Insurance Service

Do I Need Freight Cargo Insurance?

A common misconception is that shipments are automatically insured by the carrier through their limits of liability. The truth is, carrier liability is NOT insurance and it may not protect the full value of your shipment. Carrier liability has limits based on the condition of the items being shipped and the class of the freight–regardless of the actual value of the shipment.

Cargo Insurance Coverage vs. Carrier Liability Coverage

If your shipment has Freight Insurance:

  • You get back the full value of your shipment!

  • Shipping insurance claims are typically paid in 30 days or less.

  • There is no need to prove carrier negligence.

If your shipment has Carrier Liability:

  • You may not get back the full value of your shipment because each carrier has its limits on reimbursement based on freight condition and class of freight.

  • Carrier limits of liability don’t have any specific deadline to issue the payment of a claim.

  • Carrier negligence must be proven, and the delivery receipt should include notice of damage upon arrival. If you discover damage after the driver leaves, report it within 5 days and file a claim within 15.