Whether you are the shipping company or the person getting the shipping service, understanding the transportation liability market can be an important part of making sure that your transactions run smoothly. However, there are a lot of myths about this topic that could cause problems with your business relationship or even legal problems down the line. Here are some of the myths to watch out for and be aware of.
The first myth is that the contracts made between the broker and the carrier will protect the shipper from liability. Although this may be true for some contracts, it isn’t always that case. Therefore, it is important that all parties review their contracts to know exactly what is included and who is responsible in the event that something happens to the cargo.
Another common myth is that having insurance means that you don’t have to worry about the potential for something to happen. Insurance can surely help with a lot of potential problems, but not all policies are created equal. For this reason, you want to know what you are covered for and prepare accordingly.
Understanding the myths in the transportation liability market is an important step to making sure that you will be covered in the event that something happens to the merchandise. Be sure to look into the adequate insurance policies for your business needs.