Taking a Closer Look at LTL Freight Coverage

LTL Freight

Shipping goods to vendors and customers is a major part of operating a successful business. You need to make sure that the shipping process is done carefully, quickly, and at a reasonable cost. Many small to medium businesses benefit from LTL, or less than truckload, freight shipping.

This shipping method is perfect for those that ship smaller amounts of goods at a time. You can still take advantage of professional services that have the expertise and required truck insurance without paying extra.

LTL Freight and What You Should Know

LTL freight is a fantastic solution for any business operation that frequently sends shipments that are larger than individual parcels, but not enough to fill an entire truck. With LTL shipping, you can have your goods picked up and delivered by a professional truck service without needing to cover the cost of unused cargo space. This saves you a lot of money. Using an LTL truck carrier can also benefit your business by getting your shipment to the intended destination more quickly.

Why Do You Need Cargo Coverage?

Every time that you package and ship something, there is a possibility of loss or damage. No matter how carefully you prepare and package items for shipping or how much caution the truck driver uses on the road and while handling cargo, accidents can happen. This is why it’s essential to carry insurance to cover the financial risk of product damage.

The main purpose of this type of coverage is to protect the shippers from sustaining a heavy financial loss if part or all of the cargo goes missing or damaged. The insurance policy will pay out the amount that you are insured for in the event of:

  • Vehicle accident
  • Theft
  • Natural disaster or Fire
  • Shortage
  • Refrigeration Breakdown

Other scenarios may apply, depending upon your coverage.

Most Common Claims Made by Shippers

Claims filed by shippers who experienced some form of financial loss during the shipment process are actually quite common. Most of those claims fall into one of these main categories:

  • Damage – The most common type of complaint is a shipment of products that arrives damaged. Having a few items sustain a bit of damage is expected and can be acceptable, but widespread or heavy damage is cause for filing a claim.
  • Loss – When a shipment is picked up but lost somewhere in transit instead of successfully reaching the recipient, this is a loss claim.
  • Shortage – On occasion, a delivery contains only part of the original order. If this happens, a shipper can file a complaint about the shortage.
  • Concealed – When damaged or lost products are not discovered until the recipient has signed for and accepted the delivery and the driver has departed, this falls under a concealed claim.
  • Refused – Sometimes at the time of delivery, the recipient notices a heavy amount of damage to the delivery, the wrong items were shipped, or it could even have arrived late. In these instances, the recipient may refuse to accept the cargo, and the carrier must return the delivery to the shipper.

The types of goods shipped every day vary widely in value. A single truck shipment could be worth tens of thousands of dollars. The risk of such a substantial financial hit is reason enough for shippers to be aware of the benefits of insurance and purchase adequate policies.

Can You Track LTL Freight?

One of the biggest benefits of sending your shipments with a reputable carrier is that you can track your order. Check-in at any time to discover the location and predicted delivery of your shipment from the time of pick up until delivery drop off and completion with any stops that are made in between.

The opportunity to check on your shipment can be very useful for shippers. You may be wondering where the delivery is or need to field calls from a concerned vendor who is awaiting delivery. With tracking access, you can determine if there has been a delay due to weather or a traffic accident. Having access to this information will improve your customer service and your own ability to make better plans.

Cargo Insurance

Truck liability insurance doesn’t cover the goods that the vehicle carries. Shippers should purchase additional cargo coverage to protect themselves from potential financial loss.

Freight coverage has limited liability and restricts the claim amount depending upon the carrier’s liability limits. This may depend on the weight of the shipment instead of the cost of the goods. Fees for freight coverage can be included in the cost of shipping with a carrier. If a shipper files a claim, they may still experience a partial financial loss even after receiving compensation through the carriers coverage.

Another option is for the shipper to purchase their own cargo coverage. The shipper’s policy will be independent of the carrier and can give full compensation for the entire value of the shipment. LTL cargo coverage is very useful since many carrier liability insurance claims are denied for several reasons. You will be responsible for paying a monthly premium for this coverage, but the peace of mind you will gain is well worth it.

Consider your options carefully to make the right decision for your business needs. Uses LTL freight shipping is a highly convenient and reliable method of delivering your goods, but it never hurts to prepare for all eventualities.

About Western Truck Insurance Services

Western Truck Insurance Services is a commercial truck insurance agency with roots dating back to 1954. We have evolved into a highly respected, professionally managed, truck and transportation insurance brokerage. The hallmark of our organization is our desire to provide unparalleled service. We go way beyond what you expect to receive from an insurance brokerage. Equipped with state of the art automation, Western Truck Insurance can provide you with lightning fast truck insurance quotes, customer service, Insurance certificates, and coverage changes. Contact us today at (800) 937-8785 to learn more!