LTL Common Carriers Insurance & liability

Carrier maximum liability

Carriers commonly set a maximum initial liability level by applying a maximum amount per pound and per package based on freight class. However, this amount is an absolute maximum and is typically reduced based on the actual, more detailed specifications of the freight. Also, the carrier's maximum liability applies only to the actual cost of the goods lost, damaged or destroyed. Please contact your LTL Cargo sales representative to review your cargo liability considerations and quote additional insurance if needed.

The carrier will not accept any liability for shipment delays, unless a guaranteed service and specific delivery time is agreed to by both parties and recorded on the bill of lading; in which case the carrier may accept liability for the cost of transportation only. Also, carrier liability will not cover any consequential damages like lost sales or stoppage of production.

Released values

Stating the released value of your goods on the bill of lading and accepting the associated protection tradeoffs can adjust your classification and get you lower rates. If you do not specifically note on the Bill of Lading a released value and your NMFC is dependent upon the value of your goods, the maximum carrier liability will be limited to the lowest dollar value per pound associated with the specific NMFC.

Notating the bill of lading with a released value is optional and only required if your NMFC is dependent upon it. Please contact your LTL Cargo sales representative if you have questions on whether or not your commodity is considered to be a released value item.

If your commodity is a released value item you should include the released value in the description field on the bill of lading. Example: Cellular Telephones, Released Value not exceeding $3.00 per lb NMFC 62820.01

Restricted and Prohibited Commodities

Common carriers assign "restricted" or "prohibited" categories to many commodities, primarily because these commodities do not travel well in a mixed-freight environment.

The following are some common examples of "restricted" or "prohibited" articles. The maximum liability on these types of items is always extremely limited; typically coverage is no more than $.10 per pound.
  • antiques
  • carbon black, lamp black
  • cigarettes
  • Consumer Electronics
  • door or windows with glass
  • empty drums
  • exhibition freight
  • fine furniture
  • firearms
  • marble products
  • metal file cabinets
  • mirrors
  • pack and ship freight
  • personnel effects/household goods
  • plasma TV's
  • plastic wrapped furniture
  • pool tables
  • original works of art or paintings
  • shipment picked up on a government bill of lading
  • surf boards
  • tanning beds
  • used tires
  • video games
  • windshields
At LTL Cargo, all of our carriers are extremely flexible and extremely committed to servicing our customers. So if our carriers are reluctant to haul a given item, we are absolutely confident that "restricted" item should not be shipped in a mixed-freight environment.