What is the difference between liability per pound and liability per package and how can you make sure your goods are covered in the even of a claim?
When a shipper sends out a single order of 10 cartons that each weigh 20 lbs. for a total weight of 200 lbs. and the carriers standard liability is $10.00 per lb. you would expect to receive coverage in the amount of $2,000.
10 ctns x 20 lbs = 200 lbs x $10 lb = $2000
That would only apply if the entire shipment was lost or destroyed in its entirely. What actually is covered is $10 lb per PACKAGE. Suppose that one carton has the more valuable products in it such as electrical componets worth $500. If that is the only box lost, then you would receive $10 lb x 20 lb carton or $200 from the carrier. You would be short $300 on your valuation.
In order to ensure that you get paid full coverage, DTS offers supplemental insurance for purchase, to cover the entire shipment, regardless of the value or weight in individual boxes. Therefore when you have a shipment, and a large part of the value is in a small amount of the cartons, ask for supplemental insurance to protect your goods in transit.
When you have a question regarding insured coverage, don’t ever assume you’re covered……pick up the phone and call your Sales Consultant at DTS or our Operations Team as they are able to determine the best course of action to protect your valuable goods.
When it comes to logistics, ShipTMS is an industry leader. Regardless of the type of move you have (Air Freight, Volume, Project Oriented Logistics, International Small Parcel) ShipTMS has a range of solutions that will meet or exceed your needs. For over 14 years we have been helping our clients achieve their corporate goals – isn’t it time you made the call and see what can do for you? Call your Sales Consultant or call us directly at 507-407-4418 to see how we can help you meet your companies objectives. You can also email us at email@example.com