Additional Reading

Are you sure
you’re insured?

You ship things. Big things. Little things. Lots of things. And for the most part, the carriers you work with do a good job.

But, every now and then, bad things happen to good cargo. When that happens, you might be in for an unpleasant surprise, especially if you’re relying on your commercial insurance policy — or the carrier’s liability coverage — to protect you.

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Large tractor-trailer on road driving spilling cargo packages

What you think is
insurance might not be.

When it comes to protecting shipments from loss or damage in the supply chain, some shippers think their commercial insurance policy has them covered. However, unless you’ve added a specific endorsement in the policy to cover shipping, it may not cover your losses.

Many others automatically rely on carrier liability, assuming that it’s “insurance.” Often, shippers even declare — and pay for — extra protection, up to the value of their goods. While carrier liability can be a perfectly adequate way for some shippers to protect their goods in transit, it’s simply not insurance. It all depends on what you’re shipping, the terms you may have negotiated with your carrier and the standard limits provided by each different carrier.

The key is understanding how — or even if — you’re covered, and the impact a loss can have on your bottom line.

grey clouds in overcast sky

What can possibly
go wrong?

Storms. Fires. Accidents. Theft. Inadequate packing by a vendor. Suspected mishandling. Or just plain bad luck. In the event of a lost or damaged shipment, you may quickly discover all the gaps and loopholes in — and limits of — carrier liability. And even if you’re due compensation, you may only get pennies on the dollar. Not to mention legal fees you may have to incur to “win.”

Sinking ocean freight ship losing cargo containers
Wavy ocean surface
tilted red cargo container submerging in water alt=
Wavy ocean surface with bubbles underwater

For example...


If a ship catches on fire, damaging your cargo, the carrier has no liability if the fire wasn’t the carrier’s fault.

Pirates take the ship? You
probably won’t make a recovery
for “assailing thieves.”

Pirates take the ship? You
probably won’t make a recovery
for “assailing thieves.”


A truck carrying your shipment gets caught in a tornado? That’s an Act of God and you’re not protected. Unless, of course, you have real insurance.

And there are plenty more exclusions to carrier liability that might surprise you.

Blue and green sea turtle
Blue whale shark with blue spots in the ocean

Don’t get caught off guard.

If your shipment never arrives, or is damaged during shipping, you want to know you’re covered. Really covered. But when you try to make a claim, you may find that the carrier liability you thought was protecting your cargo really isn’t. And your compensation may not come anywhere close to covering your actual loss.

Learn more about:
TL/LTL Carrier Liability Limits
Ocean Carrier Liability Limits


How many new sales does it take
to make up for one loss?

Change the numbers below to calculate a loss scenario:


It would take


in new sales to
recover that loss.

Crumpled yellow paper on top of documents
Calculator, pencil on top of a yellow notepad for cargo loss and damage
Empty wodden crate box

Bottom line:

If something bad
happens to your cargo,
nothing good can
happen unless you have
real insurance.

Rusty crowbar

That’s where we come in. We’re UPS Capital. We offer real insurance solutions that help mitigate risk in your supply chain, safeguard your reputation and protect your bottom line.


UPS Capital offers a superior risk-mitigation alternative to carrier liability or a commercial insurance policy.

brown icon of box that has shipping insurance

It’s true protection for your bottom line. You’re covered up to the full sales value of your goods.

brown icon that has your policy

It’s a real insurance policy. Customized for your unique business, not a one-size-fits-all program, like carrier liability.

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It will likely cost you less. Seriously.

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The claims process is simple and fast.
92% of claims are paid within 5 business days of receiving all required documentation.

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It can be a business expense. That makes it tax deductible.

brown icon of truck loading boxes from warehouse

It’s flexible. Coverage can be expanded to include your warehoused inventory.

UPS shield logo

Be sure. Be insured.

Don’t just think you’re insured. Know you’re insured.

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