When you’re involved in the industry of transporting freight, it’s important to know the differences in insurance should you have to make a claim. Do you know what freight liability insurance is and how it differs from general freight insurance? Here are the main differences.
Liability coverage is applied to every freight shipment automatically. How much coverage is included is chosen by the carrier and based on the commodity being transported up to a certain monetary sum per pound of freight. The coverage doesn’t usually equal the full value of the goods and is worthless money if you’re pulling used merchandise. You should keep track of how much coverage is available so you’ll know if you need general freight insurance.
General freight insurance is added after freight liability insurance to cover what isn’t included in the original policy. This can make up the difference between the amount of coverage and the value of the goods. It can also cover the cost of shipping. With liability, you’re only covered if the carrier is negligent. Freight insurance covers you in a variety of other situations where you wouldn’t get your money back without the added policy.
If you transport goods on a regular basis, it’s a good idea to have freight insurance on top of liability insurance to cover a variety of mishaps. By knowing the difference, you’re off to a good start.