Many shippers rely on the trucker, the airline, or the ocean carrier’s liability coverage to insure their international shipments. In most cases this coverage is inadequate. Carrier’s liability coverage has many exclusions and policy limitations you should be aware of.
First, they are not responsible for all losses and nothing that is beyond their control. The limits as a general rule as per the Warsaw Pact are by sea freight, $500.00 per package or container. By international air freight, the carriers are liable for $9.07 per pound or $20.00 a kilogram.
A brief list of the exclusions or areas where the carriers are NOT responsible are:
Fire, Perils and accidents at sea, Acts of God, Acts of War, Strikes, Riots, and acts of neglect as they relate to navigation and management of the ship. The burden of proof also rest with the shipper to prove the claim.