LOGISTICS GUIDE TO INSURANCE
DISCLAIMER:
     This document is a brief overview of insurance with a particular emphasis on Ocean Marine insurance. It is intended solely for the use of clients of Allcovered, Inc.
     Duplication, republication or other dissemination of this information is prohibited.
     This is not a definitive document. I am not an Admiralty lawyer, but offer the following as a brief introduction to the challenges Forwarders and Logistics professionals face and obligations they incur. You must know the rules, regulations and laws that govern Ocean Marine insurance in your jurisdictions. Failure to do so may leave you liable for the consequences of actions or inaction. The information herein has been excerpted from several sources. This information is believed to be accurate but is not guaranteed. You are solely responsible for all legal and moral obligations you incur when you offer Cargo Insurance or other services to your clients. Be sure you understand your rights and obligations.

© Copyright 2003-2006 - Mike Miller - Allcovered, Inc. - All Rights Reserved

If your current insurer is not explaining and teaching what you need to protect your business, please contact us for training, business or logistics coverages:
mike.miller@allcovered.net

Quick Links to Information
Click on the Section Header to jump to that section:

Section

        Subject
1 So What?
2 Know Your Shippers / Consignees
3 Ocean Marine Insurance Overview
4 Ocean Marine Insurance Is Contract Law
5 History of Ocean Marine Insurance
6 Your Responsibilities & Legal Obligations
7 Methods of Managing Risk
8 Field Underwriting
9 Tools & Training
10 Insurance Terms You Should Know
11 Requirements for Insurance
12 What Coverages Do and Do Not Cover
13 Coverage Limitations
14 Claims Management
15 Claims Legal Obligations
16 Claims Documents
17 Summary
 
1)- SO WHAT?
     Why should you care about Ocean Marine insurance?    BECAUSE:

  • When you move goods for another, in today’s world, you risk the future of your business.

  • When you move goods for another you assume legal and financial liabilities.

  • When you offer cargo insurance to your clients you assume all the risks that a trained insurance professional assumes.
 
2)- KNOW YOUR SHIPPERS / CONSIGNEES
     In the aftermath of 9-11 the Security requirements placed on Shippers, Consignees, Carriers, Forwarders, Customs House Brokers and all others involved in the movement of goods have increased dramatically. They will increase even more in the months and years to come.
     I cannot stress strongly enough that any time you move goods on behalf of another, you risk the future of your business. The goods you move need not be items linked to terror for your business to be hurt. This is not an overstatement, as the following example shows.

Iraq 2004

9-11
September 11, 2001

EXAMPLE:
     It is common practice for a Shipper to load containers, and for the Forwarder to handle the paperwork.
     If the Shipper mis-identifies goods in the container, and Customs inspects that container, the Forwarder or firm issuing the Bill of Lading faces fines that begin at US$ 5,000.
     In addition, the forwarder and issuer of the Bill of Lading will be flagged in Customs’ systems so all future shipments face a much greater chance of inspection.
     When Customs destuffs a container to inspect the contents Customs is under no obligation to repack the container carefully… thus, from my observation, about one-third of Customs inspected containers face cargo damage.
     So if you do not know your Shipper well enough, or if your Shipper is careless in specifically identifying the cargo and the above occurs:

q     Your future shipments for all clients will be delayed for inspection.

q     One-third of your future shipments that are inspected will have a cargo loss.

q     Your clients are likely to go to another Forwarder that can move goods faster with less cargo damage.
QUESTION: How long will your Shippers stay with you if their shipments are always delayed and about one-third arrive damaged?
QUESTION: Do you know your Shippers well enough to risk your future business for them?
     If the answer is “No,” then I strongly urge you to either get to know your Shippers well enough to trust them this well, or, if the Shipper refuses to work with you, find another client.

NOTE:   Effective 9 March 2006 Export Violations fines are now up to $50,000 per violation. Congress is expected to pass legislation that will raise fines and penalties for Export violations to $500,000 per violation PLUS criminal penalties of either $5-million per occurrence, or 10-times the value of the goods, whichever is greater, PLUS up to 20-years in jail per violation.
     This is not fun and games anymore. No one is joking. No one is going to give you a break.
     Know Your Shippers AND make sure they know the new rules and regulations.
 
