In road transport carrier’s liability is always 8.33 SDR per gross kg, which is about ~£8.3 pounds/gross kg. Everything exceeding this amount the carrier is not liable for. In some cases, like force majeure, the logistics company is not liable at all.

What does it tell us?

transport and risk

If the value of your shipment exceeds 8.33 SDR, it makes sense to purchase a risk insurance for the goods.

For instance, in the Baltic States it is rather a rare occasion where a high value shipment gets an extra insurance. Usually as long as there are no problems occurring and the delivery is prompt people do not see a need for further insuring. However, it is humane that the need for insuring comes up when it is already too late. On the contrary to the habit in the Baltics, Scandinavian countries have logistics and insurance go hand in hand, so perhaps there is something to learn from them.

The best way to determine wheter you need an insurance is to calculate the value of your goods and compare it to carrier’s liability.  If the value greatly exceeds the liability it makes sense to insure the goods, or if you or your company cannot really handle the potential worst case scenario where you have to write off the goods.

Better be safe than sorry!

Here’s some more information on carrier’s liability.