Do You Need Insurance for Full or Partial Truckload Freight Shipping?

June 12, 2019 by Meyer Baron
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Truckload Freight Should Be Covered by Cargo Insurance

Shippers are learning that full or partial truckload shipping has several advantages, including:

  • Fewer shipments (if any) from other carriers on board
  • More direct routes from pickup to delivery saves time
  • No worries about freight class, measurements and similar LTL concerns

While experienced shippers may consider purchasing cargo insurance as standard operating procedure for their LTL shipments, they sometimes forget that insurance is important when shipping by full or partial truckload as well. That’s because they see less risk involved since the shipment is handled fewer times and is not consolidated with other freight.

But that’s not the whole picture.

The same carrier liability limitations that cover LTL shipping also apply to full and partial truckload. If freight is damaged in transit, to file a claim with the carrier, you have to prove three things:

  1. The shipment was delivered to the carrier in good condition
  2. The carrier delivered the shipment unreasonably late or damaged
  3. The value of the damages

Once you’ve proven those three things, carrier liability is limited to an amount based on dollars per pound. So, if your shipment weighs 10,000 pounds, the carrier’s liability coverage will pay the same amount whether the shipment is 10,000 pounds of chocolate bars or 10,000 pounds of 200-year old violins.

Also, carrier liability doesn’t cover acts of God, the public enemy or the public authority. In other words, if you are shipping a truckload of heavy equipment and it is wiped out because of a tornado, a terrorist attack or hazardous road conditions, the carrier is not liable. If you are not insured, you are out of luck.

No matter how you look at it, relying on a carrier’s liability coverage to take care of you is not optimal.

It’s important to note that all of this is true for both LTL and truckload shipping, but often times, truckload shippers overlook the importance of cargo insurance.

When your truckload shipment is covered by cargo insurance:

  • You’re covered no matter how the damage was caused (unless it was your fault)
  • Most claims are paid in less than 30 days
  • You will need to prove that the goods were lost and their value

Of course, not all cargo insurance is the same (that would make things too easy). A broad range of coverage exists, depending on the type of policy you purchase. Be very specific with the insurance broker to make sure you get the coverage you want and need.

FreightCenter is not an insurance broker, but cargo insurance can be added to any shipment you book through FreightCenter. Our shipping experts can direct you to a licensed cargo insurance brokerage.

Ready to ship? Call one of our truckload shipping experts at 800.716.7608 today.

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