Freight Insurance - Carrier Limited Liability vs All-Risk Shipping Insurance

FrieghtRun Insurance


Is All-Risk Shipping
Insurance Right for You?

Carrier Limited Liability
VS
All-Risk Shipping Insurance:
Knowing The Differences

When a shipment is lost or damaged, it can take months before your claim is settled under a carrier’s standard limited liability coverage. More than half of all carrier liability claims are denied entirely, and the Shipper receives nothing. In the other half of cases, Shippers are entitled to only a fraction of the total value of the shipment. In the meantime, this lost revenue and disruption to your supply chain can have dramatic and lasting ramifications on your business.

  • Do you ship high-value goods in LTL quantities?
  • Does the value of your typical FTL shipment exceed $100,000?
  • Can you aord to absorb the financial burden of a lost or damaged shipment for 3+ months while awaiting a settlement on your carrier liability claim?
  • If your carrier liability claim is denied in the event of a partial or total loss — as they often are in more than half of all cases — how long and how many new sales would it take to recoup a total loss?

Whether you ship big, or small, constantly or occasionally — if you can ship it, we can insure it. Your business deserves the highest standard of reliability and protection to ensure that your goods are covered for their full value, no matter what

Limited Liability coverage offered by a freight or parcel carrier is not the same as being insured for the value of the goods being shipped. Carriers have a legal financial responsibility to their customers when goods are lost or damaged, but only in certain circumstances, and only up to a certain amount. The Limited Liability coverage provided through your carrier will only reimburse damage or loss up to $100 in most cases for individual parcels, or for cents on the pound of the total weight for larger freight shipments — and only when you, the Shipper, can prove a loss was directly attributable to carrier negligence.

  • Major Parcel Carriers: Maximum payout of $100 customary
  • Ocean Carriers: Maximum of $500 per container customary
  • Domestic Air Carriers: $0.50 per pound customary
  • Less-Than-Truckload (LTL) shipments: Ranges from $0.10 - $25.00 per pound with customary payout of $0.50 per pound
  • Full-Truck-Load (FTL) shipments: Maximum payout of $100K customary

Under Limited Liability, Shippers are not covered for damage or loss due to common external factors such as Acts of God, theft, other drivers on the road, spoilage, or anything else out of the carrier’s immediate control. Additionally, if you cannot prove carrier negligence, you are not entitled to any payout for lost or damaged goods, so more than half of all Limited Liability claims are denied entirely.

Peace Of Mind, Every Time

We believe Shippers deserve better than the bare minimum, and that you should be entitled to every dollar of your shipment’s retail value should you experience a loss. FreightRun, in partnership with FSI, offers door-to-door coverage for the total value of your package or shipment, providing the supplementary protection you need to guarantee you are covered in the event of damage or loss, no matter when, where or why it occurs — and at some of the lowest rates in the industry.

We cut through the red tape to better protect your shipment, and get you paid faster. Our average claim is settled in just 7-10 days once supporting documentation is submitted, compared to 3+ months on average through the carrier. We help you get the money you need, when you need it. This translates to happier customers, faster sales recovery, and minimized disruption to your daily operations.

EXAMPLE
ALL-RISK INSURANCE
CARRIER LIMITED LIABILITY
Door-to-Door Coverage
Yes
Limits liability to the time only in which goods are in the care of the carrier
Pays regardless of shipper’s ability to prove carrier negligence as causation of loss
Yes
Shipper must prove loss or damage is the direct result of carrier negligence
Pays for losses outside of carrier’s control
Yes
Extensive defenses and exclusions for loss and damage as the result of external factors, such as Acts of God
Pays shipper for full value of lost or damaged goods
Yes
Financial responsibility only up to limits set by the carrier on their Bill of Lading
Typical Claim Duration
Claims paid within 7-10 days on average, once supporting documentation received
Claims settled within 120 days on average, once supporting documentation received
Insurance Issued by FrieghtRun Insurance
Supplementary Insurance is now available as an option to add when you book your freight on FreightRun.
FreightRun will automatically calculate the Supplementary Insurance price, and add it to your BOL.
Get an LTL or FTL Freight Quote