Transportation & Logistics Insurance Packages

Moving freight is not one risk. A carrier's largest exposure is a serious collision. A broker's is a load it arranged but never touched. A courier's is a high volume of small claims from parcels and urban driving. Many firms play more than one role, such as a carrier with a brokerage desk, and the program has to cover each one.

Storage is a separate exposure. If you hold freight in a warehouse or cross-dock between moves, tell us, because goods at rest are insured differently from goods in transit.

Most transportation programs are built from the same set of policies. What changes from one operation to the next is the limit, the deductible and the wording on each.

Trailer interchange, non-owned trailer and loss of use coverages fill the gaps when you pull equipment you don't own. Our guide to fleet policies versus individual commercial auto explains when it pays to move to a fleet program.

In Ontario, every motor vehicle liability policy must carry at least $200,000 of third-party liability for any one accident, under section 251 of the Insurance Act. That is the floor for any vehicle, from a cargo van to a tractor-trailer. Other provinces set their own minimums, and provincial carrier safety rules can set their own insurance conditions.

Two other thresholds matter more for trucking. First, Ontario's Dangerous Goods Transportation Act requires anyone transporting dangerous goods who needs an approved emergency response assistance plan under the federal rules to carry at least $2,000,000 of motor vehicle liability insurance for each means of transport. Second, U.S. federal rules set a minimum of $750,000 for for-hire carriers of general freight in interstate commerce, rising to $1,000,000 or $5,000,000 for oil and hazardous materials.

The statutory minimum is rarely the right limit. A serious highway collision involving a heavy truck can produce injury claims far above $200,000, and many shipper, broker and customer contracts require auto liability limits well above the statutory minimum before they will tender freight. Many carriers place a primary auto policy and add an umbrella on top, which can be cheaper per dollar of limit than raising the primary.

In Ontario, Regulation 643/05 under the Highway Traffic Act deems a set of uniform conditions of carriage to form part of every contract for the carriage of goods for compensation. They decide what a carrier owes when freight is lost or damaged, and they shape how cargo coverage should be written.

Two problems come up repeatedly in cargo claims. The first is a bill of lading that is incomplete or missing the required statements, which can weaken the carrier's right to the limit. The second is a cargo policy whose exclusions don't fit the freight: unattended vehicle conditions, theft warranties, reefer breakdown, or commodities the policy excludes. Read your cargo form against what you actually haul. Our post on cargo coverage in peak shipping season covers the busiest quarter.

In Ontario, a Commercial Vehicle Operator's Registration (CVOR) certificate is required for trucks plated in Ontario, the United States or Mexico with a registered gross weight or actual weight over 4,500 kg, as well as buses with 10 or more seats and tow trucks. Trucks plated in another province or territory need a safety certificate from their home jurisdiction instead.

The CVOR record tracks collisions, convictions and roadside inspections against fleet size and kilometres travelled, and the Ministry of Transportation assigns a public safety rating: Satisfactory, Satisfactory-Unaudited, Conditional or Unsatisfactory. An Unsatisfactory rating means operating privileges are suspended or cancelled. The ministry also expects each vehicle to be insured under a commercial auto liability policy with appropriate minimum coverages.

Underwriters read the CVOR abstract early because it is standardized and predictive. A rising violation rate or a run of out-of-service defects points to future claims. Our post on trucking insurance and your CVOR explains how carriers manage the file deliberately.

Canadian carriers that haul into the United States must meet U.S. federal financial responsibility rules, not just Canadian ones. Before interstate for-hire work begins, a carrier needs a USDOT number and operating authority from the Federal Motor Carrier Safety Administration (FMCSA), a designation of process agents in each state, usually through Form BOC-3, and proof of insurance filed by the insurer, not the carrier.

Under 49 CFR Part 387, the minimum for general freight is $750,000, and proof usually takes the form of an MCS-90 endorsement on the auto policy. Carriers domiciled in Canada must carry a legible English copy of that proof in each vehicle, and a vehicle without it can be denied entry.

Not every Canadian insurer files in the U.S., and appetite depends on lanes, commodities and the U.S. safety record. Our cross-border insurance service coordinates the filings and matches the policy to the authority you hold.

A freight broker never touches the load, yet it can still be sued when a load goes wrong. When a carrier's cargo policy excludes the loss, has lapsed or carries a limit below the freight value, the shipper often turns to the broker that arranged the move. When a contracted truck causes a serious collision, injured parties may name the broker for negligent carrier selection.

Carrier vetting is the broker's best defence and the first thing underwriters ask about. Check each carrier's operating authority, safety rating and current certificate of insurance before tendering a load. Our page on the certificate of insurance explains what to check.

An owner-operator leased to a carrier usually runs under the carrier's auto liability while dispatched, but needs their own physical damage on the truck and non-trucking liability for driving off dispatch. The lease agreement decides who insures what, and gaps appear when the lease is vague about trailers, cargo deductibles or time between loads. Read it with your broker before you sign. Owner-operators who haul under their own authority need the full carrier program.

Courier and last-mile operations have a different profile: smaller vehicles, many stops, dense urban driving and a high volume of parcel claims. Vans and straight trucks at or under 4,500 kg registered gross weight don't need a CVOR in Ontario, but they still need commercial auto, not a personal policy. Where drivers use their own cars, the business needs non-owned auto liability, and each driver needs a personal policy that permits commercial delivery use.

Theft is one of the fastest-moving exposures in Canadian trucking. Équité Association recorded about 1,601 thefts of tractors, trailers and cargo in Ontario in 2025, against roughly 240 in Alberta. Nationally, trailer thefts rose to about 970 in 2025 from about 570 in 2024, and the cargo recovery rate fell from 13% to 9%, as reported by Truck News.

Cargo policies respond to theft, but most carry conditions that decide whether a theft claim is paid: attended vehicle requirements, locked and secured yards, alarm or tracking warranties and exclusions for high-theft commodities left unattended. Breach a condition and the claim can be denied. Practical controls include king-pin and glad-hand locks, GPS tracking on trailers, secure overnight parking plans and checks on the identity of anyone picking up a load.

Truck and fleet premiums are rated per unit, then adjusted for the operation. Underwriters look at the same handful of factors on every submission, and the ones you control are the ones worth documenting. Our post on why commercial auto costs what it costs goes deeper on pricing.

Deductibles and limits move the price too. A higher physical damage deductible lowers premium but has to be affordable after a total loss. A strong submission with current abstracts, a clean CVOR and documented safety practices reaches more of the market. See our risk management services for help building that file.