What is Freight Liability?
As a standard practice in the freight industry, shipments are covered up to the carrier’s Limitation of Liability in the event of damage or loss. This limited liability coverage varies from carrier to carrier and depends on the shipment’s commodity type (often categorized by a Freight Class), whether or not the shipment is new or used, how the shipment is packaged, and other factors.
Since each carrier covers a standard dollar amount per pound of freight, the limited liability amount may or may not cover the entire manufacturer’s value of your shipment. For this reason, some shippers and consignees choose to purchase additional LTL freight insurance to protect their shipments beyond the standard amount covered by LTL carriers.