It is important to understand and distinguish between freight liability and freight insurance for the sake of freight claims. In the vent that some of the goods you are transporting are lost or damaged, you would need to make a freight claim in order to recover the lost value. Bu just like in any other insurance case, you have to make sure that all the right steps are taken. The first step in understanding and managing freight claims better is ensuring that you have an understanding of what insurance and liability cover, and how much you need.
Freight Liability
If your cargo is covered by liability, you will have to file your claim within 9 months upon receiving the delivery. In the case that the delivery receipt has not been noted as damaged, you need to inform your carrier immediately. You also need to provide proof of value and proof of loss and be able to prove carrier negligence.
Freight Insurance
When your cargo is covered by insurance, you will also be required to provide proof of value and loss. In this case claims are usually paid within 30 days. However, under freight insurance though, you are not required to prove carrier negligence.
Freight claims and insurance can be daunting and very confusing. Many companies therefore get a freight forwarding software like the one we offer to handle claims and such. Either way, being able to distinguish between freight liability and insurance before even shipping is of vital importance.
