In my line of work, I’ve observed a common misconception among shippers: that the declared value provided by carriers like USPS, FedEx, and UPS suffices as insurance. This belief often leaves shippers vulnerable to unexpected challenges.

The Misunderstanding of Declared Value

Declared value is not, in fact, insurance. It represents a carrier’s liability limit, subject to proving carrier fault. This proof can be elusive, involving lengthy processes and uncertain outcomes. The onus remains on you to demonstrate that the carrier is at fault for any damage or loss, which can be burdensome and time-consuming.

The Advantage of Dedicated Cargo Insurance

Dedicated cargo insurance shifts this dynamic. It simplifies claims, providing faster settlements without requiring extensive proof of fault. The coverage focuses on actual loss rather than procedural liability, offering a more streamlined path to resolution.

With proper cargo insurance, you gain assurance that your goods are protected from unforeseen incidents, rather than being limited by a carrier’s evaluation of value. It allows for a seamless continuation of operations even when the unexpected occurs.

In conclusion, securing your own cargo insurance means prioritizing resilience and efficiency over reliance on carrier-defined limitations. It’s about focusing on protection that truly aligns with your needs.

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.