Freight and cargo claims

A cargo claim is an allocation exercise. The bill of lading, the contract of carriage, the applicable liability limit and the carrier's insurance together decide who ultimately absorbs the loss — and the paperwork is usually more important than the physical facts of the damage.

You may need a lawyer if…

  • A shipper or broker has presented a claim for loss, damage or delay
  • Your insurer has denied or reserved on a cargo claim
  • A load was refused on delivery and disposal is in dispute
  • You are being asked to indemnify beyond the declared value
  • A theft or hijacking claim is in issue
  • Temperature-controlled freight was rejected

How we can help

  • Assessment of liability under the bill of lading and the contract of carriage
  • Response to and negotiation of cargo claims
  • Coverage disputes with cargo insurers
  • Recovery against warehousemen, subcontracted carriers and brokers
  • Litigation of contested claims
  • Review of contract terms to control future exposure

What happens next

  1. We collect the bill of lading, the contract terms and the claim documentation.
  2. We identify the applicable liability regime and any limitation of liability.
  3. We assess coverage and put the insurer on notice properly.
  4. We respond to the claim or advance the recovery.
  5. We close the loop on the contractual terms that produced the exposure.

What to bring

  • Bill of lading and delivery receipt
  • The claim as presented, with supporting valuation
  • Photographs and inspection or survey reports
  • Your cargo policy and any correspondence with the adjuster
  • The broker-carrier agreement or contract of carriage

Questions clients commonly ask

Who is liable when freight is damaged?

Liability usually starts with the carrier in possession, subject to the terms of the bill of lading, statutory or contractual limits of liability, declared value, and defences such as inherent vice or shipper loading and packing.

Does a declared value change anything?

It can. Liability limits frequently operate by weight unless a higher value has been declared and the corresponding charge paid.

Should the claim be reported to the insurer even if it looks small?

Policies commonly require prompt notice, and late notice is a recurring basis for coverage disputes. Notice and admission of liability are different things.

This page provides general legal information about Ontario law. It is not legal advice, and reading it does not create a solicitor-client relationship.

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Facing a regulatory or commercial transportation issue? Speak with counsel.

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