 
3)- OCEAN MARINE INSURANCE OVERVIEW
     This document is designed to give you a brief overview of your rights and responsibilities under the category of coverage known as Ocean Marine Insurance.
     There are many types of insurance. Property & Casualty insurance covers buildings, automobiles, and the liability businesses and individuals have for incidents that may occur on their property. Life, Accident and Sickness insurance covers human beings or groups. In the US and in most jurisdictions around the world, an agent must be licensed to sell P&C or LAS insurance.
     Ocean Marine is a type of insurance. Freight Forwarders offer Cargo Insurance to their clients through "Ocean Marine" policies.

An Ocean Marine policy can cover goods moving by air, sea, land or any combination thereof.
     Because goods covered by Ocean Marine cargo insurance may travel through many different countries or governmental regions, it is impractical for each state to impose its own special terms or conditions, as this would hamper the free and rapid movement of goods. Because of this, Ocean Marine insurance is usually unregulated by governmental agencies (check with your insurance regulators).
     Ocean Marine insurance is governed exclusively by the Standard and Special Conditions of the insuring contract, and by the wordings of applicable international treaties such as those from the International Chamber of Commerce known as the Institute Cargo Clauses.
     The insurance Certificate and its applicable wordings are a Contract. That means the requirements for a legal contract must be met by all parties. Because marine insurance is governed by the idea of “Uberimma Fides” or “Utmost Good Faith,” the ethical requirements on all parties are more stringent than in many other types of contracts. Failure can mean a policy is void.
     Because Ocean Marine insurance is unregulated in most jurisdictions, most Forwarders who market Ocean Marine Cargo insurance need not be licensed by authorities as other insurance agents are. Be sure you know and follow the laws for your jurisdiction.
     But, as with any service offered to the public, a Forwarder or anyone who offers Ocean Marine insurance incurs legal obligations to the Insurer, to the person purchasing the insurance, and to any carrier involved in the movement of the goods insured.
 
4)- OCEAN MARINE INSURANCE IS A CONTRACT

As with any legal contract, four essential elements must be satisfied for cargo insurance to be in force:

1)- Agreement (There must be an offer and acceptance)

2)- Consideration (Each party must give something of value)

3)- Competent Parties (Parties making offer and accepting must be legally capable of doing so)

4)- Legal Purpose (Valid contracts must be for a legal purpose and consistent with public policy)
 
5)- HISTORY OF OCEAN MARINE INSURANCE
     Depending on the source of information, the earliest known historical references to cargo insurance date back either to the Chinese, or to the time of the Phoenicians.
     At first, merchants began managing risk through Reduction. Rather than load each of four ships headed to a similar destination with the entire cargo of different individual owners, 25-pct of each owner's cargo was placed on each ship. In this manner, the loss of any one ship would not result in any owner's total loss.
     The concept of Sharing risk through General Average was developed by the Phoenicians 3,000 years ago. Under General Average, those whose cargo survives a voyage are assessed to repay the loss of another shipper whose cargo may have been jettisoned or lost for the protection of the vessel and the load remaining.
     The Italians and the Lombard League first began insuring cargo in the sense we know it today in the 1200’s.
     In the 14th and 15th centuries this concept became more formal and more regular, led by members of the Hanseatic League.
     During the 1700’s individuals began insuring the risk to cargo of voyages. Voyages were written on a board in Lloyd's coffeehouse in London. Individuals willing to assume a portion of a voyage's risk would write their names under that voyage, and the percentage of the risk they were willing to accept.
     Thus the term "Underwriter."
 
6)- YOUR RESPONSIBILITIES & LEGAL OBLIGATIONS

     As a Forwarder you have a fiduciary (legal and ethical) responsibility to the Insurer and to those you offer Ocean Marine cargo insurance. A "fiduciary relationship" is developed when a person relies on, or places confidence, faith or trust in another person's advice, or actions, particularly when finances or assets are at stake.
To Your Client:
   As a Forwarder, if your actions lead to a loss for your client that your client had not foreseen, or a risk your client had not accepted, you may be held liable.

