Shippers often assume that the declared value provided by major carriers like USPS, FedEx, and UPS serves as adequate protection for their shipments. It’s a common misconception, but declared value is not insurance.

The Limits of Declared Value

Declared value is a carrier’s cap on liability, not a guarantee of coverage. When shipping with these carriers, the coverage only compensates if you can prove the carrier was at fault. This proof requirement is not only an administrative burden but can also lead to delays in settlement.

A Difference in Approach

True cargo insurance operates differently. It doesn’t hinge on the carrier’s acknowledgment of fault, which simplifies the claims process considerably. This means quicker resolutions and fewer disputes over liability.

Moreover, dedicated cargo insurance typically does not limit itself to a “declared” value but offers more comprehensive coverage against a broader range of risks.

Investing in independent cargo insurance reflects a sophisticated understanding of logistics and risk management. It ensures that when the unexpected occurs, the path to resolution is swift and straightforward.

In my experience, the assurance of comprehensive protection is invaluable, offering peace of mind that mere declared value cannot match.

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.