All Risk Cargo Insurance
Lowboy Trailers in Lake Orion, Michigan
There is no better coverage for valuable freight shipments than all risk cargo insurance.
What is All Risk Coverage?
All risk cargo insurance is the most extensive form of coverage to insure approved cargo against loss or damage by any physical, external cause including partial damage, theft, and catastrophe.
Having the correct level of cargo insurance coverage is an indispensable part of shipping cargo domestically and around the world. All cargo shippers should verify that the carrier or the logistics company that they are hiring to handle their shipments offer insurance and they understand what type of coverage they offer.
What is the difference between Carrier Limited Liability and All Risk coverage?
| All Risk Coverage | Carrier Liability Coverage | |
|---|---|---|
| Provides door-to-door protection | Yes | No |
| Pays regardless of whether the transportation provider’s negligence is proven to have caused the loss | Yes | No |
| Pays for losses occurring outside of the carrier’s control | Yes | No |
| Pays shipper for the full invoice value of cargo lost or damage plus freight and associated costs | Yes | No |
| Can pay for expediting replacement goods | Yes | No |
| Deductible | Yes | No |
The maximum amount of coverage that the TForce Worldwide All Risk Insurance will cover on a single shipment is $5,000,000. However, it is important to note that approval must be granted by the TForce Worldwide claims department on any shipment with a value of $100,000 or greater.
How to Properly Determine the Insured Value of a Shipment
Use the following formula to determine the proper all-risk insured value on any shipment.
(Sale Value + Freight Cost) x 1.10 = Total Insured Value
Here is an example of how to properly calculate the total value to be insured:
| $10,000.00 | Sale Value of the item(s) being shipped |
| $500.00 | Freight Costs (know your freight cost first and add it to the coverage) |
| $1,050.00 | 10% for Expenses 10% for Expenses (this covers handling, packaging, labor and another other expenses the customer incurred to prepare the item(s) for final sale; this will typically cover the deductible) |
| $11,550.00 | The Total Insured Value |
If you still have questions on freight insurance, please contact the cargo insurance experts at the SLS office.
We will help you get the coverage you need for any high value freight shipment.
Please contact us today at 888-757-6909 or use our quote form for a free all risk cargo insurance quote. Get a Quote