Declared Value
Also known as: Declared Value Coverage, Excess Value, Extended Liability
Definition
Declared value is stating what your shipment is worth and paying extra for the carrier to assume higher liability. It’s not insurance—it just increases the cap on what you can recover from the carrier.
How Declared Value Works
- Standard liability is limited (e.g., $100 for parcel)
- You declare actual value ($1,500)
- Pay additional fee (e.g., $3 per $100 over $100)
- Carrier’s liability increases to declared amount
Declared Value vs. Insurance
| Declared Value | Freight Insurance |
|---|---|
| Through carrier | Third-party insurer |
| Must prove carrier at fault | All-risk coverage |
| Limited coverage scenarios | Comprehensive |
| Simple to add | Separate purchase |
| Carrier controls claims | Independent claims |
Declared Value Costs
UPS/FedEx example:
- First $100: Included
- $100-$300: ~$3.00
- Each additional $100: ~$1.00-$1.50
LTL freight:
- Per $100 of declared value
- Rates vary by carrier
When to Use Declared Value
Good for:
- Moderate value shipments
- Carrier damage more likely than theft
- Simple claim scenarios
Consider insurance for:
- High-value goods
- Theft-prone items
- Complex supply chains
- International shipping
Important Limitations
- Must prove carrier negligence
- Packaging must be adequate
- Some items excluded (jewelry, artwork, etc.)
- Doesn’t cover all loss types
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