Carrier Liability and Freight Insurance

Carrier Liability and Freight Insurance

The shipping process is loaded with potential hazards, but you can avoid headaches by being prepared and protected

Carrier Liability and Freight Insurance

People often believe that carrier liability and freight insurance are very similar to one another. This is not exactly the case. Carrier liability and freight insurance are both very important to understand before shipping freight.

The shipping process is loaded with potential hazards, but you can avoid headaches by being prepared and protected. Differentiating between carrier liability vs freight insurance will help keep costs low if something goes wrong during the trip!

Carrier Liability and Freight Insurance

What is Carrier Liability?

Carrier liability is when the carrier is responsible for covering damages or losses that occur due to their own negligence. If an event such as bad weather such as snowfall and rainstorms causes damage the carrier can be liable. On the other hand, during natural disasters such as tornadoes and hurricanes, the carrier would not be held liable.

When shipping goods, it’s important to understand that the carrier’s provided limited liability policy will only cover a certain dollar amount per pound for damages. This means if your package gets damaged or lost during shipment then it is not covered on its full worth.

The amount you will be covered by the carrier is based on the freight class and commodity type and is often not much help. Third-party freight insurance can protect your valuable shipments in case of damage. The best way forward might simply involve adding an extra source of protection for you as the shipper and the carrier so that both parties know exactly where they stand when things go wrong.

Benefits of Freight Insurance

To ensure the safety of your shipment, it is important that you purchase additional coverage for Freight Insurance. This type of coverage can offer protection up until its full value and remove any need to prove liability in case anything happens during transportation. A freight insurance policy will provide peace of mind knowing in the event that your freight gets damaged, you have a safety net to fall back on.

Freight insurance is a way to make sure that your shipments are safe and sound. The shipper, consignee (the person receiving goods), as well as the insurance company will be involved in handling any claims or damages during transport from pick up to delivery. The insurance companies have been trained for such occasions so they know what steps need to be taken when something goes wrong!

The freight insurance industry is a tough one to navigate, but luckily for you, we have all the information and resources necessary. There are different coverage options available depending on how much protection your shipment needs. Additionally, packaging plays an important role in making sure that the shipment remains protected during its journey. The majority of the time, insurance companies will require professional packaging for insured shipments.

Putting Carrier Liability or Freight Insurance to Use

Now that you know the difference between carrier liability and freight insurance, let’s say your shipment got damaged during transit. We’ve put together some helpful tips for filing a successful claim!

After the shipment is delivered and freight is inspected:

Thoroughly inspect the integrity of the external packaging.
If external packaging, shrink wrap, etc. is not intact, record any damages on the Bill of Lading (BOL) or Point of Delivery Receipt (POD).
Take photographs of any external packaging damage and product damage.
Contact the freight carrier immediately to report damages (not your third-party logistics service provider).
Don’t throw anything away. If the carrier inspects the product, they will use this to determine if the damage to the product is consistent with damage to containers.
Cover your bases by looking at our packaging tips.

Understand Carrier Liability and Freight Insurance with a 3PL

Really want to maximize shipment coverage and protection? Partner with FreightCenter today and get all your shipping needs taken care of! Our experts can help guide you toward the right insurance decision for your freight. Get started with a free online quote today or call our experts at 800-716-7608.

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