The Silent Disappearance of Concealed Damage Claims in Freight 

Carriers Are Moving Away from Concealed Damage Claims: What Shippers Need to Know

A significant shift has recently emerged among freight carriers, and it’s about how carriers handle concealed damage claims. Historically, carriers have processed insurance claims for damage discovered after delivery, known as concealed damage.

However, times they are a-changin’, and it’s vital for you, the shipper, to understand the implications of these changes so as to better protect yourself if the need arises.

What Is Concealed Damage

Any damage that is not immediately visible on delivery but that might be discovered after unpacking the shipment is concealed damage.

This type of damage has traditionally been a point of contention between shippers, consignees, and carriers. Carriers have often accepted claims for concealed damage within a specified time frame after delivery, typically 24 hours. Concealed damage claims, when accepted, will only pay out ⅓ of the shipment value. However, the increasing costs and difficulties that accompany concealed damage claims have led carriers to tighten their policies.

Report It Immediately

The more recent trend is that carriers are now likely to refuse insurance claims for concealed damage if nothing is noted on the proof of delivery, aka the POD.

This means that even very minor damage to packaging must be noted and signed for at the time of delivery. With the number of freight companies that have had to close their doors in the past few years, it’s understandable that they need to minimize losses and risk of fraud. 

What It Means for You

For shippers, this slow shift means you’ll need to pay more attention and look into your cargo more closely during delivery. Here are the key steps to take to adapt to this new reality:

• Thorough Inspection: Upon receiving your shipment, make sure to conduct a thorough inspection of the packaging and the visible parts of your goods. Look for any signs of damage, no matter how minor.
• Documentation: Note any damage, including minor scratches or dents on the packaging, on the POD. This documentation is crucial for any potential claims. Make sure that everything is noted and signed as clearly as possible.
• Photographic Evidence: Take photographs of any damage to support your documentation. These photos can serve as vital evidence if a dispute arises.
• Immediate Reporting: If shipping with Freightera, report any damage to our Client Care team immediately. Delaying this report can result in your claim getting denied.

How to Safely Package Your Freight

Given the stricter policies for concealed damages, it’s now even more important than ever that your freight is packaged securely. Here are some tips to help you protect your shipments.

1. Use Quality Materials: Invest in high-quality packaging materials. Sturdy boxes, proper cushioning, and strong tape can make a significant difference in protecting your goods.
2. Securely Seal Packages: Make sure that all packages are sealed securely. Use heavy-duty tape and reinforce edges to prevent the package from opening during transit.
3. Proper Labeling: Clearly label all packages with handling instructions. Indicate if the package contains fragile items and needs careful handling.
4. Cushioning and Protection: Use ample cushioning materials such as bubble wrap, foam peanuts, or air pillows to protect the contents from shifting and damage during transit.
5. Palletizing: Use pallets or even crates to consolidate and secure your goods. Ensure that items are stacked evenly and wrapped tightly with lots of shrink wrap.

For more detailed guidance on packaging your freight, be sure to check out our Freight Packaging Guide.

Conclusion

In conclusion, make sure to conduct thorough inspections, document any damage on the POD, and package your freight correctly. If you follow these steps, you can protect your shipments and avoid any complications. 

To get the safest and simplest shipping experience, backed by the best support team in the industry, sign up for your Freightera account. Start your journey by getting your freight quote at Freightera today to see for yourself how much you could be saving!