Basics of Cargo Insurance

Freight carriers are legally required to carry a minimum amount of insurance, but this insurance provides limited coverage. This required insurance, referred to as “carrier liability,” is limited to 10 cents per pound of the shipment. This carrier liability cannot exceed the invoice value of your shipment. Your carrier should be able to provide you with specific information on coverage, deductibles, and claims management.

Purchasing Additional Freight Cargo Insurance

Because freight is more susceptible to damage than smaller shipments, you may want to purchase additional insurance to cover your items. Freight insurance can be purchased from a variety of third-party companies which offer coverage that exceed carrier liability. This covers approved cargo against damage in addition to lost or stolen goods. If you want to buy additional insurance, you can do so during the booking process. Simply enter the value of your item(s) into the “Coverage Amount” box, keeping in mind the limits of liability established by the cargo rates. You may choose to have your own insurance provider.

You may also be covered by other sources of insurance, including:

  • Business insurance
  • Homeowners insurance
  • Credit card insurance (if you use it to pay for cost of shipment)
  • Recording damages and filing claims

At delivery, inspect your shipment along with your driver. Note any visible losses or damages. Do not refuse the shipment unless damage has rendered your freight worthless. As soon as possible, unpack and inspect your shipment. PakDelivery is not responsible for any dispute(s) that may arise between you and the delivery person.

How It Works

Basically, you are responsible to ensure whether the delivery person is insured or not! PakDelivery shall not be held responsible for any liability arising out of any matter or damage to your goods. Please ensure proper packing before handing your shipments over to the delivery person, or negotiate and formulate an agreement with you selected delivery person before you hand over your goods. PakDelivery shall not be held responsible for any theft, whatsoever.

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