What is Declared Value Coverage?
Declared Value Coverage is the maximum liability a carrier accepts for a shipment based on the value declared by the shipper at the time of booking. It is not the same as cargo insurance, but rather a carrier’s limited liability in case of loss or damage.
Declared value affects how much the shipper can recover if something goes wrong—but only up to the stated amount, and only under specific terms and conditions set by the carrier.
Key Points About Declared Value Coverage
- Shipper sets the value of the goods when tendering the shipment
- The carrier charges a fee based on the declared value
- It provides limited reimbursement, often capped by mode (e.g., $0.50/lb for ground, $20/kg for air)
- It does not cover all risks like theft, weather, or improper handling unless specifically allowed
- Full coverage requires cargo insurance, not declared value
Example in Practice
A shipper declares a value of $10,000 on a shipment of electronics sent via air. The carrier’s liability is limited to that amount if the shipment is damaged, lost, or stolen—but only if the damage qualifies under the carrier’s terms. If the goods were improperly packed or damaged due to a weather event, reimbursement may be denied.
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