Transportation Liability & Insurance

Anyone in the logistics industry or a related field should be knowledgeable about freight claims and the insurance liability that comes along with it. If an item is lost or damaged while being moved, claims are how value is recovered. Knowing the difference between freight insurance and freight liability is important.

Liability is who responsible for the lost or damaged items and who will be responsible for recuperating the value of said goods.

Insurance will provide protection against some of these losses if you meet the requirements stated in the insurance package. Remember, there is no single insurance form for freight insurance that will cover all situations. Some of the common types are all risks, broad form, motor truck freight and legal liability. The names are misleading because of what we previously stated. Freight loss cases can be denied for a variety of reasons such as not being reported by insured in a proper time frame, theft of cargo not covered because left unattended, perishable goods spoiled because proper maintenance wasn’t done.

The only way to know for sure is to look at and read your specific policy.

All booked freights have limited liability coverage. How much depends on the carrier and product. For the liability claim to work, the carrier must be at fault for whatever happened. If the damage was out of the control of the carrier then they are not at fault. Weather would be an example where they wouldn’t be at fault. If the carrier is denied liability, this is where you would want the freight insurance. If you happen to need some sort of insurance, look at Miller Insurance Agency in Bloomington, IL.¬†We know that this whole topic can be confusing but hopefully we cleared up some of that misunderstanding. Claims are never a good thing to deal with but having the proper liability or insurance is necessary.