I’ve noticed that many shippers often rely on declared value as a form of insurance, assuming it’s sufficient protection for their goods in transit. However, this isn’t true insurance. Consider it a shipping formality, not a financial safeguard.

True Coverage Requires More Than Declared Value

The declared value from carriers like USPS, FedEx, and UPS is often equated to insurance, but it’s a mistake to think of them as synonymous. These carriers require proving their fault to access compensation, making the process more of a legal exercise than simple reimbursement.

Actual cargo insurance offers a stark contrast. It’s designed to respond with speed and efficiency. The claims process tends to be more straightforward, with a lower burden of proof. You’re not merely asserting carrier liability; you’re ensuring your assets are protected regardless of fault.

More Than Liability Limits

Declared value tends to cap your recovery and is bound by a carrier’s liability limits. Genuine cargo insurance aligns more closely with the value of your goods, offering peace of mind and financial protection that mirrors the true worth of your shipment.

In my experience, understanding and opting for dedicated cargo insurance offers a calm assurance that declared value simply cannot parallel. It’s a prudent path that requires no urgency, just a quiet confidence in the right protection.

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.