Freight Insurance vs Carrier Liability

Weighing the need to add insurance to your quote.

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What is Freight Insurance?

Freight insurance provides additional protection beyond the default carrier policy. Standard carrier policies tend to only cover blanket amounts and do not adjust according to your freight’s value. The blanket amounts may be a flat amount or a sliding scale based on a dollar to pound ratio. An independent freight insurance policy can offer protection for the full value of your shipment and help you avoid the burden of proving liability should any damage occur. Basically, if your shipment is valuable, insurance adds the peace of mind of knowing you’re covered. Claims are handled directly between the insurance company and the consignee.

What is Carrier Liability?

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Every freight shipment that you book comes with limited liability coverage. The amount of coverage is determined by the carrier and dependent on the commodity type. The limited coverage covers a certain dollar amount per pound of freight, which may offer less coverage than the actual value of the freight.

To make a valid liability claim, the carrier must be at fault for the damaged or lost freight. If damages occurred from inadequate packaging, loading errors, or weather-related instances, the carrier is not responsible or at fault for the damage. In addition, any damage must be noted on the delivery receipt, or else the carrier will deny liability instantly.

About Freight Insurance Coverage

It is best practice to talk with a freight agent and discuss the details of your shipment and your needs for freight insurance coverage. You and your freight agent will work together to decide what extent of freight insurance coverage you may need. Additionally, a freight agent will be able to provide you with recommendations for how to proceed and will inform you of what is insurable under FreightCenter’s insurance partners. This way, you can rest assured knowing you’ll be covered in the unfortunate event that something happens to your freight.

When booking an LTL shipment online, you will simply be asked if you would like to add insurance. Remember, certain items may not be insurable. Below are types of insurable items and types of not insurable items.

 

Types of Insurable Items:

  • Non-perishables
  • Kayaks and canoes
  • TV’s – professionally packaged or in original box
  • Tablets – professionally packaged or in original box
  • Crated/fragile items - glass, ceramic, marble, tile (as long as it’s crated)
  • Business goods shipping from residential

 

Types of Not Insurable Items:

  • Cell phones
  • Boats
  • Yachts
  • Household goods and personal effects from residential locations

Keep This in Mind When Opting for Freight Insurance:

Fragile items such as glass, ceramic, marble, pottery, granite, tiles, and other similar breakables, must be professionally packed – as evidenced by pre-shipment photos or professional packing services receipt – or in new original manufacturer packaging as a condition precedent to coverage.

We understand it can be difficult to trust a company with your freight. Get extra piece of mind by purchasing additional freight insurance for your next shipment. Insurance options may be available when you book your freight shipment with FreightCenter. Shipment insurance purchased through FreightCenter takes the hassle and worry out of coordinating your next shipment. Obtaining your own freight insurance causes extra stress and work for you, so let FreightCenter handle all the paperwork for you!

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