How to Mitigate Risk of Full Truckload Shipping: Freight/Cargo Insurance!

Author: Adam Robinson

Believe it or not, product in the care of a driver does not necessarily place all liability for freight in the hands of the carrier. There are exemptions to liability within the Carmack Amendment, and even when everything is correct on paper and goes smoothly at the place of origin, Mother Nature may have other plans. Shippers need a way to mitigate risk of full truckload shipping, regardless of what promises a driver makes in casual conversation.

The Problem: Full Truckload Carries Less Risk, So Shippers Forgo Cargo Insurance

Risk exists in all transportation modes, and failure to consider risk in full truckload shipping is a poor strategy that will result in loses. Some shippers operate under assumption, but assumption will not pay for damages.

As explained by Lisa Terry via Inbound Logistics, transportation liability grew more complex with economic growth and an increasing number of contracted drivers and carriers. Under federal transportation law, and the Carmack Amendments, carriers traditionally held liability for freight until delivery, with four specific exclusions, but individual contracts may make liabi

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