How does third party insurance work

how does third party insurance work

How Does 3rd Party Insurance Work for Freight?

Freight Insurance

When dealing with the freight industry, it is helpful to understand the responsibilities of:

* Your Logistics Company

* The Freight Carrier (The company that actually transports your shipment)

* And the Freight Insurance Company (Freight insurance provider)


FR8SHIPPER.COM is a logistics service and freight brokerage. As such, our function is to provide access to major freight carriers. In many respects our relationship is very similar to a travel agency, we help you find a carrier, but we are not the actual carrier. We never see nor handle your shipment. Your freight carrier is the company that did the actual pickup, transportation and delivery of your shipment. In the event of damage to your shipment, it is the responsibility of the carrier, their insurance company, and your private insurance to rectify the damages.


The freight company that actual transported your shipment is exclusively responsible for it's transportation and delivery. (See documentation provided at time of shipping)


In addition to the general limited liability coverage offered by all US freight carriers, some shippers will optionally purchase additional insurance coverage from a freight insurance provider.

Your freight insurance company is the

company that provides insurance coverage during transit with the freight carrier. This coverage is purchased independently from your logistics services and the freight carrier. If you have experienced loss or damage, you must contact your freight insurance company directly.


You may also discover that you already have some level of insurance already in place. Many personal and business insurance policies cover losses under "general loss" or "property in transit" coverage.

You may find your Credit Card company provides some level of coverage when you use their card.

You may choose to secure additional insurance from your personal, household or business insurance provider.

You may choose to purchase additional insurance directly from Freight Insurance Company

Or you may elect to move your freight using only the limited liability coverage provided by the freight carrier.

Neither you or the insurer are obligated. Insurance will not be enforced until:

You have reviewed, approved and returned the quote and the documentation that is being prepared for you

The insurance provider has also reviewed, approved your coverage, and sent you a Statement of Coverage.

Your Statement of Coverage has been returned to you and is in hand. You will not be able to process a claim without your Statement of Coverage.


Category: Insurance

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