Freight Liability Claims: What Happens After an Accident

Introduction

An accident involving goods in transit is one of those moments where everything speeds up and slows down at the same time. The immediate priority is safety and preventing further damage. The next priority is protecting your business—because once the dust settles, questions start coming fast: Who is responsible? What does the contract say? What evidence is needed? How quickly do we need to notify the insurer or the customer? And what happens if the cargo owner alleges negligence?

This guide explains, in plain English, what typically happens after a freight accident and how freight liability claims are handled in the UK. It’s written for haulage firms, logistics operators, freight forwarders, and businesses that ship high-value or time-sensitive goods.

What counts as a “freight liability” claim?

A freight liability claim is a claim made against a business involved in transporting, handling, or arranging the movement of goods, alleging that the business is legally liable for loss, damage, or delay.

Depending on your role in the supply chain, the claim might be framed as:

• Carrier liability (e.g., a haulage company moving goods by road)

• Freight forwarder liability (arranging transport, sometimes acting as principal)

• Warehousekeeper liability (storage before/after transit)

• Courier or parcel carrier liability (often with strict terms and limits)

The claim may relate to:

• Physical damage (impact, crush, water ingress, contamination)

• Theft (from vehicle, depot, or during stops)

• Loss (missing pallets, misdelivery)

• Delay (missed delivery windows causing consequential losses)

• Temperature excursions (chilled/frozen goods out of range)

Step 1: The immediate aftermath — safety, scene control, and notifications

After an accident, the first actions you take can significantly affect the outcome of a claim.

Prioritise safety and legal obligations

• Check for injuries and call emergency services if needed.

• Make the area safe (hazard lights, cones/triangles where appropriate).

• Follow any legal obligations (e.g., reporting to police where required).

Protect the cargo and prevent further loss

Insurers expect you to take “reasonable steps” to minimise loss.

Practical steps may include:

• Moving goods to a safe location if possible

• Arranging a replacement vehicle or secure storage

• Covering exposed goods to prevent water damage

• Securing the vehicle to prevent opportunistic theft

Notify the right people quickly

In most freight claims, delays in notification create disputes.

You may need to notify:

• Your transport manager / operations lead

• The customer / cargo owner (or their appointed agent)

• The freight forwarder (if you’re subcontracted)

• The police (theft, serious accidents)

• Your insurer or broker (as soon as practicable)

Tip: Keep notifications factual. Avoid admitting liability at the roadside.

Step 2: Preserve evidence — what you should capture

Evidence is the difference between a clean claim outcome and a long, expensive argument.

Essential evidence checklist

Capture as much of the following as you reasonably can:

• Photos/videos of:

  • vehicle position and damage

  • load condition (before unloading if safe)

  • packaging, seals, straps, load bars, curtains

  • skid marks, road conditions, signage

  • any third-party vehicles involved

• Driver statement (as soon as possible while details are fresh)

• Witness details (names, contact numbers)

• Police reference number (if applicable)

• Delivery paperwork:

  • CMR/consignment note

  • delivery notes

  • manifests

  • seal numbers

• Telematics / tachograph / GPS data

• CCTV (depot, yard, motorway services, customer site)

• Maintenance records (if mechanical failure is alleged)

• Training records (driver competence, load restraint training)

Keep damaged goods where possible

If goods are damaged, the cargo owner or insurer may want to inspect. Disposing of goods too early can lead to allegations that you destroyed evidence.

If goods must be disposed of for safety or contamination reasons, document:

• why disposal was necessary

• who authorised it

• photos before disposal

• disposal receipts and chain of custody

Step 3: Understand the contract — liability often depends on terms

One of the most common surprises after an accident is that “what feels fair” isn’t the same as “what the contract says.”

Key documents that may govern liability:

• Your customer contract / service agreement

• Subcontract terms (if you’re a subcontracted carrier)

• Standard trading conditions (e.g., RHA Conditions of Carriage)

• Forwarder terms (e.g., BIFA Terms)

• International conventions (e.g., CMR for international road carriage)

Why this matters

The contract can determine:

• whether you are liable at all

• the limit of liability (often per kg)

• time limits for notification and claims

• exclusions (e.g., inadequate packaging, inherent vice)

• whether consequential losses are excluded

If you’re unsure what terms apply, gather the paperwork immediately and involve your broker/insurer early.

Step 4: Who might be liable after a freight accident?

Liability isn’t always straightforward. Multiple parties may be involved, and liability can shift depending on who had “care, custody, and control” of the goods.

Potentially liable parties include:

• The carrier/haulier (driver error, load security, vehicle condition)

• The freight forwarder (if acting as principal, or if they selected an unsuitable subcontractor)

• The warehouse operator (handling damage, incorrect storage)

• The shipper/consignor (poor packaging, incorrect declarations)

• The loader (unsafe loading, incorrect weight distribution)

• A third party (another road user causing the collision)

Common dispute scenarios

• “It was packed badly.” Carrier argues inadequate packaging; cargo owner disputes.

• “It wasn’t restrained properly.” Cargo owner alleges poor load security.

• “You delivered late and we lost a contract.” Consequential loss allegations.

• “You left it unattended.” Theft claims often hinge on security procedures.

Step 5: The claims process — what typically happens next

Once the immediate emergency is handled, the claim process usually follows a predictable pattern.

1) Claim notification

A formal claim may arrive by email or letter. It may include:

• description of loss/damage

• value of goods

• supporting documents (invoice, packing list)

• allegation of negligence or breach of contract

Even if the claim looks inflated or unfair, acknowledge receipt and pass it to your insurer/broker.

