when to add them

1. Motor Truck Cargo / On-Hook Cargo

What it covers: Loss of or damage to cargo being transported (varying perils), including goods on the truck and sometimes on hook/loaders.
When to add:
- You’re a for-hire carrier or broker moving customer freight (required by many shippers).
- You haul high-value or easily pilfered freight (electronics, pharmaceuticals).
Typical cost/impact: For owner-operators carrying general freight, cargo coverage often costs $800–$4,000+ per year depending on declared value and deductible. Larger fleets with high-value freight can pay tens of thousands annually.
Notes: Brokers and shippers often require limits of $100,000–$1,000,000+ depending on commodity.

2. Hired and Non-Owned Auto (HNOA)

What it covers: Liability when employees drive hired or non-owned vehicles for company business.
When to add:
- You subcontract frequently, rent trucks, or employees use personal vehicles for company duties.
Typical cost: Small fleets may pay $500–$3,000/year; depends on payroll, vehicle exposure.
Practical impact: Essential for logistics providers that don’t own all vehicles used.

3. Trailer Interchange / Non-Owned Trailer Coverage

What it covers: Physical damage to trailers you do not own but operate under interchange agreements.
When to add:
- You frequently interchange trailers at ports (Los Angeles/Long Beach), rail ramps, or with other carriers.
Typical cost: Usually a modest premium relative to physical damage—$300–$2,000/year per trailer exposure, varies with limits/deductible.
Location note: Fleets operating in Southern California and Texas ports have higher trailer interchange exposures.

4. Bobtail / Driving Other Car (Non-Trucking Liability)

What it covers: Liability when the truck is used off‑hook (not under dispatch), i.e., personal use or between jobs.
When to add:
- Owner-operators who use the tractor for personal errands or drive off-duty without the company being hired.
Typical cost: Often $200–$1,200/year; required by owner-operator lease agreements in many cases.

5. Broad Form Named Insured & Additional Named Insured

What it covers: Extends policy protections to additional entities (subsidiaries, controllers) or broadens who is considered an insured.
When to add:
- Your company structure includes subsidiaries, or you need to cover leased drivers or contractors.
- Shippers request “Additional Insured” status on your policy.
Pricing: Often administrative or modest premium change, but wording matters more than cost.

6. Waiver of Subrogation

What it covers: Prevents insurer from pursuing third parties after a paid claim.
When to add:
- Required contractually by shippers, warehousing, or 3PL agreements to avoid third-party litigation.
Cost/impact: Minimal direct premium increase; can significantly affect recoveries and loss history.

7. MCS-90 Endorsement

What it covers: FMCSA-mandated endorsement that ensures public compensation from the insurer for certain claimants when a carrier lacks sufficient liability insurance.
When to add:
- Required for interstate motor carriers operating under federal regulations.
Regulatory note: This is required under federal trucking law — see FMCSA guidance: https://www.fmcsa.dot.gov/registration/insurance.

8. Contingent Cargo / Contingent Liability Endorsements

What it covers: Contingent coverage when primary cargo or liability coverage of a subcontractor fails.
When to add:
- You broker freight or retain 3PLs and need protection if a subcontractor’s policy lapses or denies.
Pricing: Reasonable but depends on the scope and limits requested by counterparties.

9. Loss of Use / Downtime

What it covers: Compensation for lost income when a vehicle or trailer is out of service following a covered physical damage loss.
When to add:
- High utilization fleets where a single asset outage causes measurable revenue loss.
Typical cost/benefit: Small premium relative to replacement cost; can save thousands per day in lost revenue for specialized hauling.

