I’ve observed that shippers often rely on declared value coverage from carriers like USPS, FedEx, or UPS, assuming it protects their interests in transit. To clarify, this is not true insurance but rather a declared liability limited to specific faults by the carrier.

The Misconception of Declared Value

Declared value protection simply means that these carriers acknowledge a potential payout up to a certain amount. It’s important to understand that the burden of proving carrier fault lies entirely with the shipper. This means time-consuming investigations and negotiations, delaying resolution.

More Than Just Carrier Liability

True cargo insurance, on the other hand, extends beyond carrier liability limits and provides a security blanket that declared value cannot. Claims under cargo insurance are typically faster, the process less burdensome on the shipper, and the coverage more comprehensive.

Real protection isn’t about the assumption of carrier fault, but about ensuring your goods reach their destination, secured and assured. This is why dedicated cargo insurance for shippers matters profoundly.

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.