Freight Insurance

What Is Carrier Liability?

Carrier liability refers to the legal obligation of a shipping carrier to compensate a customer for loss or damage to their goods during transportation. Essentially, the carrier is responsible for ensuring that the goods are delivered to their intended destination in the same condition they were in at the time of pickup. Carrier liability can be established through a contract between the carrier and the shipper or through applicable laws and regulations.

Carrier liability is important because it protects customers if their goods are lost, damaged, or stolen during transit. In the event of a problem, the carrier will be responsible for compensating the customer for the value of the goods or the cost of repair or replacement. This helps ensure that customers are not left with a financial loss if something goes wrong during shipping.

However, carrier liability has limitations and may not cover all types of losses or damages. For example, carrier liability may be limited to a specific dollar amount per pound of the shipped goods. If the value of the goods exceeds this limit, the customer may only be able to recover a fraction of their actual loss. Carrier liability may also exclude certain types of damage, such as damage caused by natural disasters or acts of war.

Extra shipment protection is a supplemental insurance policy that a customer can purchase to cover any losses or damages that carrier liability may not cover. This can include protection against broader risks, such as theft, breakage, or damage from weather events. Extra shipment protection can also cover the total value of the goods being shipped rather than being limited by the carrier’s liability limit. That’s why additional shipment protection is important beyond carrier liability protection.

Extra shipment protection can give customers greater peace of mind and protection against unforeseen events during the shipping process. While carrier liability is an essential level of protection, it may not provide complete coverage for all risks, and extra shipment protection can help fill those gaps.

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.

UPS Capital Freight Protection Services

FreightCenter recently announced its strategic business partnership with UPS Capital Insurance Agency, Inc., a subsidiary of UPS. FreightCenter is pleased to offer its customers the opportunity to add peace of mind shipping coverage on all freight shipments. InsureShield® shipping protection powered by UPS Capital will provide customers shipment protection and ensure timely claim pay outs.

While a vast majority of shipments move without any issues, UPS Capital revealed through an independent study that nearly 92% of all shippers experience some type of loss, damage or delay each year while shipping freight. By utilizing transactional shipment protection via UPS Capital, FreightCenter customers can mitigate the financials risk associated with day-to-day supply chain mistakes or mishaps. UPS Capital shipment protection is offered on a variety of shipping options including less-than-truckload freight, partial loads and truckload shipments.

For more information on what commodities and shipments types are covered using UPS Capital shipment protection, please review the terms and conditions.