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When it comes to setting up a freight shipment, insurance is almost always an after thought. It is one of those misconceptions that most shippers seem to think they have full coverage. How costly a mistake this can be. Unfortunately, once the freight is damaged it is too late to insure the shipment.

It blows me away when clients call me to inform me that they received damaged merchandise and expect our company to reimburse them in full. The amount of frustration rises when I inform them that unless they purchased freight insurance then we are only liable for the maximum liability as per the terms and conditions of our waybill.

Here is some advice for all shippers before they set up their next shipment with a freight carrier or freight logistics company.

Do you have freight insurance? Check with your insurance provider to confirm if you have freight insurance coverage and if not, the cost. If you do not have freight insurance coverage, then your freight shipping company or a freight insurance company can easily provide it for you on a shipment per shipment basis.

What is maximum liability in the case of damage or loss? Get blank copies of your freight carrier’s waybills and read them carefully to ensure that you are comfortable with their liability terms and conditions.

What do I do if I experience damage or loss with my shipment? Contact your freight carrier or shipping company immediately in writing. All damage must be noted on the delivery receipt. If your freight shipper does not respond do not give up, it might take a while. Your freight carrier should advise the next steps to process your claim.

Am I responsible for payment of freight charges, even if my shipment incurs damage? You should be very clear that damage or loss incurred on a shipment does not absolve you of payment of freight charges. No freight carrier on earth is going to settle your claim unless you have paid the freight charges. The majority of freight carriers carry a maximum liability of only $0.10/lb - $0.50/lb. That means for a shipment of 1,000 lbs you will only be getting around $100.00 to $500.00 - and that is if your freight carrier takes the blame and agrees to honor your claim.

It is very inexpensive to insure a shipment that if damaged could cost you clients and money. Be proactive and insure your freight. Find out what the maximum liability and terms and conditions in the case of a damage or loss. It won't be easy, so get ready.