2) Appointment of a loss adjuster or surveyor

For higher-value claims, insurers often appoint:

• a loss adjuster to investigate liability and quantum

• a cargo surveyor to assess damage and salvage options

They may request:

• evidence listed earlier

• driver interview

• vehicle inspection

• depot procedures (security, loading)

3) Investigation of liability

This is where the insurer decides whether:

• you are legally liable

• liability is limited by contract/convention

• there are defences available

4) Quantum assessment (how much is owed)

“Quantum” is the value of the loss. This may include:

• cost of goods (invoice value)

• repair costs (if repairable)

• salvage value (deducted)

• reasonable mitigation costs (repacking, re-delivery)

Be cautious with consequential losses (lost profits, penalties). Many freight liability policies and trading conditions restrict or exclude these.

5) Settlement, repudiation, or negotiation

Outcomes typically include:

• Settlement (full or limited)

• Repudiation (claim denied)

• Negotiated compromise (common where evidence is mixed)

Step 6: Limits of liability — why “high value” cargo is a special risk

Many freight arrangements have liability limits that can be dramatically lower than the cargo value.

For example, under certain conventions and terms, liability may be limited per kilogram. That means a small, high-value shipment (electronics, medical devices, luxury goods) can create a gap between:

• what the cargo owner loses

• what you are legally liable to pay

• what your insurance will respond to

The “declared value” and “special interest” trap

If the shipper declares a higher value (and pays a higher carriage charge), liability limits may increase. If the paperwork is unclear, disputes follow.

Practical takeaway: have a clear process for identifying high-value loads and confirming whether you’re accepting increased liability.

Step 7: Defences and common reasons claims are reduced or rejected

Not every claim is valid. Common defences include:

• Inadequate packaging (goods not fit for transit)

• Inherent vice (goods naturally deteriorate)

• Act of God / unavoidable circumstances (depending on applicable rules)

• Shipper’s fault (incorrect instructions, misdeclared goods)

• Time-bar (claim made outside contractual time limits)

• No evidence of condition at handover (lack of “clean” receipt)

This is why condition checks at collection and delivery matter. If drivers are rushed and sign paperwork without notes, it becomes harder to defend later.

Step 8: Mitigation and salvage — your duty to reduce the loss

In freight claims, everyone has a duty to mitigate losses.

Examples of mitigation:

• arranging re-delivery of undamaged goods

• repacking and re-labelling

• moving goods to temperature-controlled storage

• selling salvage where appropriate (with agreement)

Document all mitigation steps and costs. Insurers are generally supportive of reasonable actions that reduce the overall claim.

Step 9: What your insurer will expect from you

A freight liability insurer will typically expect:

• prompt notification

• full cooperation and evidence sharing

• no admission of liability without consent

• reasonable loss minimisation

• adherence to your own procedures (security, driver rules)

If procedures exist but aren’t followed (e.g., leaving a loaded vehicle unattended in an unsecured area), insurers may scrutinise the claim more closely.

Step 10: Preventing repeat claims — what to improve after the incident

Even a well-handled claim is disruptive. The best operators treat incidents as a trigger for tightening controls.

Operational improvements to consider

• Driver refresher training (load restraint, reversing, fatigue management)

• Load security audits (strap condition, anchor points, curtainsider practices)

• High-value load protocols (route planning, no-stop rules, secure parking)

• Temperature monitoring (for chilled/frozen goods)

• Subcontractor due diligence (insurance checks, safety records)

• Clear paperwork discipline (notes on damage, seal checks)

Contract and trading conditions review

• Ensure your terms are issued and accepted before work starts.

• Align your customer contracts with your insurance.

• Avoid accepting unlimited liability by accident.

FAQs: Freight liability claims after an accident

Who pays for damaged goods after a freight accident?

It depends on who is legally liable under the contract and applicable rules. In many cases, the carrier may be liable, but liability may be limited. If a third party caused the accident, recovery may be pursued from them.

Should the driver admit fault at the scene?

No. Drivers should focus on safety and factual reporting. Liability decisions should be handled by management and insurers after reviewing evidence.

What documents are usually needed for a freight claim?

Typically: consignment note/CMR, proof of value (invoice), photos of damage, delivery notes, driver statement, and any telematics/CCTV available.

How long do freight liability claims take?

Simple claims can settle in weeks. Complex claims involving disputed liability, multiple parties, or high values can take months.

What if the cargo owner claims for lost profits or penalties?

Consequential losses are often excluded or limited under trading conditions and insurance policies. Each case depends on the contract and the nature of the loss.

Can a claim be rejected if the goods were poorly packaged?

Yes, inadequate packaging is a common defence, but it must be supported by evidence (photos, notes at collection, surveyor findings).

What is “mitigation” in a freight claim?

Mitigation means taking reasonable steps to reduce the loss—such as salvaging undamaged goods, arranging secure storage, or re-delivering quickly.

What if we used a subcontractor?

Liability can still sit with you depending on your role and terms. You may be able to recover from the subcontractor, but you’ll need clear contracts and evidence.

Conclusion

After a freight accident, the claims process is much easier when you act quickly, document everything, and understand what terms govern the movement of goods. The best approach is to treat the first hour after an incident as a structured response: keep people safe, protect the cargo, preserve evidence, notify the right parties, and avoid admissions.

If you’re a haulage firm, logistics operator, or freight forwarder, it’s also worth reviewing your trading conditions and insurance arrangements now—before the next incident—so you’re not discovering gaps when you can least afford them.

Need help reviewing your freight liability exposure or aligning your contracts with your insurance? Speak to a specialist commercial insurance broker who understands logistics risks and claims handling.