The goods or merchandise in transit are prone to physical damage or loss, resulting in a huge financial setback. This is where Carriers’ liability insurance comes into the picture. Carrier’s liability insurance is specifically designed to cover the physical loss or damage to goods or merchandise while in transit. It is primarily responsible for paying off compensation For physical destruction or loss during a variety of scenarios such as:
- Momentary housing on or off the vehicle during transit
Carriers legal liability insurance depends on some conditions like:
- Loss or damage caused due to theft or criminal attack.
- Vehicle damage due to accident, fire, or explosion.
- Occurrence of accident or fire due to negligence of the insured.
Who requires a carrier’s liability insurance?
Any goods or merchandise carried through road, rail, sea, or air are prone to damage or loss, and you as a carrier are responsible for the same during the loading, unloading, or in transit. Whether you are a large-scale carrier or operate a small fleet, identifying the right Carrier’s liability insurance helps to safeguard your load and provides financial security.
A freight carrier’s legal liability is the extent to which the carrier is responsible for damage or loss of goods or merchandise in transit. However, there are certain limitations to be considered during any loss or damage. Check out below mentioned are some elements of carrier legal liability:
1. Burden of Proof
When the goods or property of a customer gets lost or damaged during transit, the owner of goods or merchandise must have proof and documentation while filing a claim for reimbursement from the carrier.
2. Limitation of liability
There are certain limitations regarding how the carrier has to pay, even if he is at fault. Transportation mode and entities like specific international conventions, treaties, along with domestic and international governing bodies, determine these limitations.
3. Exclusion of liability
In certain circumstances, damage or loss of goods does not fall inside the carrier’s liability. These instances may include the occurrence of natural calamities like floods or natural disasters.
Get a suitable carrier’s liability insurance to cover uninvited financial setbacks!