Is My Couriered Package Insured? Understanding Common Carriers and Their Role
When it comes to shipping valuable items, one of the top concerns for customers is ensuring their packages are protected against potential damages or loss during transit. This is where insurance comes into play, offering peace of mind and financial security. In this blog, we will explore the concept of a common carrier, how insurance works within this context, and how to ensure your couriered package is adequately insured.
What is a Common Carrier?
A common carrier is a company or individual that offers transportation services to the general public and is responsible for delivering goods from one location to another. Examples of common carriers include courier companies, postal services, and freight shipping. These carriers must adhere to specific regulations and requirements set forth by government agencies to ensure the safe and efficient transportation of goods. So, a carrier that contracts to only certain customers is not a common or public carrier.
Is My Couriered Package Covered for Loss or Damage?
Carriers liability usually limits the loss or damage to $20 or less if it’s proven the carrier was at fault. The amount of liability varies between states and territories. Still, it’s probably best to start from the point of view of your item or goods having no cover until you have spoken to the carrier company.
In addition, the carrier may not be at fault if the goods are lost or damaged. Someone else may have caused the loss or damage. Therefore, it is best if you buy insurance coverage.
Most common carriers offer a basic level of insurance, which is typically included in the shipping cost. This basic coverage may have a limited value, often based on the declared value of the package or weight.
If your package’s value exceeds the basic coverage provided by the carrier, you may need to purchase additional insurance.
Many carriers offer higher levels of coverage for an added fee, which can be selected during the shipping process. It is essential to accurately declare the value of your package when opting for additional insurance, as it may result in inadequate coverage in case of loss or damage.
How Can I Ensure My Package is Adequately Insured?
To make sure your couriered package is adequately insured, follow these steps:
- Research the carrier: Familiarise yourself with the carrier’s insurance policies, including their basic coverage and any additional insurance options. Be aware of any limitations, exclusions, or restrictions on coverage.
- Declare the accurate value: When shipping your package, declare its actual value to ensure it is appropriately insured. Under-declaring the value may lead to insufficient coverage if a claim needs to be filed.
- Consider buying your own Transit insurance: If the basic coverage provided by the carrier does not meet your needs, consider talking to your insurance adviser about Transit insurance. This covers accidental loss or damage and can be put into place to cover all your sendings automatically each year. So, you can set and forget unless you need to claim.
Some tips
- Keep documentation: Retain all shipping documentation, including receipts, tracking numbers, and any proof of insurance. This information is crucial in case you need to make a claim.
- Package your items securely: Proper packaging is essential to minimise the risk of damage during transit and is usually a requirement for insurance cover. Use appropriate packing materials and make sure your items are well-protected within the package.
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