When transporting goods, bad things can happen to your freight, from accidents to acts of nature. However, you’re normally covered for most of it by freight liability programs. Have a look to see what’s usually covered and if you know the difference between insurance types.

What Is Freight Liability?

Freight liability is the coverage provided by carriers that protect transported goods from damage, delay, and loss, but the shipper must prove that the carrier was negligent. So, if goods were damaged by the fault of the shipper, nature of the goods, an act of God or of public authority, they won’t be covered by this type of insurance. Once you’re sure it was the carrier’s fault, you can file a claim within 9 months of delivery. The carrier then has 30 days to make an acknowledgment and another 90 days to respond.

How Does It Differ From Freight Insurance?

Most carriers don’t offer enough insurance to cover the full total of the goods being shipped. Instead, you may be responsible for purchasing cargo loss or damage insurance to make up the difference in value. While some restrictions still exist, you won’t have to prove negligence on the part of the carrier like you do with freight liability programs. Just prove that you’ve had a loss and how much that loss has cost you.

When you’re in the shipping industry, many things can happen to your freight. Make sure you’re covered for everything you need before having your goods transported.