In my experience, many shippers rely on the declared value options offered by carriers like USPS, FedEx, and UPS without a second thought. However, this approach may not cover all bases when it comes to the security of your cargo.

Declared Value Isn’t Insurance

Declared value arrangements are often mistaken for actual insurance. In reality, these are merely methods for setting liability limits. Carriers require shippers to establish proof of fault and liability when claims are made, which can be cumbersome and time-consuming. This often leaves businesses in a state of discomfort, pondering over unresolved claims.

The Limitation of Carrier Liability

When shipping with declared value, any claim is scrutinized to evaluate the fault. It involves proving that the loss, damage, or delay was the carrier’s responsibility. This can be a bureaucratic hurdle and requires documentation that not every shipper is equipped to handle efficiently.

Independent Cargo Insurance: A Real Solution

Cargo insurance, on the other hand, offers shippers peace of mind with faster claims processing and a lower burden of proof. By choosing actual cargo coverage, shippers are safeguarded against unforeseen events beyond their control, with the comfort of knowing their assets are well-protected.

Such coverage not only aspires to compensate shippers for physical losses but does so without relying on protracted liability disputes with carriers. This detachment from carrier liability limitations marks a significant advantage.

In my professional judgment, while carrier liability coverage might work in certain contexts, relying solely upon it exposes shippers to unnecessary risk and potential hassle. True cargo insurance serves not as an extravagance but as a necessity for any prudent shipper.

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.