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The Importance of Freight Insurance

  • Have you ever received damaged freight?
  • Has your cargo been lost or stolen?
  • Have you ever been denied on a claim settlement or paid significantly less than the value of your cargo?
  • Would you like to have your claims brought to resolution in a timelier manner?

All types of cargo are transported over-the-road. Shipping insurance provides protection against shipment damage or loss and a shippers’ exposure to financial loss.

In the United States, the most highly sought after freight are pharmaceuticals, consumer electronics, apparel, and food. The work of cargo thieves has a rippling effect on the economy.

When freight arrives, the consignee should always inspect the load before the driver leaves. A regulated carrier operating in interstate commerce is liable for freight loss, delays and damage with exceptions made under the Carmack Amendment, 49 USC 14706. The Carmack Amendment was adopted in order to establish a uniform nationwide standard of accountability for freight loss and damage.

An Inbound Logistics article details a theft incident:

What was stolen? A truckload of Nintendo Wii gaming stations that were headed to a Best Buy DC right before Christmas.

How does it affect Best Buy? Best Buy wasn’t able to receive a replacement shipment from the vendor in time to meet its customer’s demands. Those customers went to a competitor to buy the Nintendo Wii, and Best Buy lost sales plus any additional items the consumer would have bought while visiting the store.


What about the trucking company’s liability? The trucking company involved will most likely be held liable for the loss and have to pay Nintendo or Best Buy for the stolen product. Even if the trucking company has insurance, it might not cover the entire loss based on the policy deductible.

Does that affect shippers? Now, the trucking company might raise rates for future shipments of Nintendo Wii stations to cover its losses. The higher rates passed on to Best Buy, will then be passed on to customers.

Can shippers prevent cargo theft? To avoid theft and protect your cargo, shippers should utilize GPS shipment tracking technology, monitor carrier’s performance and requiring your workers and drivers hauling your freight to stay alert of suspicious activity.

What happens when you need to file a claim? When a claim is filed, an investigation begins following standard policies. For efficient claim handling, a shipper should have the BOL, a copy of the paid freight bill, a copy of the invoice, a copy of packaging slips and the standard claim form.

What are the benefits of shipper’s insurance?

  • Cover your shipment’s full monetary value
  • Reasonable, predictable rates
  • Expedited online claims solution
  • Inbound and outbound coverage
  • Higher level of customer service

Read More:

PLS partners with one of the largest global insurance providers with underwriting authority secured 100%. PLS’ shipping insurance insures the full value of your shipment at a very reasonable rate. We provide all risk coverage on domestic shipments. For more information, contact


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