All cargo companies protect the goods they ship, whether it be local or interstate deliveries. Today’s freight liability insurance programs are based on the Carmack Amendment, which was established in 1935. This law states that all carriers are responsible for shipment loss, damage and delay as long as the event was not due to one of the following reasons:
- An act of God
- An act of public enemy
- An act of the shipper
- An act of the public authority
- The inherent nature or vice of the goods themselves
In general, the carrier’s liability covers up to a certain dollar amount per pound of freight.
The protection offered by freight liability insurance programs does not cover all losses. If your goods were packed improperly, damage incurred during shipping is not the responsibility of the carrier. Loss due to inclement weather such as flooding isn’t covered. In many cases, the coverage amount is less than the actual value of the item being shipped.
Therefore, take time to understand the amount of coverage you are receiving before you ship your goods. If necessary, you can purchase additional freight insurance from the carrier or through a third-party vendor.
Your cargo company’s freight liability insurance programs are in place to help you ship goods reliably and on time. When you obtain the right level of coverage, you can protect yourself from unnecessary expenses and aggravation.