If you’re regularly shipping LTL you may find that Limited Liability Coverage doesn’t offer enough of a guarantee on damage or loss. Commonly, the maximum payout of a lost parcel or shipment is just $100. Unless you’re willing and able to financially absorb the cost of a missing or damaged shipment, you may want to consider all-risk shipping insurance.
Can You Afford a Maximum Payout of Only $100?
For your reference, here are a few common maximum payout limits under Limited Liability Shipping Coverage:
- Major Parcel Carriers – $100 per parcel
- Domestic Air Carriers – $0.50 per pound
- Ocean Carriers – $500 per container
- LTL (Less-than-Truck Load) Shipments – $0.25-$25 per pound with an average of around $0.50 per pound
- FTL (Full-Truck-Load) Shipments – $100,000 total
While these may seem like fair payouts, the problem is that they don’t cover high-value goods on LTL quantities or shipments with a value over $100k. More often than not, you’ll find that the Limited Liability Coverage doesn’t cover the cost of your shipment, which means you’re taking a huge financial risk with this limited coverage.
What if Your Claim is Denied?
Unless you’re able to prove, on paper, that the damage or loss of your shipment was due to negligence by the carrier, you may not qualify for reimbursement under Limited Liability Shipping Coverage. Regardless of proof, shippers aren’t covered at all under Limited Liability in the event of theft, product spoilage, other drivers on the road, or “acts of God.”
With All-Risk Shipping Insurance, you get door-to-door coverage, which means that if your shipment is lost at any time during the shipping process, you qualify for reimbursement. And you’ll be covered whether you can prove carrier negligence or not, and whether the loss or damage was within the carrier’s control or not.
How Much Can You Afford to Lose During the Claims Process?
If your claim takes 3 to 6 months, will your business be able to survive? This is a daunting and terrifying possibility for many businesses that rely on shipping services to keep their business afloat. Unfortunately, with Limited Liability Shipping Coverage even if you are able to prove carrier negligence and the full value of the shipment, the repayment processing time can be excruciatingly long.
On the other hand, All-Risk Shipping Insurance can have your claim paid back in as little as 7 to 10 days after the paperwork is filed. And since it’s not your responsibility to prove carrier negligence, the process is easy and convenient so you can get back to business fast.
Are you ready to stop relying on Limited Liability and start ensuring full coverage by All-Risk Shipping Insurance? Contact the team at Amware or download the whitepaper below for a quote now.