Know Your Freight Liability Coverage

freight liability insurance programs

Does your freight insurance policy really give you the coverage that you need? This is an important question that you should be asking yourself. Some brokers have estimated that companies have denied nearly 30 percent of filed claims based on a number of different reasons. One of the first steps you can take in making sure you are fully protected is to research freight liability insurance programs and to understand the difference between basic freight and liability coverage.

Basic Freight Insurance

Basic freight insurance only comes with a limited amount of liability coverage and is often restricted by the party at fault and the amount lost. Many policies will only cover a limited amount of goods and the cost of items lost can quickly exceed the policy’s established sum, leaving you responsible for the rest. Additionally, goods are only covered if the actual carrier is at fault. Items, damaged by weather events, natural disasters, poor packing or loading mishaps, will likely not be covered under these policies.

Liability Coverage

In contrast, freight liability insurance programs can be adjusted to suit your specific needs. These plans can be adjusted to cover events that are outside of carrier fault and can be tailored to protect you against natural causes. They can also be altered to address the specific worth of your goods. While these policies can be helpful, you want to make sure that you are doing your research and understand what specifically is covered under your particular policy. This will help you avoid denied claims and lost profits.