How to File a Freight Claim - NTG, Formerly FreightPros (2024)

What’s in this Freight Paper?

1. Step by step instructions on filing a freight claim.
2. Answers to common claims questions.
3. List of common claims mistakes and how to avoid them.

If you are a freight shipping veteran, chances are you havehad to file a freight claim for a shipment that was damagedor lost. Unfortunately, the claim process for LTL shipping isdrawn-out and often takes several months to complete.There are, however, a few simple but important steps thatcan be taken to ensure that you have the best opportunity toget fair compensation on your claim. The purpose of thiswhite paper is to walk you through the freight claim process,provide instructions and tips on what to do when your freightis damaged or lost, and teach you how to go about filing aclaim with the freight carrier or third party insuranceprovider. Let’s get started!

What Do I Do If My Freight Is Delivered Damaged?

The first thing to do if you realize your freight has beendamaged during transit is also the most important; youMUST sign the POD for damage. The POD is the “Proof ofDelivery” and acts as a delivery receipt for the goods beingshipped. To “sign for damage” is to notate clearly on the PODthat the freight was damaged when it was delivered, and tomark exactly what was damaged. Be as specific as possiblewhen noting the damage. If damage is not noted on thePOD, the carrier will most likely deny your claim, so thisstep is VERY important. It’s also important to take pictures ofany damage, as these pictures will be used later in the claimsprocess as proof of carrier fault. You could also choose torefuse the freight, in which case most carriers will send thedamaged product back to the shipper for inspection. The next step is to determine whether the damaged freight isrepairable. If the goods are damaged beyond repair and mustbe disposed of, you will file a claim for the full price of theitem. In this case, you will need to include a writtenexplanation of why the item was not repairable. On the otherhand, if the damage is repairable you should file a claim forthe cost of the repair, so make sure to keep your invoices andreceipts. Note that recent changes to the National Motor Freight Classguidelines indicate that concealed damages must be reportedto carriers within five days of delivery. This means that ifdamage is not noted on the POD, you must act fast in lettingthe carrier know about the damage in order to have a chanceat getting a payout.

What Do I Do If My Freight Is Lost?

If your freight is missing, the carrier will spend about a week doing a dock check. A “dock check”is the process in which the carrier traces the last known path of the freight in an attempt to findthe missing shipment. If the freight is not found, the carrier will eventually declare the freightofficially “lost,” which gives you the opportunity to begin the claim process. You will submit theclaim for the cost of the entire product.

What Do I Need To File A Freight Claim?

When the time comes to file the claim with the carrier, you’ll need a few documents to ensureyour claim is submitted correctly. First, you will need to fill out the claim document provided by the freight carrier. Each carrierclaim document is different so make sure you use the correct documentation. You can get theclaim form directly from the carrier claim department, or from your third party freight broker. Ifyou used third party insurance and are filing the claim through a third party, contact your brokerand they will get you the third party claim documents. Along with the claim document, you will also need to submit an invoice for the damaged or lostgoods. This invoice is the second essential document that you will need for a successful claim. Ifthe freight was partially damaged and then repaired, you will need to have the repair invoiceshowing the total cost of repair. If the item was damaged beyond repair, you’ll need themanufacturer invoice stating the total value of the item, as well as a written explanation orinspection detailing why the freight could not be repaired. Please note that if the claimed item is something you manufacture or sell, the price on theinvoice must reflect the cost you paid for the item or its parts, NOT what you charged your customer. If you submit a claim that includes marked-up charges to your customer, the carrierwill deny the claim and make you re-submit it. Third, if you are filing a claim for damage, you’ll need to include photos of the damage taken atthe time of delivery. These photos, along with the signed POD noting damage, act as proof thatthe freight was damaged during transit, and not after delivery. So what do you need to file a damaged freight claim?

1. Carrier Claim Document
2. Signed POD that notes damage
3. Invoice for damaged goods
4. Photos of damage if applicable

To file a lost freight claim, you’ll need:

1. Carrier Claim Document
2. Invoice for lost goods
3. An official declaration from the carrier that the freight is lost.

