In the world of logistics, assumptions often lead to oversights. One such assumption is that relying solely on the declared value coverage offered by carriers like USPS, FedEx, or UPS is sufficient protection for shipped goods. But what exactly is declared value if not true insurance?

Declared Value Is Not Insurance

Declared value serves more as a carrier’s pricing mechanism than bona fide insurance. It’s the declared worth of a shipment, which influences shipping costs but doesn’t equate to a protective measure against loss or damage. These carriers, while efficient in transit, require proof of their own fault and liability before any reimbursement is considered.

The Burden of Proof is Key

When it comes to declared value, demonstrating that a carrier is at fault can be burdensome and time-consuming. This process often prolongs the claims experience and may not yield satisfactory results for the shipper.

Actual cargo insurance stands apart because it reduces this burden significantly. It doesn’t hinge on proving carrier liability, offering a more straightforward path to recovery should incidents occur. This nuance may seem minor but can influence the speed and adequacy of claim settlements.

Protection That Matches the Complexity

Commercial shipping is a complex undertaking, and the need for robust protection is a reality for many. Cargo insurance specifically tailored for shippers delivers just that. It affords an assurance that transcends the limitations of declared values and taps into substantive coverage that speaks to the true nature of the risk at hand.

As transport logistics evolve, the expectations from coverage grow. In mitigating these inherent risks, the clarity between declared values and genuine insurance becomes ever more crucial.

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.