B/L, Bill of Lading

Quick Tip #29
Cargo Liability versus Cargo Insurance

Don’t make the mistake of assuming that Cargo Liability and Cargo Insurance are the same thing. They are not.

Cargo Liability is the maximum amount of liability a carrier will assume if they are determined to be 100 percent at fault which must be stated on their Bill of Lading.

Cargo Insurance is purchased by the shipper for protection against losses resulting from all perils (loss, damage, theft) and can cover more than 100% of the cargo’s value.