Damage of goods in the shipment can be a huge headache and loss, which is why shipment of goods is always covered by some liability coverage usually determined by the carrier. The value of the coverage depends upon the type of commodity or the freight class of goods being shipped. The carrier liability coverage is determined by the weight of the load based on what you receive compensation during a mishappening. The shipper has to file a claim proving that the carrier is at fault for the lost freight or serious damages. However, the carrier’s liabilities are limited in certain circumstances, such as when the damage is caused due to natural calamities. Additionally, the carrier is not at fault if the freight was not packed or loaded properly. Carrier may also deny any liability if the damage is not noted on the delivery receipt.

What happens when the shipper files a claim against the carrier? 

Suppose you have suitable carrier liability insurance and the carrier accepts the claim evidence. In that case, they are required to pay for the cost of repair, which is applicable according to the insurance policy. The Carriers liability insurance protects your goods or business from potential financial losses, especially if you are carrying goods on behalf of someone else. You are liable for damages to the goods and other secondary damages if you are a:

  1. Freight forwarder
  2. Courier
  3. Forwarding agent
  4. Furniture removal company
  5. Involved in eCommerce 

What is the scope of carrier legal liability insurance coverage?

The carrier liability insurance policy covers various damages and risks associated with the goods in your shipment for the vehicle while in transit. The legal insurance coverage includes:

  1. Damage caused to the goods directly due to accident, fire, or explosion to the vehicle in shipment.
  2. The policy covers any financial loss resulting in the damaged part of cargo due to the lost freight.
  3. Breakage due to inappropriate handling.
  4. Carrier legal insurance policy usually covers cargo salvage, transshipment, emergency storage costs.

Carrier liability insurance policy is specifically designed To cover an insured legal liability for physical damage and loss of goods. The damages may include an accident or fire to the vehicle carrying goods whose vehicle number is stated on the policies. The policy basically pays for the expenses of the physical destruction, loss, or damage to goods aur Merchandise while in transit. The terms of the policy also hold true if the destruction was caused during loading or unloading, ordering the normal course of transit.