To Your Insurer:
   As a Forwarder you have a fiduciary responsibility to handle to handle all transactions involving the Insurer responsibly, ethically, to keep records, and to remit premiums when due. If your Shipper has claims or losses, or had special terms imposed, or had insurance refused by any other insurer, you are obligated to notify Underwriters or insurance coverages and claims may be affected.

The Insurer to the Insured and its Investors:
   The Insurer has a 50-50 responsibility to the person who bought the insurance and to its stockholders whose money is at risk.
   An insurer will pay any legitimate claim.
   BUT the Insurer must have all required documents to prove the claim is owed so that they can show their stockholders... those whose money is risked... that any claim paid was owed.
     Failure to place insurance when requested may result in you as the Forwarder being held liable for any loss or claim.
    There may be additional obligations, legal or moral, incurred.
 
7)- METHODS OF MANAGING RISK
AVOIDANCE AVOIDANCE of risk may be accomplished by removing a hazard, engaging in an alternative activity, or otherwise ending a specific exposure.
REDUCTION REDUCTION of risk reduces the probability or severity of a possible loss.
RETENTION RETENTION of risk occurs when the client or prospect assumes a risk without purchasing insurance, or through the use of deductibles.
TRANSFER TRANSFER of risk is an option that includes, but is not limited to, insurance.
SHARING SHARING of risks is actually a variation of the retention concept.
 
8)- FIELD UNDERWRITING

     Field Underwriting is the process of screening out unacceptable risks.
     You do this every day when prospecting for clients. When you see or sense something is wrong, you correct the problem or walk away.
     The first step to dealing with risks is to identify and analyze loss exposures and then evaluate alternatives to dealing with them.
     As a Forwarder, keep in mind the economic realities and the best interests of your client.
     It is often advantageous to avoid or reduce risks. You should encourage objective and well-informed decisions by your clients based on a complete understanding of the coverage, versus the probable and the possible financial impact of assuming the risks. If you have explained the exposures to your client, and the client refuses insurance, responsibility for a loss rests with the client. This means you must understand what any insuring contract does and does not cover. The wordings of the insuring contract define these limits.
     Analyzing risks and exposures, taking steps to avoid or reduce risks, considering loss control efforts, and submitting risks properly to markets, are all a part of Field Underwriting.
     Accepting poor risks prone to losses is known as "Adverse Selection." Avoid "Adverse Selection." Insurance can only work when risks are distributed fairly.

     If you offer cargo insurance to your clients, you accept the responsibility to the Insurer to avoid "Adverse Selection" of poor risks with higher chances of loss, unless those higher risks are communicated clearly and fully to the Insurer. With complete information the Insurer may make an informed decision on whether or not to accept the risks involved and, if so, under what terms and conditions.
      Failure to alert the insurer of a Shipper's prior losses is a “Material Breach” of your contract, defined as: “a breach serious enough to destroy the value of the contract.”
     Claims Management is a part of Field Underwriting. Be careful to follow the instructions given you precisely. All rights to the determination of the settlement of a claim reside with the Insurer or its assigned representatives.
     If you are not sure what to do, contact your Agent, Underwriters, or the Claims Office of the Insurer and allow them to direct your efforts. Failure to follow instructions correctly may adversely affect claims settlement.
     Failure to properly oversee and manage a claim may leave you exposed to financial obligations.

NOTE:
   It is our strong recommendation that, for your own protection, if your client refuses insurance you would be wise to have a record of such refusal in writing. In the event of a claim, it is unlikely you would be held liable for the loss, for you would have a written record that the client refused coverage.
   (See “Useful Forms/Letters” at www.allcovered.net).

EXAMPLE:
   Field Underwriting is Critical to the health of your business.
   You could be liable for damage to a shipment even if you insure the cargo.
   Let's imagine that a client delivers a last-minute shipment to you only two hours before the flight it must move on. This situation is a daily occurrence for many Forwarders.

q       Let's assume the shipment is poorly packed and you tell the Shipper the packing is bad.

q     The client insists you must accept the goods and move the goods on time or lose the account.

q     The client requests and pays for insurance.

q     You move the goods and the goods arrive damaged

q      The surveyor reviews the damage and cites poor packing as the reason for the claim/damage.

q     The insurer can, at its discretion, refuse payment because the packing was not acceptable.

q     The Shipper may be able to hold you liable for the damage because you accepted the shipment.
 
