Peace of Mind With the Right Freight Insurance

Clark Logic takes pride in its spotless reputation for safe, on time delivery of billions of dollars of freight every year. But even the best of carriers occasionally experience some unavoidable damage or loss to freight from time to time. When this happens, it is essential that all parties are prepared with the proper cargo insurance.

With 45 years of logistics experience, Clark Logic ensures that our customers understand what insurance coverage is necessary before they ever need to make a claim. Here’s a brief rundown on some of the cargo insurance basics that every business should understand.

Primary Insurance vs Contingent Insurance

Lost or damaged goods may be covered under more than one policy – such as your carrier’s insurance and your freight broker’s insurance. The primary insurance is the insurance plan that the claim will be covered under first.

The contingent insurance comes into effect only if the primary insurance plan does not cover the damages. A freight broker or shipper will often carry contingent insurance in case the primary insurance has expired and/or doesn’t cover full value.

Liability Insurance vs Open Cargo Insurance

If your carrier is covered under liability insurance and your freight is damaged, your carrier’s insurance will cover whatever he is legally / contractually responsible for. Carrier’s liability insurance often contractually compensates on a price per pound, but this usually does not cover the true and full value of the damaged goods.

Open Cargo Insurance – also called Shipper’s Interest Insurance may be held by a carrier, freight broker, or by the shipper themselves. This type of policy covers the shipper, for the actual value of the lost or damaged goods.

A shipper should always understand if they are taking the risk of being paid a lower amount than the actual value of their goods in the event of a claim, by relying solely on the carrier’s liability insurance. And a shipper should always weigh the option of Shipper’s Interest Insurance if they are uncomfortable with the risk of having only the carriers Liability Insurance.

Total Loss, Basic Risk, & All Risk

Total Loss Coverage does not mean the same thing as “total coverage.” Total Loss Coverage will only cover you if your entire shipment is a total loss. In other words, it will not cover partial losses. The types of events that you are covered for vary by insurance provider and policy. This type of insurance is typically only used for low value cargo.

Basic Risk Coverage insurance will cover you for both partial and total losses of your shipment – but only if they are the result of one or more of the specific risks listed in your insurance policy. Coverage can vary greatly from policy to policy.

All Risk Cargo Insurance is the most comprehensive form of cargo insurance. This type of policy will cover you for any losses or damages from any external source – with only a few exception which will be stated in your policy.

If this sounds complicated – it is! Insuring your valuable cargo against loss or damage is one of the most important aspects of your transportation needs, and yet it is one that many carriers and shippers do not understand. At Clark Logic we have 45 years of logistics experience that include guaranteeing our customers’ goods are properly insured.

When you rely on Clark Logic every effort is exerted to ensure the safe and reliable delivery of your products. But when the unforeseen or unavoidable happens (severe weather, 3^rd party negligence, etc.) you are assured that Clark Logic will have discussed your insurance needs before you are every faced with a claim – so that you can ship with the confidence knowing your financial needs are protected.

Disclaimer: The information is for general reference only. This is not specific official legal or insurance advice. For official insurance advice relating to the shipment of your cargo, talk to a certified professional or call Clark Logic today.

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