Pricing examples from carriers and regional context

Insurance pricing varies widely by exposure, claims history, location, and cargo class. Sample reported ranges (industry averages; seek carrier quotes for your operation):

Progressive Commercial: Progressive publishes commercial auto guidance and often appears competitive for owner‑operators; owner-operator tractor-trailer premiums commonly start around $8,000–$15,000/year for compliant drivers and rise with risk factors. See Progressive Commercial for program details: https://www.progressivecommercial.com/commercial-auto/
GEICO Commercial: GEICO provides commercial truck offerings in many states and may be competitive on hired/non-owned and smaller fleet liability; small fleet tractor-trailer programs can start $6,000–$12,000 but vary by state and cargo: https://www.geico.com/business-insurance/commercial-auto/truck/
Market note by region:
- Los Angeles / Long Beach (CA): Higher cargo theft and port exposure → cargo and trailer interchange premiums can be 15–40% above national average.
- Houston / Dallas (TX): Strong freight volumes; premiums influenced by hazmat exposure and total miles.
- Miami / Southeast FL: Increased auto claims frequency can increase liability exposures.

References for regulatory minimums and commercial insurance context:

FMCSA — insurance/financial responsibility (federal minimums and compliance): https://www.fmcsa.dot.gov/registration/insurance
Insurance Information Institute — commercial auto basics: https://www.iii.org/article/what-business-owners-need-to-know-about-commercial-auto-insurance

Quick comparison table: endorsements at a glance

Endorsement	Primary coverage	When to add	Typical annual impact (range)
Motor Truck Cargo	Loss/damage to customer freight	For-hire carriers, high-value freight	$800 – $50,000+ (depends on limits/value)
Hired & Non-Owned Auto	Liability for hired/non-owned vehicles	Uses rentals/subcontractors	$500 – $3,000
Trailer Interchange	Damage to non-owned trailers	Frequent interchange at ports/rail	$300 – $2,000 per exposure
Bobtail / Non-Trucking	Liability when off-dispatch	Owner-operators using truck off-duty	$200 – $1,200
Waiver of Subrogation	Stops insurer recovery from third parties	Contract requirement by shippers	Low premium change
Broad Form Named Insured / Additional Insured	Adds insured parties	Complex corporate/leased-driver setups	Administrative/minor
MCS-90	FMCSA mandated security endorsement	Interstate regulated carriers	Required; no separate “market” cost
Loss of Use	Income while vehicle out of service	High utilization fleets	Varies; often cost-effective
Contingent Cargo	Backup cargo coverage	Brokers/3PLs with subcontractors	Moderate, depends on exposure

How to decide: structure coverage to plug gaps without overpaying

Checklist to evaluate endorsements:

Identify contractual obligations: Which endorsements does the shipper/broker require? (Additional Insured? Waiver of Subrogation?)
Map exposures to policy sections: Cargo vs. auto physical damage vs. liability vs. inland marine — where is the gap?
Quantify frequency and severity: Use historical loss runs to determine whether the exposure is frequent (higher deductible? retention?) or catastrophic (higher limits).
Price vs. protection: For low-frequency/high-severity exposures (e.g., hazmat or high-value cargo), purchase higher limits. For high-frequency/low-severity, consider higher deductibles or risk control measures.
Regional considerations: Port-dense operations (LA/LB, Houston, Savannah) should weigh trailer interchange and cargo endorsements more heavily.
Ask carriers for endorsements as options on quotes — many endorsements are inexpensive relative to claim cost, but wording differences matter.

Practical next steps for brokers and fleet managers

Run a short exposure workshop: list contracts, cargo types, trailer interchange activity, rented equipment use, and subcontracting practices.
Request endorsements by exact wording — not just “cargo coverage” — and get sample policy language.
Compare quotes from national carriers (Progressive, GEICO Commercial, Berkshire Hathaway/GEICO-affiliate markets) and specialty truck markets; ask for endorsement price breaks for risk control measures.
Audit policies annually; see our Audit Guide: Reviewing Policy Wordings to Plug Gaps Without Overpaying for Trucking Insurance.

Choosing the right endorsements is a mix of legal compliance, contract management, and cost-effective risk allocation. Prioritize endorsements that directly address contractual requirements and exposures that could produce catastrophic losses — and use retention, deductibles, and targeted endorsements to avoid paying for unnecessary breadth.