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A Beginner’s Guide to Carrier and Freight Liability in Case of Damaged Goods

When did you discover that carrier’s liability insurance is not similar to freight insurance? These are two different shipment liabilities that protect transport operators from their contractual responsibilities while carrying goods in transit. Knowing the difference between carrier liability insurance and freight insurance will help you cover your shipment and provide you the best coverage in case of freight damages. 

About Carrier Liability:

What is Carrier Liability?

When the carrier liability insurance policy is responsible for covering the losses, it amounts to carrier liability in case of damage or losses to the goods. A carrier is legally entitled to transport goods by land, water, and air. In cases that fall out of the carrier’s purview, like the shipper/packager’s error, or an act of God, the carrier shall be deemed excused. 

How much value does carrier liability cover?

The carrier amount covers a certain dollar amount as predetermined per pound, which means that it doesn’t cover the full value of the damaged commodity. The amount of coverage relates to the freight class or commodity type.

About Freight Liability:

What is Freight Liability?

Where carrier liability stops, freight liability begins. If the shipment is valuable, then the additional third-party insurance comes into the picture. The parties in the scenario are the shipper, the consignee, and the insurance company. The coverage policies and efficient packaging are important to make sure that you are not at fault.

How much value does freight liability cover?

The independent third-party freight coverage protects the full value of the shipment. One also doesn’t need to prove the liability in case any damage occurs. 

Freight Liability vs. Carrier’s liability, what should you choose?

Freight insurance aims to protect the carrier, while cargo insurance is designed to protect the sender of the goods. The receiver of the goods is accountable for the damages if occurred in cases where the insurance is not taken. 

The aftermath of damaged goods:

How to deal with damaged freight?

Damaged goods can lead to extreme tension and loss of sane mind along with financial loss when your goods are not covered; even the insured can get hypo tensed, even if they have the appropriate insurance cover to help them with the loss. 

To successfully get your claim without much hassle, follow these basic practices:

Immediate Assistance:

  • Do not listen to the driver if he says that he has nothing to do with damaged goods since ultimately he was the one to deliver the goods in such a condition.
  • Accept the goods because you will get the claim if you thoroughly document the specifics and file a claim. 
  • Do not mishandle the damaged goods, as it might lead to further damages and question the insurance claim. Make arrangements not to mishandle the goods.

Damaged packaging:

  • In case of ruffled outer packing, record the damages on the Bill of Lading or Point of Delivery Receipt.
  • Take proper photographs of the packaging and any good damage inside. 
  • Keep all evidence with you, including the stickers and the packaging covers. 
  • Contact the freight carrier and record the damages. 

It’s advised That:

Do not panic when you get damaged delivery; it’s pretty common in shipment, which is why third-party insurance is mandatory in many countries. It’s important to keep calm and pay for the contractual amount to have an original copy of the paid freight bill. It will help you get your compensation with ease. It might be upsetting, but a single route to get your claim!

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