Growing Complexity in Trucking Risks Highlights Need for Distinct Coverage Across Units and Cargo

Toronto, ON (June 10, 2026) – As freight movement continues to play a critical role in Canada’s economy, brokers are seeing increased attention on the evolving risk profile within the trucking and transportation sector.

From long-haul fleets to regional operators, trucking exposures have become more layered in recent years, driven by higher cargo values, tighter delivery timelines, and increased operational pressures. Industry observers note that these shifts are reinforcing the importance of understanding how different types of risks often assumed to be covered under a single policy are actually separated within insurance structures.

Mobile Equipment (All Risks Physical Damage) coverage applies to the trucks and trailers themselves protecting against loss or damage to owned or operated units.

Separately, Motor Truck Cargo (MTC) coverage addresses liability for goods in transit, including damage, loss, or theft of cargo while under the carrier’s responsibility.

“While these exposures are closely linked operationally, they are fundamentally different from an underwriting and claims standpoint,” noted Andre L. Prasad, Underwriting Manager, Transportation. “Clarity around this distinction is becoming more important as cargo values increase and supply chains become more interconnected.”

The need for clear separation between unit and cargo coverage is further amplified by factors such as cross-border transportation, increased theft activity in certain regions, and more complex contractual obligations between carriers, shippers, and third parties.

Brokers are also noting that gaps can arise when coverage limits, policy wording, or insured parties are not aligned with the actual nature of the operation. For example, cargo handled by subcontractors or exposures tied to specialized goods including temperature-sensitive or high-value shipments can introduce additional considerations that extend beyond standard policy frameworks.

As a result, underwriting discussions are increasingly focusing on:

• The nature and value of goods being transported
• Ownership and responsibility at different stages of transit
• Equipment usage patterns and fleet composition
• Contractual liabilities and third-party involvement

This evolving landscape is driving demand for more tailored insurance structures that reflect both the mobility of physical assets and the financial exposure tied to cargo movement.

CHES Special Risks Inc. continues to work with brokers to navigate these complexities, supporting a clearer understanding of how trucking risks are structured and where specialized coverage may be required.

As freight demand remains strong across Canada, industry professionals expect trucking risks to remain a key area of focus particularly as supply chains grow more dynamic and interconnected.

For more information on how CHES Special Risk can support you, contact CHES Special Risk.

About CHES Special Risk

CHES Special Risks Inc. was established as a Managing General Agent and Wholesale broker in 2004, in response to broker demand to a hardening market place, commencing with a particular speciality in the entertainment and hospitality business, later becoming a fully accredited Lloyd’s coverholder in 2009. CHES Special Risk and Sister Companies are a fully Independent MGA delivering “A” rated capacity both in the hard to place, and standard lines classes and support their retail brokers in growing and developing their businesses. For more information, visit www.chesspecialrisk.ca.

Source: CHES Special Risks Inc.

Tags: CHES Special Risk, Trucking