A note about shipping charges: Carriers can only approve a claim on loss or damage if theshipping charges are paid for. Carriers will deny a claim if the shipping charges are unpaid.If the shipment did not deliver, you can include the shipping costs within the claim itself, askingto be reimbursed for what you paid.

How Long Does It Take To File A Claim And Get Paid?

Filing a damage or loss claim with a carrier is a lengthy process, and patience is necessary. Tosubmit the claim, you will follow the instructions in the carrier claim document. Some carriersallow claims to be filed through their website, while others require you to email, fax or mail thedocumentation to the carrier claim department. Once you’ve submitted the claim, the waitinggame begins. Two to three weeks after filing the claim, we recommend contacting the carrier’s claimdepartment to confirm that the claim has officially been submitted and is under review.Freight carriers receive a large number of claims each day, so it’s important to confirm that theclaim is underway and did not slip through the cracks. Sometimes the carrier will assign theclaim its own claim number, and other times the claim will be identified by the shipment’s PROnumber. You can always check the progress of the claim by contacting the carrier claimdepartment and referencing the PRO number or the claim identification number. Claims can take several months to be processed, and each carrier has different average waitingtimes. Unfortunately, once the claim is submitted and you have confirmed it is under review,nothing can be done to speed up the process. This is why it is so important to make sure yourclaim is filed correctly to avoid any hold-ups in the process.

What Is Third Party Insurance?

You can read our insurance blog for a more in-depth description of third party insurance, but insimple terms, third party insurance is an insurance provider that your broker can employ formore protection of your freight. While all carriers have some basic protection for the freight they transport, this coverage islimited. Third party insurance, on the other hand, often has much better coverage of yourshipping items, as well as faster payout times. Instead of adhering to limited liability coveragethrough the carrier, third party insurance often has full coverage for most items and only a $500deductible. If you are shipping expensive or breakable items LTL, we highly suggest acquiringthird party insurance.

Why Did My Claim Get Denied?

There are several reasons that a carrier might deny a claim, but we see two reasons for claimdenial more often than others. First, the POD was not signed at the time of delivery notatingdamage. If the POD is signed “clean,” – not stating damage – then there is no proof that the itemwas damaged in transit, thereby releasing the carrier of any responsibility per their terms of use.Signing the POD for damage is crucial in getting your damaged freight claims paid. The second most common reason that claims get denied or only partially paid is due to thecarrier’s limited liability coverage. Each carrier will have different limited liability coverage,depending on weight, commodity or freight class. Many carriers use a per-pound coveragesystem, which means that a damaged or lost shipment weighing 500 pounds would have amaximum payout of $500, regardless of value. This is why getting 3rd party insurance on highvalue items is so important!

In Conclusion…

Filing and eventually receiving compensation for a claim on damaged or lost freight is a drawnoutprocess that requires patience above all. It is not uncommon for several months to passbefore the carrier processes a claim. Remember the following steps, and you’re on your way tosuccessfully filing a freight claim!

1. Always inspect your freight at the time of delivery, and sign the POD for any damagethat might have occurred. If the driver is already gone by the time you inspect the freight,contact the carrier or your broker immediately to begin the claim process. Time is of theessence.
2. Take pictures of any damage at the time of delivery. These pictures will be used asproof when you file your claim.
3. Make sure to file your claim using the carrier’s specific instructions. If the claim is filedincorrectly, it could delay your claim approval. Make sure you include pictures, the POD, thecarrier claim document, and any necessary invoices for damage or repair.
4. A few weeks after submitting the claim, check in with the claim department to ensurethat your claim has been successfully submitted and is being worked on. If there is no record ofyour claim, you’ll have to re-file. There’s no way to speed up the claims process once it issubmitted, so patience is key.
5. If you are shipping breakable or expensive items, look into getting third partyinsurance. With a $500 deductible, they are excellent at paying out damaged or lost freightclaims in a timely manner.

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