CargoLabs Secures $100,000 Grant to Revolutionize Freight Insurance with 24/7 Access

Charlottesville Startup Awarded Commonwealth Commercialization Fund Grant

The Virginia Innovation Partnership Corporation (VIPC) announced today that Charlottesville-based startup CargoLabs Inc. has been awarded a $100,000 grant from the Commonwealth Commercialization Fund (CCF). CargoLabs is developing an innovative, web-based platform that connects truckers with insurance agents, enabling fast, secure, and affordable freight insurance transactions around the clock.

Streamlining Insurance for Freight Carriers

CargoLabs is addressing a significant pain point in the trucking industry: the difficulty and expense of obtaining necessary insurance coverage, particularly for valuable freight. Traditionally, securing this coverage involves a complex, labor-intensive process, resulting in high premiums that often exclude small trucking companies. CargoLabs’ platform offers a solution by providing instant, per-trip or per-day insurance options, removing the need for human intervention and allowing truckers to secure coverage anytime.

"High minimum premiums for shipping-compliant insurance coverage exclude 90% of trucking fleets from hauling expensive cargo, restricting their access to higher-paying loads,” explained Jake Spradling, CargoLabs’ Co-founder, CEO, and CTO. “Our platform's ability to offer coverage on a shipment-by-shipment basis significantly reduces costs for freight customers and opens up more lucrative business opportunities.”

Addressing Labor Constraints in Insurance Agencies

Co-founder and COO Harvey Snook highlighted the operational challenges faced by traditional insurance agencies. “Freight trucking logistics and their associated insurance needs have always been at odds with the limited operating hours of insurance agencies,” Snook stated. “Our solution eliminates these constraints, providing 24/7 compliance solutions and support.”

The grant from VIPC will be used to enhance CargoLabs’ platform architecture to handle enterprise scale and to manage nearly $2 million in processed premiums. By doing so, CargoLabs aims to support both small and large trucking companies, enabling them to access higher-value freight opportunities that were previously out of reach.

Support from VIPC and Future Prospects

Joe Benevento, VIPC President and CEO, expressed optimism about CargoLabs’ potential impact on Virginia's economy. “Commercial trucks are a vital part of our state’s economy, with thousands crossing our roadways each year. CargoLabs is offering a unique opportunity to improve the insurance process, ultimately increasing large-truck traffic in the Commonwealth.”

Jeanette Townsend, VIPC’s Director of Private Sector Grants, echoed this sentiment, praising CargoLabs for its innovative approach and early market traction. “With Harvey’s freight insurance expertise and Jake’s technical skills, CargoLabs is well-positioned to fill a significant gap in the market. VIPC is excited to support their growth and success.”

About CargoLabs

CargoLabs is revolutionizing the trucking insurance landscape with a platform designed to streamline compliance and reduce costs for trucking companies. By automating the insurance process, CargoLabs allows truckers to access higher-paying freight opportunities that were previously out of reach due to restrictive and costly insurance requirements.

About Virginia Innovation Partnership Corporation (VIPC)

VIPC serves as the nonprofit corporation for the Virginia Innovation Partnership Authority, driving innovation and economic development across the Commonwealth. Through programs like the Commonwealth Commercialization Fund, VIPC supports startups and university research partners at the earliest stages of technology commercialization.

About the Commonwealth Commercialization Fund (CCF)

The CCF offers grants to university researchers and early-stage startups to support the commercialization of innovative technologies. These grants help bridge the gap between research and market readiness, funding critical stages such as prototype development and market validation.