Freight Insurance and Profit Protection: Do You Need It?

You might think your shipments are fully protected, but standard carrier liability often leaves gaps that can be costly. When damage, loss, or theft happens in transit, relying on carrier coverage alone can leave you coming up short. Freight insurance adds a stronger safety net, protecting the true value of your goods and helping safeguard both your shipments and your profits — especially as volumes rise and cargo risks increase.

What Is Freight Insurance?

Freight insurance covers your shipment against damage, loss, or theft while in transit. Unlike carrier liability, which is legally required but limited, freight insurance is a separate policy designed to reimburse you closer to the shipment’s actual value.

Carrier liability works as a baseline, but it usually pays only pennies on the dollar if a claim arises — it’s not a full safety net. Think of freight insurance as an extra layer that truly protects what’s inside your trailers.

Why Does Freight Insurance Matter?

Shipping today comes with higher risks:

• Rising shipment volumes mean more opportunity for loss or damage

• Cargo theft is on the rise, especially for electronics, food, and pharmaceuticals

• Weather events are disrupting lanes more often

• High-value freight like industrial equipment, medical supplies, or oversized cargo needs extra protection

The stakes are simply too high to leave them under-insured.

Common Misconceptions About Freight Insurance

Many shippers underestimate the gap:

• “My carrier will pay for it.” Carrier liability is limited and does not cover the full declared value.

• “It’s too expensive.” Freight insurance usually costs pennies on the dollar compared to a total loss.

• “We’ve never had a claim before.” Until you do — and even one catastrophic loss can erase years of profits.

Real-World Examples

Examples of shipments that benefit from proactive insurance planning:

• high-value or time-sensitive cargo

• specialized or oversized freight

• goods requiring special permits or handling

• temperature-controlled products

These types of shipments carry higher stakes — planning ahead helps safeguard your investment and avoid financial strain if the unexpected happens.

How Accurate Supports You

At Accurate Logistics, we guide clients through their insurance options. We help you:

• declare the right shipment value

• understand what’s truly covered

• plan for high-risk lanes or time-sensitive freight

If you’d like to review your freight coverage options, our team is here to help. We can answer questions, offer recommendations, and help you plan the best protection for your shipments.