The best way to ensure your freight arrives at its intended destination on time and undamaged is to choose a shipping company with a reputation for excellence. However, even the best shipping companies experience problems from time to time, such as severe storms and traffic accidents. That’s why shippers should always acquire freight insurance.
Why Carrier Liability Insurance Isn’t Enough
Every freight shipment is covered by insurance, whether or not the shipper acquires freight insurance. The shipping company has its own policy, called carrier liability coverage. The amount of carrier liability coverage is typically based on the freight class and commodity type. This policy will cover any losses up to a specific dollar amount per pound of freight. However, it’s important for shippers to understand that carrier liability insurance may not necessarily cover all of their losses in the event a shipment is lost, destroyed, or damaged. In other words, the compensation received may not total the full value of the shipment. Plus, in order to receive compensation from carrier liability insurance, the shipper has to prove the carrier was at fault.
Why You Need Freight Insurance
The limitations of carrier liability coverage underscore the importance of freight insurance. Freight insurance is a policy obtained by the shipper. Unlike carrier liability coverage, there is no requirement to prove the carrier was at fault. Freight insurance will cover the actual value of the goods, rather than a per-pound dollar amount. While it’s a good idea to purchase freight insurance on all of your shipments, certain shipments definitely need it. These include high-value shipments, like expensive artwork, furniture, and electronics. You’ll also need freight insurance for shipments containing goods that are easily broken.
Since its founding in 2004, Xcel Delivery Services has developed a reputation for honest quotes, timely deliveries, and exceptional customer service. It’s our highest priority to ensure your freight reaches its destination on time and undamaged. To discuss your freight delivery needs, give us a call in Phoenix at (602) 368-1300.
