Supplemental insurance is a crucial aspect of shipping LTL loads, especially when it comes to high-value or used commodities like machinery. Knichel Logistics can provide supplemental insurance coverage for any LTL load that is in need of it!
While LTL carriers typically provide a standard liability coverage of $20 per pound for a shipment, it's important to note that this coverage can vary from carrier to carrier. It's also vital to understand that this liability coverage represents the best-case scenario, and it does not guarantee that the carrier will pay out at that level in the event of a claim.
When it comes to shipping high-value or used commodities, relying solely on the carrier's liability coverage can be risky. For instance, used freight is often covered at a meager rate of $1 per pound, or even less. This means that if you were to ship a used machine worth $20,000, the carrier would only cover the weight of the machine, which could be significantly less weight than 20,000 pounds. If this hypothetical machine were to be damaged in transit, liability insurance would leave you high and dry. In such cases, it is wise to opt for supplemental insurance to ensure that your valuable cargo is adequately protected.
A qualified multimodal provider, such as Knichel Logistics, should have a logistics liability policy that includes contingent cargo insurance. Our contingent cargo insurance is designed to pay for cargo loss or damage, on a contingent basis, when the motor carrier’s insurance company fails to pay a valid claim. Because contingent cargo insurance follows the motor carrier liability insurance, the motor carrier is liable for cargo loss/damage. Contingent cargo insurance does not pay for cargo losses above the motor truck cargo limit of the motor carrier and will not pay loss above carrier’s liability.
By adding supplemental insurance, you can enjoy peace of mind knowing that your shipment is covered for its actual value, rather than just its weight. This additional coverage offers financial protection against potential loss or damage during transit, providing you with the necessary compensation to recover the full value of your goods.
Supplemental insurance acts as a safety net, filling the gaps left by the carrier's liability coverage. It safeguards your investment and ensures that you won't suffer significant financial losses if an unfortunate incident occurs during transport. Whether it's a high-value item or a used commodity, having the right insurance coverage is essential to protect your interests.
When it comes to shipping LTL loads, don't take any chances with inadequate liability coverage. Take the proactive step of adding supplemental insurance to your shipment, especially if you're dealing with valuable or used commodities. This way, you can rest assured knowing that your cargo is fully protected, and you won't have to bear the burden of potential losses alone. Safeguard your investment and ship with confidence by opting for supplemental insurance for your LTL loads.