It’s a common assumption that shipping goods with major carriers such as USPS, FedEx, or UPS equates to full protection. But those who dive deeper find these carriers offer a declared value system, not true insurance.

What is Declared Value, Really?

Declared value from these carriers merely sets a ceiling on their liability under specific conditions. It’s essential to remember that these carriers necessitate proving their fault before any compensation is issued. This can prolong claims processes significantly and place a heightened burden of proof on the shipper.

The Limitations of Carrier-Provided Coverage

Relying solely on declared value can be a significant pitfall. The intricate nuances of carrier liability can catch even experienced shippers off-guard, usually at the most inconvenient of times.

True cargo insurance operates differently. It offers broader, more tangible protection with a reduced burden of proof. Claims are typically settled more swiftly, freeing shippers from the exhaustive task of proving fault under the carrier’s stringent guidelines.

It becomes apparent why many shippers opt for additional cargo insurance. By understanding these distinctions, a shipper ensures the robustness of their operations, safeguarding against unnecessary risks that might otherwise linger.

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.