Claims, Liabilities and Risks

When cargo is put into your vehicle and the bill of lading is signed, you are solely responsible and liable for the shipment. If the load is damaged, or is rejected for any reasonable reason, or if it is stolen in route, the driver will be responsible for the damaged, rejected, or undelivered load. Because it was in the driver's custody as the carrier, either the owner of the trucking firm or the owner-operator of the vehicle will be held liable for the cargo.

A claim may be lodged against the carrier even if the cargo was delivered in excellent condition with a clean bill of lading, and it is the carrier's job to assess and react in writing in at least 30 days or risk being held accountable for the claim. This is why it is in the carriers' best interests to record each stage of the process and gather as much evidence as possible in order to protect yourself and your drivers from fraudulent claims.

Improper cargo securement, trucking accidents, in route damage, and theft are the primary causes of cargo loss and responsibility claims.

Accidents create delays, may render the power unit inoperable, and can result in catastrophic damage to the vehicle and its cargo. In any event, if the cargo is not destroyed, it will be delayed, and the fact that it was involved in an accident may result in the commodities being rejected merely because the receiving agency may consider the likelihood of undiscovered damage and deny the shipment.

A claim may be filed if the cargo is damaged for any cause, including loading, unloading, and movement of a load that is not adequately secured. Crushed edges of cardboard boxes, other indicators of possible damage, broken or pierced shrink-wrap, or evidence of water damage or other fluid leaks are all legitimate grounds for a consignment to be refused. Spoilage or late delivery of any perishable items, where prompt delivery and/or adequate temperature management are required to assure freshness or suitability for the customer's company, are other examples of damage.

Cargo theft is reported to be a $15-$30 billion issue in the United States each year. Cargo liability insurance will cover the loss of a cargo due to theft if the carrier has taken all reasonable precautions to avoid the theft. It's worth noting that some of the theft occurs in intermediary sites like warehouses and transfer stations rather than immediately from the carrying vehicle. Trucks are nevertheless vulnerable to break-ins, hijackings, and theft.

Cargo liability insurance protects the value of these cargo's and prevents carriers and drivers with their own authority from being held accountable for cargo loss or damage. To be clear, this is cargo liability insurance, which protects you against the loss or damage of the goods you're transporting. This is not standard accident liability insurance, which covers injuries to third parties as well as loss or damage to the injured person's property—it does not cover the loss of the cargo's value.

The most prevalent causes of freight damage include improper securement or other damage during loading, transit, and unloading. Cargo that isn't adequately secured with enough or defective mechanisms, or protective equipment like edge guards, dunnage, blankets, or tarps. When loading and unloading a vehicle, items not securely secured on pallets, broken pallets, or incorrectly stacked stuff might easily slide off, particularly if personnel are in a hurry.

There are a variety of reasons why cargo might be damaged or spoilt, as well as a variety of methods that damage can occur. Packaging may be a problem, particularly for one-of-a-kind or uniquely-shaped goods for which bespoke packaging does not blend in with other things. Protecting these one-of-a-kind goods requires extra caution from packers and carriers. This is why it is the driver's obligation to record each stage of the process and inspect the cargo being loaded.