Cargo Insurance: No Laughing Matter

In February, 2014, five hundred twenty containers were lost at sea.Shippers and consignees often assume that if they can prove the carrier is negligent and at fault they will be reimbursed for the value of their product.

Unfortunately, ocean carriers, airlines, railroads and trucking companies limit their liability in their contracts of carriage. These rules were designed to keep the carriers in business even when they make major mistakes.

This certainly makes sense to a lawyer representing a carrier and the law is very clear, but if you are a small business that just lost a valuable shipment with no recourse, it could dramatically affect your bottom line.

Think long and hard the next time a KFS employee asks if you want to use our cargo insurance. We have great rates and are insured by one of the most reputable companies in the industry. Ask your KFS salesperson for more information about cargo insurance and general average coverage.

Read this article as well as others in our April Newsletter.