Transport insurance in B2B shipping – when is additional cover useful?
Delicate goods that arrive at their destination in a completely crushed and damaged package in individual parts. Or technical components that have been damaged by strong impacts. Unfortunately, it happens again and again: after delivery, recipients discover that their goods have been damaged or destroyed. There can be many reasons for this: acts of god, traffic accidents, improper handling or simply inadequate packaging. Transport insurance is then worth the money.
What is transport damage and who is liable for it?
In our discussions with customers, we repeatedly find that they are not sufficiently prepared for such cases. This starts with the question: who is liable for transport damage? Many assume that the shipping company must be liable for damage. But it’s not that simple. It is true that, in principle, the shipping company must be liable for damage. However, damage is initially considered to be any deviation from the proper condition of the goods before dispatch. But this so-called basic liability is strictly limited in terms of the amount of damage and the cases covered. Not every case of damage is automatically attributed to the shipping company.
What is covered by basic liability?
The coverage varies in different countries. In Germany, e. g. the freight forwarders, i.e. the transport companies, are liable for damage caused during transport up to a legally defined amount. However, companies are allowed to deviate from this in their terms and conditions in favour of the customer.
When is the basic transport insurance not liable?
In principle, however, companies are only liable for damage that they have caused themselves and that they could have avoided by their actions. Damage caused by force majeure is therefore excluded. However, damage that the sender could have avoided by careful preparation is also not covered by the basic liability. This primarily concerns:
- damage due to improper packaging
- failure to label sensitive goods that require special handling
- booking the wrong shipping service
These examples alone make it clear that in practice it is difficult to prove that the transport company alone is responsible.
Limited amount of compensation
The amount of compensation is also limited:
- For parcels and packages up to 40 kg, the carrier is typically only liable for a value of goods of around €500 per shipment. For UPS and DPD, for example, the liability amount is somewhat higher at €510 and €520 respectively.
- For small consignments and freight over 40 kg, the liability limit is around €10 per kilo of consignment weight.
These liability limits are often nowhere near enough, especially for high-value goods, machinery or sensitive technology. Even a lightweight IT rack can have a value of several thousand euros.
LetMeShip – your unrivalled personal multi-carrier shipping platform
For over 20 years, we have been helping small and medium-sized companies to handle their business shipping cost-effectively and efficiently. ‘LetMeShip’ stands for: personal advice and in-house customer service that still answers the phone and takes care of your shipping needs. And all that with the best price-service performance and without any contractual obligations.
Simply ask us personally
Shipping requirements in companies are often complex and time-consuming. A task in which you can count on our support. Contact us today and find out more about our shipping offers for B2B customers!
When is it worth taking out transport insurance?
We generally recommend that our customers take out transport insurance for high-value or sensitive items. In concrete terms, insurance can be useful in the following cases, for example:
- Regular transport of high-value machinery, equipment or electronics
- Consolidated shipments with mixed freight and a high total value
- Transport on particularly risky routes, e.g. overseas
- When transporting hazardous goods, perishable goods or other special cargo
In addition to a higher claim amount of up to €50,000, you also have the certainty that you are insured against force majeure or theft, depending on the insurance. But: Even with transport insurance, you must ensure that your shipments are correctly and securely packed. Damage due to inadequate packaging is usually excluded here as well.
Coverage with selected shipping companies
- DHL: insurance coverage up to 2500 euros or 25,000
- UPS: three levels of coverage up to 50,000 euros
- FedEx: the value of goods can be declared for insurance up to approx. 50,000 euros
- DPD: Valuable shipments can be insured up to a total of €13,000.
In addition, many parcel services and freight forwarders offer transport insurance for special transport risks such as hazardous goods, special machinery or refrigerated goods.
How much does transport insurance cost?
It is not possible to make a general statement on this, as the conditions depend on the individual insurers. Usually, 1% of the value of the goods is charged.
Please feel free to contact us and we will be happy to advise you.
Does LetMeShip offer transport insurance?
We do not currently offer our own insurance. However, you can indicate when you make your booking that you require additional insurance cover. The shipping company or freight forwarder will then take out this insurance on your behalf.
And it’s as easy as this:
- When you make an enquiry by email, phone or form, let us know that you would like additional insurance. Your customer advisor will then clarify everything with you.
- When you book via our booking platform, tick the box for transport insurance. In the price overview that follows, you can see the exact insurance costs by clicking on price details.
The exact terms and conditions, such as duration, exclusions and premiums, vary depending on the insurance product. To get reliable recommendations, SMEs should discuss their individual situation with logistics companies and insurers.
Conclusion
From over 20 years of experience, we know that it makes sense to look into transport insurance. Even if it is only to be able to make a qualified assessment of which type of shipment should be considered and when it should not. Our customer service or your personal account manager will be happy to advise you on this topic in general or specifically for your particular case. Simply contact us by email or phone.
Simply ask us personally
Shipping requirements in companies are often complex and time-consuming. A task in which you can count on our support. Contact us today and find out more about our shipping offers for B2B customers!
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