Carrier Liability is NOT Insurance
Many shippers mistakenly think carriers insure their goods. They don't. Carriers have limited liability under their tariff, typically:
- LTL carriers: $0.50 - $25 per pound (varies by carrier)
- FTL carriers: Usually $100,000 max per truck
- Small parcel: UPS/FedEx max $100 declared value by default
If your 500 lb shipment worth $10,000 is damaged and the carrier's liability is $5/lb, you'd only get $2,500. That's a $7,500 loss.
When to Buy Freight Insurance
- High-value goods — Electronics, machinery, specialty products
- Fragile items — Glass, ceramics, artwork
- Long-distance shipments — More handling = more risk
- New or unproven lanes — First time shipping a particular route
How Much Does It Cost?
Freight insurance typically costs 1-3% of the declared cargo value. For a $10,000 shipment, that's $100-$300 for full coverage. Much cheaper than the potential loss.
How to File a Claim
- Note damage on the delivery receipt (POD) immediately
- Take photos before and after unloading
- File a claim within 9 months (for carrier liability) or per your insurance policy terms
- Keep all documentation: BOL, POD, photos, invoices
