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Declared value is the value of goods that the shipper declares to the carrier for the purpose of determining the maximum liability in case of loss, damage, or theft during transportation.
The declared value is the amount that a shipper states on the shipping documents to indicate the value of the goods being shipped. This value helps carriers determine how much insurance coverage is required in case of a claim. If the goods are lost or damaged, the declared value will set the maximum amount the carrier is liable for.
When you declare the value of your goods, it determines the carrier’s liability, ensuring you receive compensation if the goods are damaged or lost. It can benefit your business by providing peace of mind, knowing you’re covered for the full value of your shipment.
Accurate declared values help prevent disputes over damages and simplify the claims process. This makes it easier to ensure your shipments are protected, reducing the risks involved in transporting valuable goods.
Buske Logistics is a Top 40 3PL with over 35 warehouses across North America, specializing in warehousing, transportation, and value-added services. We provide tailored logistics solutions serving major Fortune 500 companies.
Declared value is crucial because it establishes the financial protection level for both the shipper and the carrier during transportation. By declaring the value of goods accurately, shippers can ensure they are adequately compensated if anything goes wrong during transit.
For example, if you are shipping electronics worth $10,000, declaring the appropriate value ensures that you can be reimbursed up to the declared amount in case of loss or damage during delivery.
