Standard LTL Carrier Liability vs. Honest Freight's All-Risk Insurance

What is the difference between standard LTL carrier liability and Honest Freight's All-Risk freight insurance?

Standard LTL carrier liability is the minimum legal protection most carriers provide under federal law (the Carmack Amendment). It's limited and often falls far short of your goods' actual value.

Honest Freight's optional All Risk Insurance is a comprehensive, full-value policy that fills those gaps and protects you directly.

The 2 main reasons to use our All Risk Insurance:

• Insure and file claims for the actual amount you sell your goods to your client for. With the Carrier's Standard Liability insurance they only cover up to the costs you paid for your products.

• Claims are paid out quick! With the Carrier's Standard Liability insurance, they can take months to finally pay you out.

• Cost is low! Any insured shipment under $8500.00 costs only $30.00 flat and comes with a zero deductible. (we can insure up to $5,000,000.00 too!)

Here's a side-by-side comparison:

Aspect	Standard LTL Carrier Liability (Carmack Amendment)	Honest Freight's All-Risk Insurance (via Falvey)
Coverage Type	Limited liability (carrier fault must be proven in many cases)	All-Risk (comprehensive physical loss/damage from external causes)
Liability Limit	Typically $0.10–$25.00 per pound (varies by carrier tariff, freight class, commodity, and packaging); often capped low (e.g., $0.50/lb common for many classes)	Full declared value (up to the insured amount—no per-pound cap)
Payout Basis	Actual loss or depreciated value (not full replacement/retail); partial settlements common (Your Costs of the goods)	Full-value reimbursement (covers invoice/replacement cost for covered losses) (The amount you sell your goods for)
Proof Required	Shipper often must prove carrier negligence; many claims denied (>50% in some reports)	Less direct carrier fault proof required. Signed POD for damages is still best.
Concealed Damage	Often limited or denied if not noted at delivery especially if reported after 3 calendar days.	Covered (including hidden damage discovered later, subject to policy terms) Must be reported to us within 12 calendar days to file claim. The sooner the better!
Exclusions & Fine Print	Many (e.g., packaging issues, certain perils, acts of God, shipper fault)	Broader coverage with fewer exclusions; tailored for trucking risks (some items like perishables or high-value goods may have restrictions—check with us first to confirm)
Claim Process	Filed against carrier; can take 9+ months; carrier investigates/denies often	Filed direct with All Risk (24/7 portal); faster resolution (often 14-30 days); we handle the paperwork!
Cost	Included in base rate (but very limited protection)	Affordable add-on (pennies per dollar of value; pay-as-you-go per shipment)
Best For	Low-value, durable freight where risk is minimal	High-value, fragile, time-sensitive, or any shipment where full protection matters
Peace of Mind	Low—gaps leave shippers exposed to major financial hits	High—true "sleep at night" coverage beyond carrier limits

Why shippers choose Honest Freight's All-Risk option:

• Carrier liability is designed to protect the carrier, not you. A $10,000 shipment weighing 500 lbs might only recover $250–$1,000 under standard limits—even if the carrier is at fault.

• Our All-Risk policy acts as Shipper’s Interest coverage: It reimburses you directly for covered losses, regardless of the carrier's stipulations on tariffs, per lb coverage, and handles complex claims so you don't have to fight the carrier.

• Zero deductible on many non-restricted commodities (under certain values); multi-carrier flexibility (coverage follows your shipment).

• Easy to add per load—declare value at quoting/booking, pay a small premium, and ship protected.

Q: When should I add All-Risk insurance to my LTL shipment? Add it for:

• High-value goods (> $5,000–$10,000 or more in Total).

• Fragile, electronics, machinery, or perishables.

• Any load where damage/loss would hurt your business.

• Peace of mind on regular shipments (we can set up account-level options for frequent shippers).

Q: How do I add Honest Freight's All-Risk coverage?

Just mention it along with the value you'd like it insured to when requesting a quote (or select it in our portal/form). Provide shipment value and details—we'll include the premium (usually a small % of declared value) and bind coverage instantly. Claims go straight to our All Risk team—we coordinate everything.

Standard carrier liability is the bare minimum—don't leave your freight exposed. With Honest Freight + All Risk, you get real protection that matches your goods' true worth.

Got a shipment coming up? Drop the details (value, weight, commodity, origin/dest)—we'll quote both standard and fully insured options so you can see the difference and decide what's best for you.