--- title: Who Is Liable When a Carrier Damages Your Goods? Carrier Liability Limits Explained description: If a carrier damages your goods, who pays? Learn how carrier liability limits work, what you can claim, and how cargo insurance fills the gap. --- [![Cover Buddies Imaginate Email Header](https://www.coverbuddies.com/hubfs/Cover%20Buddies%20Imaginate%20Email%20Header.png)](https://www.coverbuddies.com) - [ABOUT](https://www.coverbuddies.com/about-cover-buddies) - SOLUTIONS - [Commercial Insurance](https://www.coverbuddies.com/commercial-insurance) - [Consumer Insurance](https://www.coverbuddies.com/consumer-insurance) - [Find Me A Better Deal](https://www.coverbuddies.com/find-me-a-better-deal) - [KNOWLEDGE HUB](https://www.coverbuddies.com/en/knowledge-hub) - CONTACT - [Send Enquiry](https://www.coverbuddies.com/contact-us) - [Request A Call](https://www.coverbuddies.com/request-a-call) - [WhatsApp Us](https://wa.me/message/RCLFWAZGWXTKC1) - [Newsletter Sign Up](https://www.coverbuddies.com/newsletter/subscribe) [WHATSAPP US](https://wa.me/+60122159268) [DOWNLOAD OUR ESSENTIAL INSURANCE GUIDE HERE](https://www.coverbuddies.com/essential-guide-download) # Who Is Liable When a Carrier Damages Your Goods? Carrier Liability Limits Explained If a carrier damages your goods, who pays? Learn how carrier liability limits work, what you can claim, and how cargo insurance fills the gap. [Cover Buddies](https://www.coverbuddies.com/en/knowledge-hub/author/cover-buddies) Oct 4, 2026 --- **The short answer** In most cases, the carrier is responsible for goods that are lost or damaged while in its care, but that responsibility is often limited by law or by the carrier's own conditions of carriage. This means the amount you can recover from the carrier may be less than the actual loss. Cargo insurance on your own goods is the way to close that gap. ## Who is liable when goods are damaged in transit? Generally, the party who had custody of the goods when the damage happened is the first one you would claim against. For a road delivery, that is normally the carrier or the courier. For a shipment arranged by a forwarder, you may claim against the forwarder, who may in turn claim against the carrier. Whether the carrier is liable regardless of fault, or only if it was negligent, depends on the contract and the terms of carriage that apply. Always read the delivery terms before you ship. ## Why liability limits matter Most carriers do not accept unlimited responsibility. Their terms may limit liability by weight, by consignment or to a fixed maximum, and they may exclude certain causes such as improper packing or events outside their control. If your goods are worth more than the limit, the difference is yours to absorb unless you have insured them separately. ## What can reduce or defeat a claim? - Poor or insufficient packaging - Failure to declare fragile, valuable or special goods - Not noting visible damage at delivery - Missing the time limit to notify the carrier of a claim - Causes the carrier's terms exclude, such as natural events ## What should I do when goods arrive damaged? 1. Take photos before moving or unpacking the goods further. 2. Note the damage on the delivery order before you sign, if possible. 3. Notify the carrier in writing as soon as you can. 4. Keep the packaging, invoices, delivery documents and any correspondence. 5. Tell your insurer promptly if you have cargo cover. ## How does cargo insurance help? Cargo insurance pays for the goods themselves, whether or not you can prove the carrier was at fault, subject to the policy terms. It also tends to be quicker than waiting for a dispute with the carrier to settle. Your insurer may then pursue the carrier for recovery. See our guide on [insuring goods in transit when you use a third-party courier](https://www.coverbuddies.com/en/knowledge-hub/can-i-insure-goods-in-transit-if-im-using-a-third-party-courier). ## Common questions **If the courier says it is not responsible, am I covered?** Not by the courier. Unless you have your own cargo insurance, you may bear the loss. Check the courier's terms before you ship valuable goods. **Can I declare a higher value to the carrier?** Some carriers allow it under their terms, and some require additional arrangements. Ask before shipping. **Is the carrier's insurance my insurance?** No. The carrier's liability policy protects the carrier. You are not an insured party on it. **Who pays if a subcontracted driver causes the damage?** Usually the party you contracted with remains responsible to you, and they deal with their subcontractor. ## Related reading For the carrier's side of the picture, see [Difference Between Carrier Liability Insurance and Goods in Transit Insurance](https://www.coverbuddies.com/en/knowledge-hub/difference-between-carrier-liability-insurance-and-goods-in-transit-insurance). ## Hear it from David Teh Want to hear how marine and goods in transit cover differ? Founder David Teh explains it on the Cover Buddies Podcast. [Read the episode page](https://www.coverbuddies.com/en/knowledge-hub/marine-insurance-vs.-goods-in-transit-insurance-david-teh-answers-your-question), listen on [Apple Podcasts](https://podcasts.apple.com/us/podcast/answering-your-questions-what-is-the-difference/id1735189484?i=1000675296461) or [Spotify](https://open.spotify.com/show/3JOJkIET0jkicJbEANDSUp), or [watch on YouTube](https://www.youtube.com/watch?v=dfiYMYQD1o4). **Work with Cover Buddies Today!** Shipping goods that matter to your business? Cover Buddies can help you arrange cover that fits how you ship. Explore [Marine Insurance](https://www.coverbuddies.com/marine-insurance-malaysia), [get a quote](https://www.coverbuddies.com/request-information-commercial) or [WhatsApp us](https://wa.me/message/RCLFWAZGWXTKC1). 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Cover Buddies Oct 4, 2026 ### [Carrier's Liability vs Cargo Insurance: Which Does a Trucking or Logistics Company Need?](https://www.coverbuddies.com/en/knowledge-hub/carriers-liability-vs-cargo-insurance-which-does-a-trucking-or-logistics-company-need) Carrier's liability and cargo insurance are not the same. Learn what each covers, who it protects, and which one a trucking or logistics company... Cover Buddies Oct 4, 2026 Liability ### [What Does Carrier Liability Insurance Cover?](https://www.coverbuddies.com/en/knowledge-hub/what-does-carrier-liability-insurance-cover) When your cargo hits the road, carrier liability insurance ensures you're not left bearing the weight alone. Shaba Sep 30, 2024 ### Get The Latest Updates From Us! 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