How to Settle a Freight Claim

I recently got a call from a customer asking me to help them out with a freight claim. They told me that they were completely dissatisfied with amount of money the freight carrier decided to pay (which was about 10% of the filed amount) and wanted to continue the battle. So I rolled up my sleeves, made a few of phone calls, asked them to fax me documents and emailed a claim expert friends - only to find out that - THEY ALREADY CASHED THE CHECK!!!

Golden Rule #1: If you get a check from a carrier in response to a claim that is less than what you accept, DON'T DEPOSIT IT!

Depositing a check will close the claim forever 99% of the time. Usually the check will even have verbiage near the endorsement spot that states: By depositing this check you accept this claim as closed (or something like that).

But don't feel bad if you have done this. It is actually not that uncommon especially with the automated way company's process checks these days. But this actually brings up another point; that just because a carrier sends a check it doesn't mean the claim is settled and done with.

A claim is not dead until you say it is. The carrier may send you a check in the hopes that you will setlle. In fact, a lot of times they hope the claimant will take the bait.

If this happens, just don't deposit the check and let the carrier know of your unhappiness. Golden Rule #2: The squeakier you are, the more likely you will get your claim resolved to your satisfaction.

If you make it clear to the carrier that you do not accept there resolution to the claim and that you won't stop until you get fair value, than you stand a much better chance in getting what you want. This usually takes a lot of calling, writing and fighting. But sometimes you just need to do that to get what you deserve.

Everybody hates claims, carriers more than anybody. So I am not telling you to start digging up things to start filing. But I am saying that you don't need to settle less than what you expect.

But if you do decide the fight a big battle, make sure you have your facts straight. Carriers have seen it all when it comes to shadiness so if they detect something smelling fishy, you are SOL (Sorry, Out Of Luck!).

Also, there is a governing body called The Transportation & Logistics Council, that will assist in helping companies settle claims through arbitration. This is a non-for-profit organization that can help people out before spending thousands on a lawyer.

The bottom line is that if you feel you are getting hoodwinked on a claim, and you have all of your facts straight, than you will get what you deserve. Don't accept a check for less than what you are due. Just fight for what you deserve and you will get what is due you.

ADVERTISEMENT: With fuel going through the roof, most U.S. companies will are paying 20% more in freight than they did last year. Take your 2007 freight spend, add 20% to it and that how much extra you will be paying this year (not including any rate increases that you already were hit with). Now is a great time to contact George Muha to have LMI perform a FREE Freight Analysis to determine the savings available to your company.