All-Risk Shipping Insurance or Liability Insurance?
As a business owner utilizing shipping services, you know the importance of a high-quality partnership in which you can be confident that your product will get to its destination on time, intact, and on budget. But what if it doesn’t? Are you covered?
Your carrier likely offers the standard Limited Liability Coverage, but that may not cover the costs in all situations. That’s why we’re talking about Limited Liability Coverage vs. All-Risk Shipping Insurance, and why you might need to consider all of your options.
Covering the Cost of a Missing or Damaged Shipment
If your shipment is lost or damaged en route, the shipping company has a legal responsibility to cover the costs. But Limited Liability Coverage doesn’t actually cover the full cost of all shipments, which means your claim may be covered only up to $100 per parcel or just a few cents per pound on larger freight shipments.
In addition to mediocre payouts, the responsibility of proving that the loss or damage was due to negligence by the shipping company, as well as the value of the shipment, is placed solely on the shipper. That means that if you can’t prove that the damage or loss was the fault of the shipping company, your lost or damaged goods may not be covered by Limited Liability Coverage at all.
Keeping the Business Going When a Shipment Goes Awry
One of the biggest problems with Limited Liability Coverage is that its territory is very narrow. For smaller businesses, a lost, late, or damaged shipment of significant value could severly hurt their business.
If you’re not in a position to absorb a substantial financial burden for 3-6 months while the settlement is going through on your carrier liability claim, you could lose your business. When it does come through, a settlement payout isn’t always as high as the shipment’s value, and the entire process can be stressful and painstaking.
Ensuring Coverage with All-Risk Shipping Insurance
Whether you’re working within a small or large business, ensuring that all of your shipments are completely covered against carrier negligence, damage, and loss is paramount to keeping the business going. All-Risk Shipping Insurance can ensure that you’re covered against all of these and that you’ll get a timely and appropriately funded payout on your claims.
All-Risk Shipping Insurance pays the shipper of the lost or damaged item regardless of your ability to prove the carrier’s negligence as the cause of the problem. You’ll get the full value of the goods and the claim is typically paid out within 7-10 days once all of the documentation is provided. So when it comes to choosing a carrier or 3PL, you may want to consider a company that offers All-Risk Shipping Insurance.
Learn more about AmRate Logistics Solutions from Amware by contacting our team now, and cover your next shipment with All-Risk Shipping Insurance, or download the whitepaper below and learn more.