9)- TOOLS AND TRAINING
COVERAGE COMPARISONS      A comparison of basic coverages is available at www.allcovered.net under the link “Compare Clauses Cover.”
TERMS & CONDITIONS DEFINED & EXPLAINED      Definitions of almost 3,500 transport and insurance terms are available under “Ocean/Transport Terms” at www.allcovered.net.
ELIMINATING MISUNDERSTANDINGS      A sample of a letter we suggest you send to all Shippers requiring that they give you explicit instructions on how to handle insurance for their goods is available at www.allcovered.net under “Useful Forms/Letters.” This transfers responsibility for the decision on when to place insurance to the Shipper (provided you follow their instructions) and eliminates many opportunities for misunderstandings that may lead to uncovered claims.

     Failure to outline possible exposures to your client
might result in a claim of "Omission" against you.
 
10)- INSURANCE TERMS YOU SHOULD KNOW

This is a partial list only – a comprehensive list of Insurance Definitions
is available at www.allcovered.net under the link “Ocean/Transport Terms”
INDEMNITY

   Ocean Marine Cargo insurance is written on an indemnity basis.
   The intent of indemnity is to make someone "whole" again by paying actual damages to the cargo, while preventing any gain.
   Under the principle of Indemnity, insurance is designed to restore the policyholder to the same financial condition enjoyed prior to a loss, subject to the terms and conditions of the insurance purchased.
   Ocean Marine policies are most often written on a “stated value” or “declared value” basis, meaning the insurer will pay actual damages, or the stated value of insurance purchased, subject to the conditions and deductibles of the insurance.
SUBROGATION    Subrogation applies when a third party caused a loss or was primarily responsible for it through negligence.
   A loss victim usually has legal recourse against a party at fault.
   Subrogation transfers this right to the insurer when a loss is paid, but only to the extent of the insurance payment.
   Failure to protect the Insurer's Subrogation Rights can adversely affect claims settlement.
CARE, CUSTODY & CONTROL    Ocean Marine insurance covers shipments while they are under the "Care, Custody, and Control" of the Forwarder while the purchaser of the insurance (Shipper, Consignee or other party) retains an Insurable Interest in the goods covered subject to the Incoterms.
   (See Coverage Limitations).
WARRANTY    A statement in any Ocean Marine insurance document, whether application, claim, or other communication, submitted by an Insured, whether by the Forwarder or the person insuring the cargo, is warranted to be TRUE IN ALL RESPECTS. IF UNTRUE IN ANY RESPECT, even though the untruth may not have been known to the person giving the warranty, the CONTRACT MAY BE VOIDED whether or not the untruth or inexactness was material to the risk.
ACTUAL CASH VALUE    The sum of money required to pay for damages or lost property, computed on the basis of replacement value less its depreciation by obsolescence or general wear.
NOTE: Ocean Marine insurance covers the value of the goods for their replacement or declared value or to the limits of the insurance, whichever is less.
   It is reasonable and customary in Ocean Marine insurance to insure cargo for CIF+10%. CIF+10% means insuring the shipment for the Cost of the goods, the cost of the Insurance, the cost of the Freight, and an extra 10-pct. of the total value for lost time, paperwork, and trouble.
INCOTERMS    All Ocean Marine insurance is governed by the sales contract.
   When ownership of goods changes hands, insurance begins or ends unless prior arrangements have been made with the Insurer.
   There are 13 widely used and internationally approved Incoterms. Incoterms delineate where responsibilities of Shippers, Sellers, Buyers and Consignees begin and end.
   Incoterms wordings are available from the International Chamber of Commerce.An overview is available in our Ocean Marine Brochure, on the agency's web site, http://www.allcovered.net, or from http://www.incoterms.org.
GENERAL AVERAGE    Under General Average, those whose cargo survives a voyage are charged to repay the loss of another shipper whose cargo may have been jettisoned or lost for the protection of the vessel and the load remaining.
   Any shipper whose cargo arrives intact when others' was lost may face a General Average charge. Insuring cargo under the minimum, "Institute Cargo Clauses C" will cover General Average claims.
   EXAMPLE: You could ship $5000 worth of waste paper yet be faced with a $150,000 General Average claim for cargo lost by others. ICC Clauses C minimum insurance covers this.
COINSURANCE    In property insurance, a clause under which the insured shares in losses to the extent that he is underinsured at the time of loss.
   Ocean Marine shipments are subject to the Co-Insurance Clause.
EXAMPLE: If goods are worth $100,000; If the goods are insured for $50,000; and there is a $40,000 loss: Then the Insurer will pay only $20,000 for the loss. Goods were insured for half their value, thus settlement is made at half the loss.

