Understanding the Differences Between Freight Insurance and Freight Liability

When you ship by truck, train, or air, you can never be sure of what will happen to the package until it reaches its destination safely.  If your shipment is lost or damaged, it is important to know what is covered by liability and what is covered by freight insurance.  It is important to choose the right amount of freight insurance and freight liability before you ship.

What is Freight Insurance?

Freight insurance is a shipment specific policy that insures the total or partial value of your cargo.  It is a policy exclusive to the shipper and their specific freight shipment, and one which only handles their claims.

What is Liability Coverage?

Law requires all carriers to have liability coverage.  This liability coverage will cover a certain amount of the cargo’s value and will protect the carrier in case the shipment goes awry.

Which One Should You Get?

Every booked freight shipment comes with limited liability coverage.  The amount of coverage is determined by the carrier and based upon commodity type and negotiated tariffs.  It covers a certain dollar amount per pound of freight.  In many situations, the included liability coverage may be less than the value of the shipped goods.

In order to make a liability claim, the carrier must be at fault for the damaged or lost freight.  If the damage is from inadequate packaging, loading errors, or weather-related causes, the carrier may not be at fault.

In some cases, your freight shipment might have a higher value than what it covers under the liability included.  This is when purchasing additional freight insurance is the best option.

Extra freight insurance covers the shipped items and the cost of freight shipping.  It is redeemable under all types of loss, with no proof of fault required.

Performance Plus Global Logistics Handles All Freight

Performance Plus Global offers all kinds of shipping and insurance coverage options. Whether you are shipping performance parts like engines or sending time-sensitive and urgent packages using expedited shipping, your shipments are eligible for insurance coverage.

We have door to door “all-risk” coverage that includes the packing as well as all additional costs.  This way you do not have to rely on the carrier’s insurance.

Performance Plus is a shipping and global logistics company that handles all your freight needs, from shipping to insurance, at a reasonable rate and with full transparency.