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freight insurance

Home » Freight 101 » freight insurance

What sort of freight insurance should I consider?

The type of freight insurance you need for your freight really depends highly on what are you shipping and how. In most cases insurance is an optional expense but it is available.   We recommend carefully checking your freight contract from the carrier and fully understanding everything before you agree.

In an LTL (Less Than Truckload) freight shipment the insurance is based on the NMFC Freight Class of the shipment, usually this is a set amount per pound of freight transported.

When it comes to OTR (Over the Road) shipment, most carriers provide $100,000 in cargo coverage (please check on this with your carrier or freight broker).  In addition, you can also purchase additional insurance for a load.

Depending of any case, keep in mind that companies like FedEx and UPS do have limitations on the amount of insurance that you can purchase for your freight items.   We recommend that you declare the value of your freight at the time of shipment and then supplement the insurance of the carrier if needed.   If you are shipping something worth over $500, you should ask your insurance company about purchasing additional insurance since FedEx doesn’t offer insurance.  UPS, in the case of freight like artwork, prohibits shipments of items of “unusual value” altogether.

Do you need to ship freight right now, need an expert to help?  Contact us, chat live or get a freight quote right now.

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