Most freight claims are not denied because of a technicality in the filing. They are denied because of something that did or did not happen in the ninety seconds when the driver handed over a delivery receipt.
Understanding how carrier liability actually works — and it is very different from insurance — is the difference between recovering your loss and absorbing it.
Carrier liability is not insurance
An LTL carrier is not an insurer of your goods. Under federal law, a carrier is liable for loss or damage occurring in its custody, but that liability is limited by the carrier’s tariff — typically expressed as a maximum dollar amount per pound, which varies by commodity and freight class.
The practical consequence surprises people. A 40-pound carton holding $6,000 of electronics might be covered to a few hundred dollars under a standard released value. The carrier is not being unreasonable; that limit is what the freight rate was priced against.
Your two options for the gap
- Declare a higher value on the bill of lading. This raises the carrier’s exposure and raises your rate accordingly. It must be declared before pickup, not after a loss.
- Buy separate cargo insurance. Usually cheaper than declared value for high-value goods, and it covers causes that carrier liability excludes.
Doing neither means accepting the tariff limit by default. Our guide to filling out a bill of lading covers where declared value goes on the form.
What carriers are not liable for
Certain causes of loss fall outside carrier liability regardless of what happened: acts of nature, acts of the shipper (including inadequate packaging), inherent vice in the goods themselves, acts of a public enemy, and acts of public authority. “Act of the shipper” is the one that catches most claimants — if the carrier can show the packaging was inadequate for normal handling, the claim fails.
The ninety seconds that decide your claim
When freight arrives, the receiver must inspect before signing. If anything is wrong, it gets written on the delivery receipt:
- Count the handling units against the BOL and note any shortage
- Look for crushed corners, torn wrap, water staining, punctures, shifted loads, and re-taped cartons
- Write specific exceptions — “2 of 4 cartons crushed on top, right side” beats “damaged”
- Photograph the freight on the truck before it is unloaded, then again on the dock
- Have the driver initial the notation
A clean, unqualified signature is documentary evidence that the freight arrived in good order. Everything after that is you working uphill.
Concealed damage
Damage found after the driver leaves is still claimable, but the burden shifts to you to show it happened in transit. If you find it: stop unpacking, notify the carrier immediately in writing, keep all packaging and pallets exactly as received, photograph everything including the inner packing materials, and request an inspection. Carriers generally expect notification within a short window of delivery, so speed matters more than completeness.
Filing the claim
What to include
- The original bill of lading
- The delivery receipt with exceptions noted
- The commercial invoice showing the value of the goods
- A repair estimate, or documentation of salvage value if the goods are partially usable
- Photographs of the damage and the packaging
- A written claim stating the amount and the basis for it
Deadlines
Standard bill of lading terms give a limited window to file a written claim after delivery, and a further period to file suit if the claim is declined. These windows are contractual and carriers enforce them. Do not wait for internal approvals — file the claim and supplement it with documentation afterward if needed.
Do not deduct from the freight bill
Withholding payment of the freight charges to offset a claim is a common instinct and a bad one. It is generally not permitted under the contract of carriage, it can put you in collections, and it gives the carrier a reason to stop negotiating.
Preventing claims in the first place
Claims are expensive even when you win: staff time, customer relationships, replacement inventory. The prevention levers are packaging and handling. Build pallets that survive normal handling, use corner boards and adequate stretch wrap, do not overhang the pallet edge, and reduce how many times freight changes hands. Fewer touches means fewer opportunities for damage — which is one reason a single asset-based carrier handling a port-to-door move often produces fewer claims than a chain of hand-offs.
Go LTL runs our own trucks and drivers across South Florida with live tracking and photo documentation through our delivery platform, so the evidence trail exists before anyone needs it. See our LTL services or request a quote.
Frequently asked questions
How long do I have to file a freight claim?
Standard bill of lading terms set a limited filing window after delivery, with a further period to bring suit if the claim is denied. The exact terms are in the carrier’s tariff and on the BOL, so check them for your carrier — and file early rather than at the deadline.
How much will the carrier actually pay?
Up to the released value limit in the carrier’s tariff, which is generally a dollar amount per pound based on commodity and class — not the full commercial value of your goods. If your goods are worth more than that limit, you need declared value or separate cargo insurance arranged before shipping.
Can I refuse a damaged shipment?
You can refuse it, but refusing an entire shipment over partial damage often complicates the claim and adds return freight costs. In most cases the better move is to accept the freight, note the damage in detail on the delivery receipt, and file a claim for the damaged portion only.
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