Freight transportation creates a complicated web of responsibility when it comes to assigning responsibility for damaged or missing goods. Recipients might file claims against any or all of the entities involved in the damaged product’s transportation. Freight liability insurance provides critical coverage for businesses that risk financial losses over missing or damaged cargo.
Understanding Your Liability
If a recipient files a claim against your company, evidence of damage may not be sufficient for them to collect compensation. There must be documentation reflecting the condition of the freight at each point in the shipping and delivery process. If you can prove that the freight was in good condition in your care, you may not be held responsible for the damages or loss. You may also be protected from liability if the recipient fails to document the damage upon delivery. Some claims may also be time-barred. Petitioners must also file their claims within specified time periods to collect compensation.
Securing Adequate Coverage
Your freight liability insurance needs depend on your business’s role in the shipping process. That is why working with an experienced insurance underwriter is essential. The underwriter should be highly knowledgeable about the liability needs of your profession. Carrying the right level of coverage will guard against financial losses in the event of a loss.