Most shipments arrive without a problem. But when one does not, the difference between a quick recovery and a painful loss often comes down to a decision made before the truck left: how the cargo was covered.
Carrier liability is not cargo insurance
Many shippers assume that if the carrier damages or loses the cargo, they are covered for the full value. In practice, a carrier's liability is generally limited by the contract and by the applicable laws, and the limit is often lower than the value of the goods. There can also be exclusions, for example when the damage is caused by inadequate packaging.
Cargo insurance is separate coverage that protects the value of your goods against loss, theft or damage in transit, under the terms of the policy. The exact limits and conditions vary, so ask what applies to your shipment before it moves.
What to check in a policy
- What is covered. Some policies are broad ("all risk") and others cover only listed events. Read the exclusions.
- Where and when it applies. For cross-border freight, confirm that coverage includes the whole route, the border crossing and both countries, and any temporary storage along the way.
- How the cargo is valued. Many policies insure the invoice value plus freight costs. Confirm how yours does it.
- The deductible. The amount you absorb on each claim.
- How to file a claim, and the deadlines to report one.
Declare the real value
Declaring less than the cargo is worth lowers the cost, but it can also lower what you receive if something goes wrong, because a partial loss may be paid proportionally. Give the carrier an accurate declared value, and tell them about high-value or fragile items up front so the coverage can be arranged properly.
Reduce the risk before pickup
Insurance pays after the damage, and good preparation reduces the chance of it happening:
- Pack for the trip. Use sturdy pallets, stretch wrap, corner protection and sealed boxes. For LTL, remember that other freight will travel next to yours. See FTL vs LTL.
- Label clearly on more than one side of each piece.
- Photograph the cargo before it leaves, with the packaging visible.
- Make the documents match the cargo. A claim is easier to support when the invoice, packing list and bill of lading agree.
If the cargo arrives damaged
- Inspect at delivery, before the driver leaves whenever possible.
- Write the damage on the delivery receipt. Be specific: "two pallets with crushed boxes", not just "damaged".
- Take photos of the cargo, the packaging and the vehicle.
- Report it promptly to your carrier and your insurer. Policies and contracts have deadlines.
- Keep everything: the invoice, packing list, bill of lading, delivery receipt, photos and repair or replacement estimates.
How On Time International helps
We offer cargo insurance coverage from $25,000 to $100,000 USD, based on the value of the shipment. If your cargo is worth more, tell us the declared value when you request a quote, so we can advise on your options before the shipment moves. Our team also reviews documentation with your customs broker before pickup, which helps keep the shipment moving smoothly. Read more about our ground services.
