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Regulations Regarding Freight Liability Insurance

Regulations Regarding Freight Liability Insurance

The laws surrounding freight liability during delivery can be confusing, especially for the novice shipping company. However, unless alternate arrangements have been made, the shipping company can generally assume that it is considered responsible for the cargo while it is in transit to its final destination. As you probably well know, a lot of things can happen during delivery, which is why it is important to fill out a Bailee insurance application for a freight liability policy before making any major deliveries.

Protecting Your Cargo

Whether it is being delivered by plane, sea or ground transport, freight cargo is at the mercy of the elements and operators of other vessels. Even if their employees are not at fault, a transportation company may be on the hook for the value of the cargo if it is lost, stolen or damage. Adequate insurance is essential for providing coverage for all types of cargo.

Who Needs Coverage?

Nearly all transportation companies that act as a courier or third party shipping company need at least some level of freight liability coverage. The only companies that may be exempt from this are ones that include riders in their standard business contracts waiving coverage or those that require the company for whom they are providing shipping services to cover the liability costs.

To find out more and start getting the coverage you need, start your Bailee insurance application today.