When shipping cargo, it’s easy for shippers to presume that the declared value option from USPS, FedEx, or UPS is enough protection. However, this is not quite as comprehensive as one might think.

Declared Value vs. True Cargo Insurance

Declared value protection often operates under the assumption that the carrier is at fault and liable for any damage or loss. This requires the shipper to produce clear evidence of carrier negligence, which can be a laborious task. The burden of proof doesn’t always align with the shipper’s frustrations and potential losses.

On the other hand, actual cargo insurance offers a different layer of security. Where carrier liability depends on a designated value and proof of carrier fault, cargo insurance typically provides broader coverage with less stringent requirements for burden of proof.

Real Protection Benefits

By embracing cargo insurance, shippers often enjoy a more streamlined claims process. The handling tends to be quicker and less restrictive because the coverage is designed more attuned to the shipper’s needs than the carrier’s limitations. This ensures shippers have a practical safeguard against the unwelcome surprise of denied claims due to unestablished fault or liability.

Ultimately, the nuance between carrier declared value and true insurance is not about opting for the least expensive solution but choosing the most reliable one. Cargo insurance offers a substantive peace of mind for those looking to secure their shipments against unforeseen setbacks.

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.