For glass distributors navigating global shipping routes, freight insurance is more than a checkbox — it’s a critical line of defense against financial loss. Unfortunately, many companies either misunderstand their coverage or assume they’re protected when they’re not.
Here are the most common freight insurance myths that cost glass distributors time, money, and reputation — and how to avoid falling for them.
Myth 1: “The Carrier’s Liability Covers My Shipment”
Most freight carriers operate under limited liability rules based on weight, not value. For example, under the Hague-Visby Rules, an ocean carrier may owe just a few dollars per kilogram of damaged cargo — a fraction of the replacement cost for a shipment of architectural glass.
Reality: Carrier liability is not insurance. If a container of tempered glass breaks in transit, your compensation from the carrier may cover less than 10% of your actual loss.
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Myth 2: “All-Risk Insurance Covers Every Scenario”
“All-risk” policies sound comprehensive, but they include exclusions. Common exclusions include:
Improper packaging
Inherent vice (e.g., defects in the glass itself)
Delays without physical damage
Glass distributors must understand the fine print and work with brokers who understand specialized freight risks for fragile products.
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Myth 3: “My Supplier or Customer Has It Covered”
In many FOB or CIF agreements, the assumption is that one party is handling insurance — but if terms aren’t clearly defined, both sides may underinsure or overlook the coverage entirely.
Reality: Always confirm who holds the insurance, what it covers, and whether it aligns with the Incoterms on the contract.
Myth 4: “Small Shipments Aren’t Worth Insuring”
Even LTL or pallet-size shipments of specialty glass can be high value. A cracked custom IGU (insulated glass unit) may cost thousands to replace — not to mention the project delays it causes.
Tip: Insure every shipment based on its value and delivery criticality, not just size.
Final Thoughts
Freight insurance isn’t a one-size-fits-all solution — especially in glass logistics. Understanding coverage details, avoiding assumptions, and working with experts can protect your margins and your reputation. Don’t let myths become expensive mistakes.
