Understanding Freight Insurance


You’ve packaged your freight shipment, selected the right carrier, and printed your shipping documents. But, have you covered all your bases? Although correct planning and packaging can cut down on potential damages – things happen. When they do it’s best to be covered.

Freight damage and loss is a reality of shipping. This doesn’t mean that your shipments will be damaged but it’s best to be prepared. Carrier liability coverage and freight insurance can be complicated, and each carrier has different liability policies. Here’s everything you need to know before buying freight insurance.

Every freight shipment comes with limited liability coverage. This amount varies based on your NMFC/Freight class and the Carrier that you choose. It is either a flat rate policy or an amount that adjusts based on the weight of the item that you’re shipping. It does not necessarily reflect the actual value of the item that’s being shipped and sometimes will only pay out $0.10 per pound. This means that if you are shipping an item that weighs 350 pounds you may only end up with a settlement of $35.00 – unless you purchase additional insurance.

The easiest insurance policy is following best practices for freight packing. For extra fragile shipments, consider wrapping your item in paper and surrounding it with bubble wrap and/or packing peanuts in its box. Then wrap that box in bubble wrap and box it again. The extra protection will go a long way. You can’t control what happens to your item during shipping, but you can do everything possible to protect it on the front end.

Our freight insurance policies can be customized based on your individual needs and we can offer you an affordable policy that will mitigate potentially large financial losses in the event a loss or damage occurs. Our insurance policies are what is known as shippers interest insurance. This means that the full value of your freight is covered no matter what other than an act of God. These policies are extremely reasonably priced and offer peace of mind. Make sure you have correctly described the item(s) being transported. The more information that you provide us with, the more accurately we can quote your policy. You must document and communicate the value of the item being shipped when getting your quote.

If you are shipping large partials or truck load shipments vs. LTL than read the carriers policy carefully. There may be adequate coverage with a deductible. It may also be a policy that only covers a small value of the shipment as mentioned above. When you ship with Jameson Logistics, you will have access to a list of all our network Carriers and what each of them are willing to pay out for damage claims. We strive to educate and protect our customers.

If you have any questions or would like to get an insurance policy added to your freight shipping quote, feel free to contact us at Jameson Logistics. We are here to help! Call (800) 741-5043 or email info@jamesonlogistics.com.