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How to Ensure Financial Coverage if your Shipment is Lost or Damaged

May 30, 2017
5 min read
Less Than Truckload
AmRate Software
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As a business owner, you’re used to covering your bases. You’ve built a team you trust to do the hard work that needs to get done. You have insurance coverage for your building in the event of a fire, break-in, or flood. And you keep to your contracts to ensure that your customers are satisfied. But if you’re relying on a shipping company to get your product from Point A to Point B, you may have to do a little extra legwork to keep all of your ducks in a row. Keep reading to find out how to ensure financial coverage if your shipment is lot or damaged.

Learn What Isn’t Covered by Carrier Limited Liability

Most shipping companies offer standard Limited Liability coverage. This coverage ensures that the carrier will fulfill their financial legal responsibility to their customers in the event that product is lost or damage in transit. But here’s the problem: Limited Liability coverage doesn’t cover everything.

In fact there are several instances in which you won’t be covered at all. Factors that aren’t covered under Carrier Limited Liability include “acts of God,” other drivers on the road, theft, and even spoilage. In fact, the only thing that is covered by Limited Liability is carrier negligence that you can prove. Even then, more than half of all Limited Liability claims are completely denied.

All-Risk Shipping Insurance Ensures Coverage No Matter What

Thankfully, there is an alternative to living with Carrier Limited Liability, and that is choosing to get covered by All-Risk Shipping Insurance. With door-to-door shipping coverage, you can feel confident that your products will get to their destination unharmed and on time. And if it doesn’t get there in top condition, you won’t be responsible for finding out whose fault it is.

Find Out the Average Timeline & Process for Claims Payout

To ensure your financial stability when a shipment is lost or damaged, you need to know that you’re going to get your money back fast.

Unfortunately, the claims process for Carrier Limited Liability coverage can take upwards of 3 to 6 months, and that’s if you even qualify for reimbursement at all. That timeline starts after all of your documentation of carrier negligence has been received by the claims company.

Even if you’re shipping low-dollar items, a single Limited Liability of an LTL (less than truckload) shipment, could set your business back months. And if you’re shipping a FTL shipment (full truckload), where the maximum payout is typically around $100,000, you could find yourself in a bit of a pickle waiting up to 120 days for reimbursement.

All-Risk Shipping Insurance Ensures Claims Are Paid Out Quickly

Instead of waiting up to 120 days to get your money back after you’ve finally proven that the fault was the shipping carrier, you could get your money back within 7 to 10 days.

Once documentation is received by the All-Risk Shipping Insurance claims department, you’ll get the full value of the lost or damaged goods reimbursed to you. And it doesn’t matter whose fault it is, you’ll get paid regardless of your ability to prove shipper negligence and whether or not the damage/loss was outside of the carrier’s control.

Get All-Risk Shipping Insurance to Cover Your Potential Loss

You wouldn’t leave your building unlocked all night long and cross your fingers against theft or damage. Don’t leave your valuable products unprotected either. Contact the team at Amware  to find out how you can get covered by All-Risk Shipping Insurance.

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