Carrier Liability
Also known as: Carrier's Liability, Limited Liability, Freight Liability
Definition
Carrier liability defines how much a shipping company will pay if your freight is lost or damaged. Crucially, it’s usually far less than your goods are worth—a gap many shippers don’t realize until filing a claim.
Carrier Liability Limits
| Mode | Typical Liability |
|---|---|
| LTL Trucking | $0.50-$25 per lb |
| Truckload | $100,000 max common |
| Parcel (UPS/FedEx) | $100 default |
| Ocean | $500 per package |
| Air | $9.07 per lb |
Example: The Liability Gap
$10,000 shipment weighing 500 lbs:
- Carrier liability at $2/lb: $1,000
- Your loss: $9,000
Liability vs. Insurance
| Carrier Liability | Freight Insurance |
|---|---|
| Limited by law/contract | Full value coverage |
| Must prove carrier fault | Broader coverage |
| Built into rate | Additional premium |
| Slow claims process | Faster settlement |
Increasing Protection
Declared value: Pay carrier for higher liability limit Freight insurance: Third-party full value coverage Released value: Accept lower liability for cheaper rates
Claim Requirements
To recover under carrier liability:
- Prove cargo was in good condition at pickup
- Show damage occurred during transit
- File claim within time limit (typically 9 months)
- Provide value documentation
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