Weight, accessorials and the last mile · What is covered when a parcel is lost
Shipping insurance vs carrier liability
Carrier liability is limited by the tariff; declared value or separate cargo insurance can cover more, subject to exclusions.
Key facts
| Carrier liability | Limited by the carrier's terms, often a fixed amount per parcel |
|---|---|
| Declared value | Additional coverage purchased from the carrier for a fee |
| Cargo insurance | A separate policy that can cover broader risks |
| Exclusions | Improper packing, prohibited goods and some destinations may be excluded |
| Claims | Need proof of value, photos, tracking and a timely filing |
| Who is insured | Check whether the seller, buyer or both have an insurable interest |
| Official source | Carrier terms and the insurance policy wording |
The default amount is usually small
Carrier liability is designed for transport risk, not for the full retail value of every parcel. If the item is expensive, the default amount may not cover the loss.
Decide who carries the risk under the Incoterm and who buys the cover. A policy that names the wrong insured party can complicate the claim.
Claims fail on documentation
Insurers ask for the invoice, proof of value, tracking, photos of the packaging and damage, and a police or carrier report where required. A claim filed late or without the packaging evidence can be rejected.
Keep a claim checklist and train the warehouse to photograph high-value parcels before sealing.
Frequently asked questions
Does tracking prove the parcel was delivered?
It is evidence, but a delivery scan may not resolve a dispute about damage or a missing item. Insurance terms decide what proof is required.
Is declared value the same as insurance?
Declared value is coverage purchased through the carrier. Cargo insurance is a separate policy and may cover different risks and exclusions.
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