This Is Why Freight Insurance Is an Absolute Must

October 26, 2017 by FreightCenter Team
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The Breakdown on Freight Insurance

Often, shippers leave the fate of their freight in the hands of chance. As experts in freight (and having seen it all) we can’t stress enough the importance of purchasing additional freight insurance for your shipment. What you may have saved in the short term by not including insurance, will cost you double that amount overall if something happens to your freight during transit.

The truth is, there’s a number of outcomes that play out when your freight is in transit. A snow storm could sweep in and get into the trailer and ruin your shipment of pristine paper products. Or, a fellow driver on the road could rear end the truck and ruin your auto body parts that were aboard the truck. We can certainly hope for the best, but you should simultaneously be planning for the worst.

Why is Freight Insurance So Important?

There are two main reasons why purchasing freight insurance is so important and will only help you in the long run.

  1. Without freight insurance, you’re only covered under minimal freight liability through the carrier. This means that should any damage occur, you will be responsible for proving carrier liability – and this is often a lengthy and difficult task. In order to have your freight covered through carrier liability, you must:
    1. File your claim within 9 months of delivery.
    2. Note damages on the delivery receipt at the time of drop off.
    3. Provide proof of value and proof of loss.
    4. Prove carrier negligence.

    Once you’ve completed all those steps, the carrier still has 30 days to acknowledge your claim and must then respond within 120 days.

  2. Cargo theft is much more common than one might think. According to Inbound Logistics, of the 628 cargo theft incidents that occurred in 2015, less than 20% were recovered. Overall, the theft resulted in $27.9 million in stolen cargo. Not to mention that cargo theft is grossly unreported because carriers don’t want potential shippers to reconsider using them if they were targeted by cargo thieves in the past. The FBI reports that most freight theft occurs in parking lots and garages, docks, and freight terminals.

FreightCenter’s Insurance Coverage

FreightCenter partners with full-service insurance provider – Falvey Insurance – to protect your shipment beyond what is provided through basic carrier liability coverage. Although most items can be covered through our provider, some items simply cannot be covered.

Examples of freight items that are insurable:

  • Non-perishables
  • Kayaks
  • Canes
  • Crated/Fragile Items
  • TV’s – professionally packaged or in original box
  • Tablets – professionaly packaged or in original box

Examples of freight items that are not insurable:

  • Cell phones
  • Boats
  • Yachts
  • Household Goods

When shipping items with freight insurance, you should still be sure to properly package your freight for any and all conditions that it may endure during transit.


Interested in shiping with FreightCenter? Get your free, instant freight quote now and be sure to opt in for freight insurance for maximum peace of mind.

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