When you’re shipping freight, risk is part of the equation. Accidents happen. Weather strikes. Packages get lost, damaged, or delayed. That’s where freight insurance steps in - to keep your business protected when the unexpected hits.
In this guide, we are breaking down the essentials of freight insurance so you can ship with confidence.
What Is Freight Insurance?
Freight insurance is a safety net. It covers loss, damage, or theft of goods while they’re in transit - whether by land, sea, or air. Depending on the policy, it can also help you recover costs from delays or mishandling.
Why Freight Insurance Matters
- Protects Your Cargo from events out of your control, like accidents or bad weather.
- Preserves Your Reputation by helping you recover quickly if something goes wrong.
- Meets Industry & Contractual Standards required by some partners or international shipments.
Types of Freight Insurance
Here’s a quick breakdown of common coverage options:
- Full Value Coverage (All-Risk): Covers most risks, including theft, fire, collision, and natural disasters. Your goods are insured for their full replacement value.
- Released Value Coverage: A basic, more affordable option - usually limited to a small amount per pound. Not ideal for high-value cargo.
- Carrier Liability: Automatically included by carriers, but often minimal and full of exclusions. Usually not enough on its own.
- Third-Party Insurance: Issued by an independent insurer, this can offer broader protection and faster claims service.
What’s Typically Not Covered?
Even the best insurance policies have exclusions. Common ones include:
- Improper packaging
- Acts of God (like earthquakes, tornados or floods)
- Inherent product defects
- Government actions (like customs seizures)
- War or terrorism-related damage
Always read the fine print to understand what is - and isn’t - protected.
Choosing the Right Policy
Ask yourself:
- What’s the value of your cargo?
- Is it fragile, perishable, or time-sensitive?
- How is it being shipped - domestic or international?
- Are there multiple carriers or border crossings involved?
Your answers will help determine how much coverage you really need.
Filing a Claim: Step-by-Step
If something goes wrong, here’s what to do:
- Notify your provider immediately after the loss or damage.
- Document everything - photos, tracking info, and proof of value.
- Fill out a claim form with all relevant details.
- Cooperate with any inspection or additional requests.
- Receive your compensation based on your coverage.
ProX Perspective
While ProX doesn’t issue insurance directly, we work with trusted partners and help ensure all documentation is ready to go. We also take preventive steps - from optimized packaging protocols to route planning - to reduce the need for claims in the first place.
Because protecting your freight starts long before it hits the road.
Have questions about coverage or shipping strategies? Talk to Us!
