Freight insurance is also known as cargo insurance does not require you to prove that the carrier was at fault for damage or loss, just that damage or loss occurred. Freight insurance protects your customers and your business from loss or damage to your freight while in transit. The additional charges for freight insurance are based on the types of goods being shipped. Most freight insurance plans are provided by third-party insurance companies. Generally, if your goods are valuable, insurance adds the peace of mind of knowing you’re covered. Claims are handled directly between the insurance company and the consignee.
Every freight shipment that you book covers limited liability only. The amount of coverage is determined by the carrier and dependent on the type of goods. The limited liability coverage covers a fixed dollar amount per pound of shipment, which may offer less coverage than the real value of the shipment.
To make a valid liability claim, the carrier company must be at fault for the damaged or lost freight. If your freight got damaged from inadequate packaging, loading errors, or weather-related instances, the carrier is not responsible or at fault for the damage or loss to your freight. Moreover, any damage must be mentioned on the delivery receipt, or else the carrier will deny liability instantly.
It is the best way to consult a freight agent and explain the details of your shipment and needs for the extent of freight insurance coverage. A freight agent will be able to guide you on how to proceed and get the insurance for your freight. This way, you can rest assured knowing you’ll be covered in the unfortunate event that something happens to your freight.
Claims Process for Carrier Liability and Freight Insurance
If your shipment is covered by carrier liability coverage only:
• You must file the claim within 9 months of delivery
• The notice of damage must be included in the delivery receipt
• Proof of value and proof of loss is need
• The carrier has a time period of 30 days to acknowledge your claim and must give a response within a time period of 120 days.
• Carrier negligence must be proven
If your freight is covered by freight insurance:
• Proof of value and proof of loss is needed
• Claims are typically paid within 30 days
• If you have freight insurance then you do not need to prove carrier negligence
When looking for transportation solutions for your products, make sure to find a trusted trucking company such as Tenax Transport that can deliver your goods safely to their destinations.
You may also be interested in:
• ROLE OF PNC FILE IN FREIGHT DAMAGE CLAIMS
• CARGO INSURANCE AND ITS TYPES