Cargo Claims & Disputes: A Guide for Trucking Companies
- Nate Jones, CPCU, ARM, CLCS, AU
- Sep 24
- 2 min read
Cargo trucking companies face a variety of challenges, and one of the most complex is dealing with cargo claims and disputes. Whether it's damage, loss, or delay, knowing how to handle these situations professionally can save your business time, money, and reputation. This guide outlines the best practices for managing cargo claims and resolving disputes effectively.
1. Understand the Types of Cargo Claims
Cargo claims typically fall into three categories:
Damage Claims: Physical damage to goods during transit.
Loss Claims: Missing cargo due to theft or misrouting.
Delay Claims: Late deliveries that result in financial loss.
Each type requires a different approach, but all demand thorough documentation and timely action.
2. Act Quickly and Document Everything
Prompt reporting is essential. As soon as damage or loss is discovered:
Take clear photographs of the cargo and packaging.
Collect delivery receipts, bills of lading, and inspection reports.
Notify the carrier in writing within the required timeframe (usually within 9 months).
This documentation forms the foundation of your claim and helps ensure a fair resolution.
3. File the Claim Properly
Submit all required documents to the carrier and your insurance provider.
Include a detailed description of the issue and the value of the loss.
Follow the carrier’s specific claim procedures and deadlines.
If the claim is denied, you have the right to appeal. Be prepared to provide additional evidence and clarify your position.
4. Leverage Insurance Coverage
Having the right cargo insurance is critical. The Federal Motor Carrier Safety Administration (FMCSA) requires motor carriers to carry cargo insurance to protect against loss, damage, or theft. Minimum coverage amounts vary:
General Freight: $750,000
Household Goods: $300,000
Hazardous Materials: $1 million to $5 million3
Wexford Insurance offers tailored cargo trucking insurance solutions, including:
Physical Damage
Trailer Interchange
5. Negotiate and Resolve Disputes Professionally
Disputes can often be resolved through negotiation. Here’s how:
Base discussions on solid evidence.
Maintain professional communication with carriers.
Consider mediation or arbitration if needed.
A fair and timely resolution helps preserve business relationships and minimizes financial impact.
6. Prevent Future Claims
Prevention is better than cure. To reduce the risk of cargo claims:
Use proper packaging and secure loading techniques.
Train drivers and warehouse staff on handling procedures.
Implement tracking systems and quality control checks.
These proactive measures can significantly lower the chances of disputes and improve customer satisfaction.
Conclusion
Handling cargo claims and disputes doesn’t have to be overwhelming. With the right documentation, insurance coverage, and resolution strategies, cargo trucking companies can protect their operations and maintain strong client relationships.
Wexford Insurance is here to support your business with comprehensive coverage and expert guidance. Contact today!
