The less-than-truckload (LTL) transportation market is shifting under shippers’ feet. As carriers tighten liability limits or eliminate coverage altogether, freight is being left dangerously underprotected. If you rely on carrier liability alone, you may be exposed to losses far beyond what you can recover.

What’s happening with LTL liability?

At the June 2025 ULTL Live conference in High Point, NC, industry leaders made the trend clear. Some LTL carriers are reducing liability limits. Others are dropping them completely. The driver is cost control: carriers want to cut exposure and protect their margins.

For shippers, that creates a blind spot. A carrier that once offered $2.00 per pound may now only cover $.50 per pound—or nothing at all. That leaves a serious gap between your actual loss and any payout.

This is not just theory. Major players on the Transport Topics Top LTL Carriers List* publish their own rules, exclusions, and limits. These can change without notice, leaving shippers with inconsistent and shrinking protection.

The limits of LTL carrier liability

Carrier liability is not true insurance. It is a conditional promise to pay, capped by weight, class, and carrier rules. Even when a claim is accepted, the payout is slow and often incomplete.

• Restricted coverage: Liability rarely reflects invoice value.
• High denial rates: Packaging issues, weather, or “inherent vice” can void claims.
• Delayed resolution: Even approved claims can take weeks or months to settle.

When claims drag (or fail outright) customers are left waiting and relationships are put at risk. For a deeper dive into these limitations, see the SMC³ LTL Insurance Guide.

Why is Shippers’ Interest is the better tool?

Shippers’ Interest insurance closes the liability gap. Unlike carrier liability, it protects you directly:

• Full-value coverage: Pays the invoice value, including freight charges and markups.
• First-party protection: You are the insured, not the carrier.
• Faster claims: Payment is triggered by loss, not legal debates over fault.
• Customer confidence: Quick resolution reduces delays and brand damage.

Who should be paying attention?

If you ship via LTL, you need to take note especially if you move high-value freight, fragile or perishable goods, or time-definite or customer-critical loads. Freight brokers arranging LTL shipments, and e-commerce or manufacturing businesses scaling fast, should also act now.

A red flag moment

LTL carrier limits are falling. Shippers and brokers cannot afford to rely on outdated assumptions about liability. The result is lost revenue, strained customer relationships, and damaged reputations.

Our advice: whether you are quoting freight or building shipping technology, make primary, all-risk coverage available at the point of transaction. Embedded, on-demand solutions, like Loadsure’s integration with MyCarrier, make it possible to secure protection in seconds.

Conclusion

As LTL carriers retreat from risk, shippers must take control of theirs. Shippers’ Interest coverage is no longer optional. It is a critical safeguard for margins, freight, and customer trust in today’s market.

If you want to protect against shrinking LTL liability limits, fill out the form below to connect with our team. We’ll show you how Shippers’ Interest coverage can safeguard your freight, margins, and customer relationships—so you stay in control when carrier liability falls short.

*The Transport Topics top LTL carriers include FedEx Freight, Old Dominion Freight Line, Estes, XPO, R+L Carriers, TForce Freight, Saia, ABF Freight, Central Transport, and Southeastern Freight Lines.