RISK is the uncertain potential for loss.
PERILS are things that cause losses.
HAZARDS are catalysts that trigger or advance perils.

MORE>

 3,500 Shipping / Transport / Insurance terms and abbreviations are available at www.allcovered.net under the link "Ocean/Transport Terms"
 
11)- REQUIREMENTS FOR INSURANCE
INSURABLE INTEREST:
   In order to purchase insurance, one must have an insurable interest in the subject of the insurance. Insurable Interest exists ONLY when three conditions are met.
   The insurance applicant must:

1)- Face a personal risk of loss.

2)- Have a legitimate financial interest in the property being insured.

3)- Not achieve a potential gain due to the insurance applied for.
 
12)- WHAT COVERAGES DO AND DO NOT COVER
NOTE: This is a broad and brief overview of types of insurance. Read and understand your coverage benefits and limits. If you have any questions, never hesitate to ask.
NOTE: All coverages described briefly below are subject to the wordings of the insurance contract, the limits of the coverage purchased, and any applicable governing laws or treaties.
OCEAN MARINE CARGO

   Covers cargo while it is under the care, custody and control of the purchaser of the insurance or insured’s designated agent (such as a forwarder) subject to the insuring terms, the Incoterms, and the limits of the contract
          IN  GENERAL  TERMS:
   ICC Clauses A covers everything except what it specifically excludes, which are losses attributable to “War” or “Strikes.” Thus combining Clauses “A, War & Strikes” with the Standard Conditions of insurance provide what is usually referred to as “All Risks.”
   ICC Clauses C covers nothing but what is specifically says it covers.
   Read the precise wordings to be sure of the coverage
OCEAN MARINE CARGO
DOES COVER:

  • Goods in transit subject to wordings

  • Losses/Damage to insured cargo subject to contract wordings

  • General Average Claims (see General Average above)

  • Replacement parts to repair damaged insured goods
DOES NOT COVER:

  • Goods in storage unless that storage is part of a transit such as over a weekend ahead of an early-week delivery

  • Cost of expedited shipment of repair parts for damaged goods.

  • Loss caused because a shipment is late or guaranteed delivery times. These are "Consequential Loss" coverages, a different type of insurance, designed to insure against delay.
WAREHOUSE    Warehouse insurance covers goods while stored or held for another.
BILL OF LADING (CARGO) LEGAL LIABILITY    Covers exposure if a mistake is made, or an accident occurs during movement of goods.
ERRORS & OMISSIONS    Covers your exposure if a mistake in paperwork is made, such as failure to place insurance for a client that requested it.
NOTE: We are seeing many insurers change wordings to specifically EXCLUDE failure to place insurance as a recoverable claim. Read your policy carefully.
 
13)- COVERAGE LIMITATIONS
     There are three key words affecting the insurance coverage Forwarders and Logistics professionals place for their clients, "Care, Custody & Control." Like all Ocean Marine coverages, this insures cargo for your clients while the cargo is in your care, custody or control.
   The extent of coverage is governed by the Insurance Contract, the Sales Contract and the Incoterms 2000.
   For your reference, an overview of the Incoterms is included in our Ocean Marine Brochure and on our agency web site: http://www.allcovered.net
   Detailed wordings are available at http://www.incoterms.org.

