Cargo Insurance: Beyond Declared Value

In our industry, the subtle details often reveal significant truths. One such detail lies in the distinction between declared value and true cargo insurance. Major shippers like USPS, FedEx, and UPS offer declared value services, but calling it ‘insurance’ might be misleading.

Declared value is essentially a promise of limited compensation for loss or damage, but not without conditions. These carriers require proof of fault before agreeing to any compensation. This burden of proof can lead to cumbersome claims processes, leaving shippers in a bind.

True Insurance Versus Liability Limits

Conversely, actual cargo insurance offers a different paradigm. Claims tend to be processed more efficiently, and the requirements for proving liability are less stringent. This ensures that businesses continue as smoothly as possible, even amidst setbacks.

True cargo insurance steps in where carrier-provided options fall short. It isn’t about covering every mishap in exhaustive detail—rather, it’s about a commitment to streamlined claims and reliable protection.

After all, peace of mind in logistics is quietly invaluable.

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.