Freight Insurance in the U.S. — What Every Shipper Should Know
Freight insurance is essential for protecting your cargo during transit. While carriers have limited liability, dedicated insurance gives you peace of mind and financial security.
📦 What Is Freight Insurance?
Freight insurance is a policy that covers the value of goods during shipment. It protects against:
- Theft
- Damage
- Loss due to accidents or natural events
🚛 Carrier Liability vs. Freight Insurance
Coverage Type | Key Details |
|---|---|
Carrier Liability | Limited coverage based on weight and freight class |
Freight Insurance | Covers full value of shipment, regardless of cause of loss |
Important: Carrier liability in the U.S. is often capped at $0.50–$2.00 per pound unless additional insurance is purchased.
🔍 What Does It Cover?
- Full or partial cargo loss
- Physical damage
- Acts of God (floods, storms, etc.)
- Cargo theft
- Warehouse loss during stopovers
⚠️ What It Doesn’t Cover
- Improper packaging
- Inherent vice (self-deteriorating items)
- Delays (non-financial loss)
💰 How Much Does It Cost?
Freight insurance typically costs between 0.5% and 2% of the total cargo value. Factors include:
- Commodity type
- Mode of transport (truck, rail, air)
- Origin and destination
🧾 How to Get Freight Insurance
- Provide the declared value of goods
- Submit a description of the items and packaging
- Pay the premium with your shipment booking
✅ Why Choose Cargo1?
We help clients secure comprehensive freight insurance for any mode of transport. Our team verifies policies and ensures claims are handled efficiently.
