What is the declared value?
The shipper has the possibility to declare a certain value for the goods on a shipment. If a value is declared on the bill of lading, the maximum liability is increased for the claim settlement if the claim is accepted. The declared value is not an insurance but rather a risk factor for the transporter.
For example, if the total weight of a shipment is 100 lbs and the claim is $500.00 while the declared value on the bill of lading is $500.00, the transporter’s maximum liability will be $500.00, as opposed to the $200.00 maximum liability if there was no declared value on the bill of lading. Additional fees could be invoiced to the customer for a shipment according to the declared value. The maximum declared value is $5,000.00.