Your shipment gets damaged or lost during transit—what happens next?
You may be like many other shippers and assume freight is fully covered. Unfortunately, it’s not. That’s because carriers have limits of liability, which details what they will and will not cover. And that is why you may want to consider additional insurance for your shipments.
Let’s break down what’s actually covered under standard liability (spoiler: not much), when you need more protection, and how LTL vs. FTL coverage really works.
Carrier Liability Isn't the Same as Freight Insurance
When you ship goods, it’s important to know how much protection you actually have if something goes wrong. Carrier liability is the minimal protection your carrier provides. It’s calculated based on weight, not the actual value of the goods.
- For less-than-truckload (LTL) shipments, liability limits are set by federal law under the Carmack Amendment.
- For full-truckload (FTL) shipments, liability is usually calculated per truckload.
The key takeaway: The value of your shipment doesn’t matter when these limits are applied. If your goods are worth far more than the per-pound or per-load limit, you could be severely under-compensated if there’s loss or damage.
Typical Liability Limits
- LTL: Around $0.50 per pound
- FTL: Generally $100,000 per truckload
How This Differs From Freight Insurance
Freight insurance is optional coverage you can purchase to protect your shipment’s full value. Depending on the policy, it can cover:
- The entire value of your goods
- A broader range of risks than carrier liability alone
In short: Carrier liability is limited and may leave you exposed. Freight insurance can bridge the gap and ensure you’re fully covered.
LTL vs. FTL: Why Coverage Varies
Why does it matter whether you’re shipping less-than-truckload (LTL) or full-truckload (FTL)? The difference directly impacts both risk and coverage.
LTL: Higher Risk, Lower Liability Limits
With LTL shipping, your freight shares trailer space with shipments from other customers. This means:
- Multiple stops along the route
- More frequent loading and unloading
- Increased handling — and therefore, higher risk of loss or damage
Because LTL carriers handle a high volume of freight, they cap liability at lower rates to limit their exposure to claims.
FTL: Fewer Touchpoints, Potentially Higher Coverage
In an FTL shipment, your goods are the only cargo in the trailer. This results in:
- Fewer stops and transfers
- Minimal handling of your products
- Lower risk of loss or damage
FTL coverage is often higher than LTL, but it still depends on the specific carrier’s policies.
The Bottom Line
Fewer touchpoints typically mean better protection. But whether you choose LTL or FTL, you should understand your carrier’s liability limits and consider supplemental insurance if your freight’s value exceeds those limits.
When to Add Supplemental Insurance (and Why It’s Worth It)
So, how do you know if your shipment needs extra protection?
The safest approach (and our recommendation) is to insure every shipment. If something goes wrong, it’s far easier to settle a claim with an insurance company than to negotiate with a carrier under limited liability rules.
A Real-World Example
Let’s say you’re a retailer shipping $35,000 worth of goods. If that shipment is lost or damaged, standard carrier liability might only reimburse $0.50 per pound — just a few hundred dollars. With freight insurance, you could recover the full $35,000, sparing you from major financial loss and the hassle of replacing stolen or damaged products.
When Supplemental Insurance is a Must
Freight insurance is especially important if you’re shipping:
- High-value freight
- Fragile or temperature-sensitive cargo
- Items prone to theft, such as electronics or retail products that can be easily resold
Why It’s Worth It
While freight insurance adds a small upfront cost, it can save you thousands in potential losses — not to mention hours of time spent dealing with claims. It’s a small price for true peace of mind.
What to Ask Before You Ship
Before signing a contract with a shipping partner, do your research. You want a shipping logistics partner you trust that has your best interests at heart.
Ask potential shipping logistics partners these questions:
- What’s the standard liability on this shipment?
- What are the limits by carrier?
- What insurance options do you recommend for this load?
These key questions will help you determine the most cost-effective and safest way to ship your goods. A good logistics partner will be able to provide clear answers and guide you on the best option for your business.
How VinWorld Protects You
At VinWorld, we go beyond simply moving freight: we help you minimize claims, understand liability, and ship with confidence.
Proactive Planning
We start working for you before your shipment even moves. That means:
- Choosing the optimal transportation method (LTL vs. FTL)
- Coordinating every detail, from pickup to delivery
- Actively tracking your shipment and keeping you informed of any changes along the way
Extra Protection for LTL
For LTL shipments, we:
- Help you secure freight insurance to protect your cargo’s value
- Handle and follow through on any claims until they’re fully resolved
Rigorous Standards for FTL
For FTL shipments, we:
- Apply a strict 18-point carrier administration process to remove at-risk carriers from our network
- Verify all carrier coverage
- Advise when additional freight insurance is needed to keep your shipment fully protected
The result? No guesswork. No runarounds. Just clear communication, reliable carriers, and peace of mind that your shipments are in safe hands.
Conclusion: Move Your Shipments With Confidence
Don’t wait until there’s an issue to realize you’re under-covered.
With VinWorld, your cargo is matched to the right service and insurance, so you stay protected and in control. That way, you can avoid costly surprises throughout your shipping journey.
Ready to partner with a shipping expert?
Set up a time to talk to the experts at VinWorld and keep your shipments covered.
VinWorld is a global logistics partner with deep expertise in regulatory compliance and domestic shipping requirements. Our team of shipping experts will take shipping off your plate, handling all paperwork, maintaining compliance, and saving you time.

August 06, 2025
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