Freight Claims 101: Knowing Your Carrier Liability Limits

There is no worse feeling in logistics than opening a trailer to find your high-value cargo crushed, wet, or missing. But the real shock often comes later, when you file a claim and the carrier offers you a fraction of the cargo's value. This is the reality of Carrier Liability Limits, and every shipper must understand them before the first pallet is loaded.

The Liability "Gotcha"

Unlike "Cargo Insurance," which covers the full value of the goods, "Carrier Liability" is limited by the carrier's tariff. In the LTL (Less-Than-Truckload) world, these limits are almost always tied to the Freight Class. For example, if you ship electronics (Class 125) but the carrier's limit for that class is $5.00 per pound, and your product is worth $50.00 per pound, you are automatically assuming 90% of the risk yourself.

Common Payout Caps:

• Used Goods: Often capped at just $0.10 or $0.50 per pound, regardless of the actual value.
• Max Payouts: Many carriers have a maximum payout per shipment (e.g., $100,000) regardless of the total value of the cargo.
• Act of God: Carriers are not liable for damages caused by extreme weather or other events outside their control.

The Burden of Proof

To win a freight claim, the burden of proof is on the shipper. You must prove the cargo was in good condition when it was picked up and damaged when it was delivered. This is why clear, high-resolution photos of every pallet before it leaves your dock are the most valuable documents in your claims file.

Don't be caught off guard by low payouts. Use our Freight Claim & Liability Estimator to compare your cargo value against standard carrier limits.