Lost or damaged freight can cause a huge headache and disruption in your business. Safety is priority one at Calex ISCS because we care about out drivers and their wellbeing. We also care about our clients and ensuring that their products get from point A to point B, on time and in perfect shape using our transportation services.
However, sometimes things happen beyond our control that may cause a shipment to become damaged or lost. Knowing what is covered by carrier liability and what is covered by freight insurance is crucial, as it will directly impact the outcome of the claim you make.
What should you do if your freight becomes lost or damaged?
If you suspect that a shipment has been damaged or lost, the first thing you should do is determine the extent of the damage that occurred. Carefully inspect the freight immediately upon arrival and document any damages you may find. Documentation is critical in making a claim, so the more the better (pictures are recommended, if possible). It’s important to also note the word “damaged” on the bill of lading to ensure the condition is known at the time of accepting the freight. Do not refuse the shipment or discard any damaged product or packaging as this may result in a denied claim or reduced payout.
Finding what’s covered and what’s not.
To understand what is covered and what is not, you must understand the difference between carrier liability and freight insurance. Both are forms of liability coverage, however, with carrier liability, your refund is limited, has several exclusions, and requires the carrier to be found liable for the loss or damage. In order for a carrier to be found liable, you must be able to prove that the damage done was a result of carrier negligence during transportation services. Along with this, the damaged or lost freight must have been properly packaged prior to the carrier picking it up, and there must be a signed delivery receipt on file.
Freight insurance does not require that you prove that the carrier was at fault, just that the damage or loss occurred during transportation services. Additionally, freight insurance oftentimes will cover the entire value of the shipment.
When to make a claim?
Carriers should be notified of any claim as soon as possible. However, if the proof of delivery is noted, you have up to nine months from the date of delivery to file a claim. How long it will take for your claim to be resolved depends on if it falls under carrier liability or freight insurance.
If your claim is covered by freight insurance, it is typically resolved within 45 – 60 days. If your claim falls under carrier liability, it can take more time, as carriers have 30 days to acknowledge the claim, and then an additional 120 days to resolve the claim.
How Calex ISCS can help protect your shipment
Lost or damaged freight can have serious repercussions for some businesses. For this reason, it is important for companies to do everything in their power to reduce the probability of their shipments being lost or damaged when using transportation services.
Through effective logistics management, we can keep your goods flowing smoothly between your company, our warehouses, and the final destination. More importantly, we can do it while keeping our drivers and your products as safe as possible. By putting all of our efforts into improving safety on the road, we are, in fact, improving the efficiency of your supply chain.
By adhering to our road safety protocols, accidents including damaged or lost shipments can be minimized. While we do realize that some accidents simply cannot be avoided, we do everything in our power to do the right thing each and every day. Our knowledgeable team is here to help you navigate the way, should something unforeseen happen to your shipment, resulting in the need to file a claim.