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May 22, 2023
Amazon Freight is the hassle-free and secure option for shippers. Unfortunately, moving freight cargo is not always free from risk. Shippers can take out an insurance policy for freight shipments that provides them with cover in case of theft, misplaced items, or damage to cargo during transit. The insurance premium is calculated as a percentage amount of the total declared value of the cargo, and in the event of incidents described above, is paid to the business by the insurance provider.

We do not currently provide insurance for shippers. We do, however, advise that all businesses that move cargo with us are protected. Read on to get all the information you need about delivery insurance for road freight.
What is freight insurance?
Although freight shipments are normally safe and secure, it’s important to be mindful of the risks and aware of what can go wrong during transport. Insurance for road freight protects shippers from the loss of, or any physical damage to, cargo when in transit. The policy that directly covers shippers transporting freight is ‘cargo insurance’. This offers compensation to shippers in the event of loss, damage or theft of items in transit. It is available either as ‘land’ or ‘marine’ cargo insurance, but the former is the policy shippers use if moving road freight.
Do I need insurance to ship freight?
While insuring freight is not compulsory, it is advised that you take out cargo insurance If the value of your total shipment exceeds the freight forwarder’s liability limit. Since carrier liability is limited in international trade, it is often the case that compensation for lost or damaged freight is less than the actual loss to the shipper.
What is freight liability?
While insurance is a product that protects shippers from certain risks, liability coverage concerns the responsibility of the freight forwarders and carriers involved in the shipping process. The third-parties often take out insurance policies to cover themselves against claims of liability should something happen to the shipment.

Types of freight coverage
1. Cargo Insurance
Cargo insurance is the most relevant for shippers using a third party to transport goods, as it offers direct protection for items being shipped. It covers loss or damage to goods being transported while in the care, custody, or control of the freight forwarder. Shippers are compensated in the event of damage, theft, and non-delivery.

2. Errors & Omissions (E&O)
E&O covers the freight forwarder’s liability for any errors and/or omissions that mean the shipper suffers financial losses. If the forwarder fails to correctly document the consignment, in turn causing delays or penalties, E&O insurance offers protection.

3. Professional Indemnity
Professional indemnity covers the third-party carrier's liability for any financial losses or damages resulting from their professional services. This coverage can protect the shipper if the third-party carrier makes a mistake or fails to fulfill their obligations under the contract.

4. Freight Forwarder’s Liability
Freight forwarder’s liability protects carriers and freight forwarders in the case of damage or loss to goods they are transporting. The UK government recommends all freight forwarding companies to have freight forwarder’s liability insurance. This does not insure the actual cargo, which is the responsibility of the shipper.

What are Amazon’s liability terms?
Third-party carriers like Amazon offer limited coverage to shippers — this is called ‘freight liability’. This is based on the type of goods in consignment, but it does not insure the shipper for the full value of the cargo.

As forwarders, Amazon Freight handles your cargo, and we will pay claims to shippers for any proven loss or damage to shipments caused by Amazon at the actual replacement value of the lost or damaged shipments. Like all transport companies, our liability is limited to any compulsory international convention or national law liability limit. Under CMR limitations, Amazon Freight has a fixed liability at 8.33 SDR per kilo. If the value of goods shipped exceeds this, insurance is highly recommended.

We are not liable for any delays to shipments, nor for any loss or damage to goods if a) this arises from the shipper’s breach of terms and conditions, or b) damage is caused by a ‘Force Majeure Event’ (an unexpected event outside of all parties’ control). All claims for loss or damage to shipments must be made in written format within 12 months after the shipment was consigned for transportation, and contain a copy of signed proof of delivery.

Start your freight journey today
Some of the most well known compaines on Earth use our freight solutions to deliver your goods safely. If you have further questions around insurance, liability, and Amazon Freight’s policy, feel free to contact us at freight-uk-interest@amazon.com. Our team will answer any questions you have. If this article has provided you with the information you need, you can start your freight journey today by creating your freight shipping account with us.
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