Carrier liability and cargo insurance are not the same thing — and confusing them is how shippers end up recovering pennies on the dollar after a loss. Carrier liability is the legal responsibility a trucking or ocean carrier has for freight in its care, and it is limited by law and tariff. Cargo insurance is a policy you buy that pays the actual value of your goods regardless of fault. If your freight is worth more than a few dollars per pound, you need to understand where one ends and the other begins.
What carrier liability actually covers
In U.S. trucking, motor carriers are liable for loss or damage under the Carmack Amendment, but the amount is capped by the carrier’s tariff and the freight’s released value. LTL carriers commonly limit liability by freight class — often somewhere between $0.25 and $25 per pound depending on class and carrier — and used goods may be covered at only $0.10 per pound. Ocean carriers are even more limited: under COGSA, liability caps at $500 per package unless a higher value is declared. And carriers can deny claims entirely for excluded causes like acts of God, inherent vice, or shipper packaging errors.
What cargo insurance covers
All-risk cargo insurance pays the insured value of the goods — typically invoice value plus freight plus 10% — for physical loss or damage from external causes, without needing to prove the carrier was negligent. It covers scenarios carrier liability never reaches: general average contributions on ocean voyages, theft from a parked trailer where the carrier is not at fault, or damage capped far below actual value. Premiums are modest, often fractions of a percent of insured value, which is cheap next to writing off a $60,000 pallet load recovered at $0.25 per pound.
How claims differ
Carrier liability claims
You must file in writing within the deadline (9 months for most trucking claims), document the loss with photos and the delivery receipt, prove the goods were tendered in good condition, and negotiate against the carrier’s limits and exclusions. Concealed damage discovered after signing clean makes it harder — our guide to OS&D (over, short, and damaged) covers the receiving discipline that protects your claim.
Insurance claims
You claim against your own policy, the insurer pays per the policy terms, and the insurer then pursues the carrier through subrogation. Faster, and your recovery does not depend on the carrier’s tariff.
What Miami shippers should do
Know the released value on every quote you accept — a cheap LTL rate at a low released value is not cheap if the load is damaged. Declare high-value freight honestly or insure it separately. For international moves, buy all-risk marine cargo cover rather than relying on the $500-per-package COGSA world. And document condition at pickup and delivery; photos cost nothing and win claims.
Frequently asked questions
Is carrier liability enough for high-value freight?
Usually not. Carrier liability is capped by tariff, released value, and statutes like COGSA, so recovery on high-value cargo is often far below actual value. Separate all-risk cargo insurance is the standard protection for goods worth more than the applicable per-pound or per-package limits.
How long do I have to file a freight damage claim?
For U.S. motor carriers, claims generally must be filed in writing within nine months of delivery, and concealed damage should be reported as soon as discovered, ideally within five days. Ocean and air claims have shorter notice windows, so check the bill of lading terms immediately after a loss.
Does cargo insurance cover delays?
Standard cargo policies cover physical loss or damage, not financial losses from late delivery. Delay coverage exists but must be purchased specifically, and carrier liability for delay is also very limited.
Go Freight is a fully insured, asset-based carrier — FMCSA authority, BBB accredited, moving freight with 100+ owned trucks across South Florida. Get a quote or call (786) 445-0150.