In the routine of running a trucking business, it’s easy to assume that the declared value options from carriers like USPS, FedEx, and UPS provide adequate protection for the goods your fleet transports. However, this assumption might be overly simplistic when considering the nuances of true cargo insurance.

The Misconception of Declared Value as Insurance

Declared value isn’t true insurance. It’s a contractual limitation of liability, not a guarantee. It covers specified loss amounts, but requires shippers to demonstrate the carrier’s fault to receive compensation. This is more of a test of liability than insurance coverage, which can lead to lengthy and often complicated claims processes.

Let’s consider what cargo insurance brings to the table. At its core, cargo insurance removes the need to prove carrier negligence. Instead, it offers straightforward claims processes, aiming to meet shippers’ needs efficiently and effectively, regardless of fault. This positions it as a safety net to preserve the integrity of business operations even when unexpected mishaps occur.

Beyond Liability Limits

Relying solely on carrier liability limits places the burden of proof on shippers, which can be a significant hurdle. Cargo insurance, in contrast, translates into quicker settlements and diminished hassle, protecting shippers from the shortfalls of declared value protections.

In my experience, investing in comprehensive coverage cultivates a sense of assurance, unraveling the complex threads of liability that declared value fails to address.

Closing the gap between carrier liability limitations and true insurance protection is not about urgency; it’s about making informed choices grounded in a clear understanding of the protections available. It’s a step toward securing the peace of mind that comes with knowing your cargo is truly covered.

Andria Baunee is the principal broker at National Heritage Risk – a boutique insurance brokerage that caters exclusively to medium-sized fleets in the United States. For more information, email Andria@NationalHeritageRisk.com or call (716) 402-8686.