When it comes to shipping goods, there are two main types of coverage that you should be aware of: declared value protection and liability coverage. Both of these provide financial protection in the event of loss or damage to your package, but they do so in different ways. Declared value coverage is not insurance, but it does increase the airline's financial liability. Depending on the transport company you use, the declared value can represent different things.
For example, UPS uses the declared value to establish its maximum liability in the event of loss or damage to the package. It will take into account the deductibles and liability limitations of the insurance policy, that is, the insured's loss up to the declared value of the insurance, but not beyond it. On the other hand, cargo insurance is a more comprehensive form of protection. It provides coverage for goods against loss and damage under the terms mentioned in the insurance policy.
Assets are declared at a higher value to ensure that the insurance company covers the insured's maximum liability. In conclusion, when it comes to shipping goods, it is important to understand the difference between declared value protection and liability coverage. Cargo insurance is a more comprehensive form of protection that provides coverage for goods against loss and damage under the terms mentioned in the insurance policy.