Does fleet insurance cover cargo?

Complete Guide to Fleet Insurance and Cargo Coverage

Why This Question Matters for Colorado and Utah Residents

Understanding whether fleet insurance includes cargo is crucial for businesses operating in Colorado and Utah, where local risks and regulations uniquely impact your coverage needs.

• Regional Risk Factors: Colorado and Utah face high rates of hail, theft, and severe weather, putting both vehicles and cargo at significant risk—hail alone accounts for 48% of fleet claims in Northern Colorado.
• Regulatory Compliance: State law sets strict minimums for fleet liability insurance but does not require, or automatically include, cargo protection.
• Financial Stakes: Without cargo coverage, a single incident (like theft or an accident on I-25 or I-15) could cost your business tens of thousands in uninsured losses and lost revenue.

What Most People Get Wrong

A common misconception is that fleet policies automatically cover anything in the vehicle—including equipment, tools, or valuable cargo. In reality, standard fleet coverage is limited to the vehicles themselves and associated liability—not the goods being transported.

Another mistake is assuming that if your route is “short and local,” the risk is minimal. Data shows that most theft and weather losses occur during brief stops or even while parked at job sites and loading docks in cities like Fort Collins or Salt Lake City.

The Complete Picture

Fleet insurance is designed to protect your business vehicles from damage, theft, liability, and sometimes business interruption—but it typically excludes coverage for cargo. Cargo coverage is offered as a separate policy (or an endorsement) called motor truck cargo or inland marine insurance.

This means if your fleet is transporting electronics, landscaping equipment, or client goods and something happens—whether it’s hail, theft, fire, or collision—your standard fleet policy won’t pay for the loss of cargo. For example, Colorado’s average claim for stolen or damaged cargo ranges from $8,000-$60,000, often higher than the cost to repair the vehicle itself.

To properly protect your business, you need to work with a local, independent expert who can identify the true risks and gaps in your coverage. At FoCoIns, we help you combine the right policies so both vehicles and cargo are fully protected—because in Colorado and Utah, it’s not a matter of if the risk arises, but when.

Making the Right Decision for Colorado and Utah Residents

Question 1: What is the real value of your cargo—and can you afford to lose it?

Take stock of the highest-value items you transport in a single trip. In Colorado and Utah, logistics companies often move electronics, agricultural equipment, or industrial goods averaging $15,000-$80,000 per load.

• Would a single uncovered incident put your operations or cash flow at risk?
• Does your business rely on fast delivery and client trust for reputation?

Question 2: How exposed is your business to local risks en route?

Consider whether your routes pass through high-risk areas for hail (Fort Collins, Weld County), frequent theft (Salt Lake City industrial parks), or difficult mountain roads where accidents are more likely.

• Have you factored in seasonal risks—like June-August hail surges, or winter collision spikes in the Rockies?
• Is your cargo ever left unattended during deliveries, increasing theft exposure?

Question 3: Are you reviewing and updating your coverage as your business changes?

Has your cargo value increased with new contracts? Did you expand your fleet or add new delivery routes? Growing Colorado and Utah businesses need to update fleet and cargo policies regularly to avoid coverage gaps that can threaten business survival.