Caveat Emptor!  The carrier you may be hiring to move your shipments (or your supplier delivering your shipments) is no longer required by the US government to maintain a minimum level of cargo insurance.

The Federal Motor Carrier Safety Administration issued a ruling that became effective on March 21st that allowed commercial shippers to no longer maintain a set level of cargo insurance.  Citing that most of the commercial carriers are maintaining a higher level of insurance coverage than the minimum, and this stipulation falls outside the regulatory responsibility.

While this change will probably not affect your shipments, it is important to watch out for changes in the agreement you have with your carriers.  It would be easy at this time to reduce coverage by raising deductible, reducing normal coverage amounts or in extreme cases no longer provide coverage for product moving on their vehicles.

Full information on the change and an article weighing the pro’s and cons can be found here.

  • Share/Bookmark

Tags: , , , ,