Shipping cargo is an increasingly risky business. To help maximize your profits and reputation while lowering your risk, freight liability programs offer options for coverage beyond what is provided for in common law.
The Carmack Amendment, which governs all freight operations, states that the carrier is liable for freight loss, damage, and tardiness. In the event of a liability claim, the burden is on the carrier to prove it did not act in a negligent way and the loss occurred due to circumstances outside of its control. (These circumstances can include negligence on the part of the company filing the claim, natural disasters, and inherent danger in the cargo itself.) Cargo claims are made to recuperate lost value, and this can prove expensive to your business in the short- and long-term as you pay out claims and suffer setbacks to your reputation.
Freight liability programs offer broader protections and help you manage liability risk. Custom programs allow you to purchase a policy that protects against risks unique to the cargo you ship. By using an underwriter familiar with the specific risks of moving the type of freight you ship, you can get the best coverage for your company. In the event of a liability claim, it is unnecessary for you to prove that no negligence took place. In fact, by working with a reputable freight insurance company that caters to your needs, your risk can decrease significantly and your business may grow as a result.