In the freight world, even the most reliable carriers and careful packaging can’t guarantee that every shipment will arrive in perfect condition. Damage, theft, and delays are all part of logistics reality. That’s why freight insurance isn’t just an add-on, it’s a safeguard for your business, protecting your bottom line and reputation.
Through platforms like ours, shippers can compare rates, schedule deliveries, and include freight insurance directly when booking a shipment, ensuring protection before a single pallet leaves the dock.
What Is Freight Insurance and Why It Matters
Freight insurance covers the full value of your shipment against loss, damage, or theft while in transit, extending far beyond standard carrier liability.
Under carrier liability, compensation is typically limited to a small amount per pound, which might only cover a fraction of your product’s worth. In contrast, freight insurance ensures you can recover the true commercial value of your goods if something goes wrong.
You can easily add coverage when booking your shipment, giving you peace of mind without the hassle of negotiating separate policies.
Common Types of Freight Claims
Understanding the most frequent freight insurance claims helps identify where risks occur and how to prevent them.
Visible Damage: This occurs when the shipment arrives with crushed boxes, torn packaging, or visible dents. Since damage is apparent at delivery, it’s crucial that the receiver marks it on the Proof of Delivery for quick claim approval.
Shortage or Partial Loss: This happens when only part of the shipment arrives. Accurate documentation on the Bill of Lading (BOL) is essential for validating this type of claim.
Concealed Damage: Products may appear intact externally but are later found defective upon unpacking or installation. Following proper claim filing timelines is critical for these situations.
Total Loss or Theft: The most severe scenario occurs when the shipment is entirely lost or stolen during transit. Comprehensive coverage ensures businesses can recover financially and restock without major disruption.
How to File a Freight Insurance Claim
Knowing how to act when issues arise can make or break your claim. According to GoShip’s freight claim process, the key is documentation and timing.
Inspect the Shipment Upon Delivery: Always inspect before signing the Proof of Delivery (POD). If there’s visible damage, write detailed notes and take photos immediately.
Collect Documentation: You’ll need the Bill of Lading (BOL), Proof of Delivery (POD), commercial invoice and packing list, photos of damaged goods and packaging, repair or replacement estimates, and notice of damage sent to the carrier and insurer. Each document validates your claim and supports the investigation process.
File the Claim Promptly: Freight insurance claims typically must be filed within 9 months of delivery, while concealed damages often have shorter notice periods. Filing through an online partner portal, like the one GoShip provides via Falvey Insurance, helps expedite review and resolution.
Best Practices for Protecting Your Shipments
While insurance protects you after an incident, prevention starts before pickup. Here are actionable strategies drawn from GoShip’s LTL shipping best practices.
Documentation is critical. Photograph your freight before pickup to prove condition at origin. Train warehouse teams to properly note damage on delivery receipts. Maintain organized records of all shipping documents.
Proper packaging matters. Use sturdy, undamaged pallets. Secure fragile items with edge protectors and shrink wrap. Clearly label all sides with handling instructions.
Choose wisely. Partner with reliable carriers that maintain high performance scores. Compare coverage options when booking to ensure adequate protection.
Consider the cost-benefit reality. Insurance premiums are typically far less than the cost of replacing damaged goods or losing customer trust due to delivery problems.
The Role of Freight Insurance in Business Continuity
In today’s competitive supply chain, even one damaged shipment can impact customer trust and revenue. Freight insurance doesn’t just cover losses, it ensures business continuity, especially for industries moving high-value, time-sensitive, or seasonal goods.
With digital tools from our online freight platform, you can compare carrier options, book insured shipments, and track your deliveries in real time, all from one dashboard.Ready to protect your next shipment? Get instant quotes with integrated insurance coverage options.