CARM: What all importers need to know about CARM

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Cargo Insurance – Limited Liability


Carrier liability is the term used in the shipping industry to describe that a carrier can be held responsible for shipment losses, damages and delays.  However, it is important to note that carriers have limited liability on the carriage of goods.  While every booked freight shipment comes with limited liability coverage, the amount of coverage is determined by the carrier and it typically covers a certain dollar amount per pound or kg.  In the majority of situations, the included liability coverage will be less than the value of the shipped goods.

To make a liability claim against a carrier, the carrier must be proven to be 100% at fault for the damaged or lost freight.  In most cases it is difficult to prove 100% fault, meaning the claim will be denied by the carrier.

The only way to fully protect yourself from the inherent risks associated with shipping is to ensure your shipment is covered by cargo insurance. 

Universal Logistics can provide cargo insurance for all forms of shipments to ensure your interests are fully protected.

For more information, contact David Lychek, Manager – Ocean & Air Services.

Quick Tip #35
By controlling your freight, you can choose the best routing and service level for your business

Time critical? If saving time saves you money, ensure your freight is moving on the fastest route available.

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