Why do we need to get freight shipping insured? Does the carrier liability cover shipments? Do you know about carrier liability? We get asked these and many other queries regarding carrier liability and freight insurance. There are many misunderstandings about freight shipping insurance — and when it makes sense to add it to your shipment.
Let’s discuss some freight shipping insurance FAQs to make good choices for your business shipping every time.
What is carrier liability?
Many businesses suppose their freight carrier’s liability limits fully insure their shipments. However, that’s not the case every time. A carrier’s liability limits are the maximum amount of liability that the carrier will accept if they are proven responsible for loss or damage.
Does carrier liability have limits?
Yes! Every carrier has specific liability limits they will cover, but it’s essential to know that these limits surpass the cost of shipping loss or damage. You should also remember that carrier liability never guarantees coverage for loss or damage — it’s up to the shipper to prove that the carrier’s failure caused the loss or damage to settle a claim. However, the carrier may not be legally liable, and the shipper could be minimally compensated.
Is carrier liability the same thing as insurance?
No! Carrier liability limits are not the same as freight insurance and can’t be counted on to protect the total value of your shipment.
What are the main benefits of insurance?
There are several advantages to insuring your freight — especially when you count on one of the leading shipping companies in the USA. These benefits include:
- Repayment on the total value of your shipment if loss or damage occurs
- Quicker claims processing than under carrier liability
- Complete coverage across the freight carrier network, regardless of the mode of transportation
- Devoted customer service that will fast respond to any problems and help you get through the claims procedure
When should I consider insurance?
With today’s supply chain risks, SMBs can’t afford the financial burden of lost or damaged international freight shipping. From increased cargo theft and natural disasters to freight carriers who are pushed extremely thin in our current economy, you could probably use some extra peace of mind that your shipments will be fully protected if issues arise — and freight insuranceis the best way to get it. We suggest insurance for all your international package shipping, especially if your freight is weak or high in value.
