Our company, Diversified Transportation Services, gets calls each week from new clients around the country asking various forms of the same question. The question is typically like this:
"Why did my current carrier or 3PL not pay the full claim that I submitted?"
The answer is surprisingly very simple. Carriers have been for many years working to keep to keep costs, and thus have over time, reduced the Liability per pound based on the class of the LTL item being shipped.
While many shippers still believe in error that ALL LTL CARRIERS FULLY INSURE THE GOODS ON THE TRAILER, they are clearly wrong. Carriers are not doing this to avoid paying a claim, they are doing it because shippers want to keep costs down overall, and by having limits on the liability per pound, based on the actual LTL class of the goods, is one way to achieve what everyone wants --low priced, cost effective logistical options for LTL transportation.
Who has the responsibility to ensure the cargo on an LTL or Truckload carrier is properly insured?
The answer is---drum roll please........THE SHIPPER...... It is the shipper’s legal responsibility to ensure that the goods that they put on an LTL or Truckload carrier are properly insured.
So the question remains - "How does a shipper protect themselves and make sure, that in the event of a claim, that their goods are properly insured?
At the end of the day it is very simple---the shipper has the legal responsibility to ensure their goods are properly insured. At Diversified Transportation Services we work to meet our clients overall needs and have been for over 28 years. If you would like a free consultation on how DTS can drive down your logistics costs as well as help you on your insurance issues if you have any, feel free to reach out to us at firstname.lastname@example.org or call us at 310-521-1200
Michael Doyle - Vice President of Sales - Diversified Transportation Services
Whether you're a company looking to improve one facet of your supply chain, your entire supply chain, or simply looking for a transportation and logistics consultation, we can help.