EXAMPLE:
   If you handle the logistics for a Shipper and the sales contract is FOB, the insurance coverage ends once the goods are Free On Board unless you have prior approval from Underwriters.
     Under an FOB sale, if you have handled the logistics of the shipment all the way from Shipper to the Consignee, and if the Consignee wishes you to insure the cargo, then you need to make sure, via email or typed on the Certificate Request, that Underwriters are aware you are handling the logistics on past the point where ownership of the goods change hands, and that you need for insurance cover to continue on.
     This may require that you purchase one insurance policy for the movement when the Shipper owns the goods… up until they are Free On Board… and a second insurance policy on behalf of the Consignee when the Consignee assumes ownership of the goods from the point where they are Free On Board until they reach their final destination.

NOTE:
   These limitations have always governed the extent of ocean marine insurance coverage. If, in the past, you may have had a claim paid with the words "Without Prejudice." "Without Prejudice" means the insurance company "technically" did not owe the claim, and could have declined to pay, but paid as an act of good faith because your intent was for the coverage to be in place. By paying “Without Prejudice” the insurer reserves the right to decline any future similar claim… and is declaring that no legal precedent is set by paying this one claim “Without Prejudice.”
     By being mindful of the Sales Terms and Incoterms we can eliminate this confusion.
     Being careful in this way may eliminate potential problems in case of a claim.
 
14)- CLAIMS MANAGEMENT

     No claim can be processed until ALL information is gathered.

     Only the Insurer or its designee has the legal authority or right to make any statement regarding the settlement, speed, or actions regarding any claim.

     The Insurer has a legal obligation to pay any legitimate claim according to the terms and conditions of the coverage purchased.

     The Insurer also has a legal obligation to its stockholders not to disburse settlement funds until all the facts are known, and a reasonable determination of a claim’s validity can be made.

   Ocean Marine insurance claims often must be settled within 12 months, or they may face what is known as a "Time Bar" at which time the coverage is considered void. Know your coverage.

NOTE: Each claim is unique. I have had simple claims settled within three weeks of their being reported. I have had claims that took over a year to be settled. Following procedures speeds settlement. Confusion slows the process, for each person involved with the claim must be certain of the accuracy of the information they pass along, they must “Warrant” its accuracy, or they may be legally and financially liable for any error.
 
15)- CLAIMS LEGAL OBLIGATIONS

     Please keep in mind that the Forwarder, the Consignee, the Shipper, the Agent, the Claims Adjuster, the Surveyor, Claims Office personnel, and others involved with the processing of any claims have fiduciary responsibilities to make sure they have complete, total, and accurate information.

     All must "Warrant" that any information they provide or disburse is accurate.
     They may be held legally and financially liable for any incorrect information.
     The facts provided by you as Forwarder are "Warranted" to be accurate.

     Therefore, the claims process can be slowed when any one link in the chain is not providing, or is waiting for, facts, evidence, or documents… or when facts provided are contradictory, confusing, or questionable.
     Each person in the chain of steps in the processing of a claim can be legally liable for the accuracy and completeness of any information they gather, provide, or process… and must be careful.

1- When your client notifies you of a possible claim, be careful that you follow the instructions on the "In Case of Damage" page of the insurance Certificate. Failure to exactly follow all the instructions may negatively affect claims payment.

2- Remind your client/shipper to follow all instructions on the "In Case of Damage" page of their Certificate of Insurance.

3- If you use our Internet-based cargo insurance service, we require that you report claims. Log into the site with your User-ID and Password and choose "File a Claim" from the menu. Give us all information you have. Additional information can be added later. Until you "File A Claim" online, Underwriters and Claims office are not aware of the claim.

4- For all claims with estimated damages in excess of USD 1,000.00, you or the claimant MUST call the surveyor listed on the Certificate, or any Lloyd’s Approved Survey Agent. A list of all Lloyd’s approved Survey Agents is available through our web site: www.allcovered.net under the link “Lloyd’s Surveyors.”

5- Within two business days you should receive an email from Claims Office detailing what information is needed and what steps are required to process the claim.

6- If you have any questions about what to do, contact Claims Office for an official ruling on how to proceed. hooper@aciscargoinsurance.com

7- In Case of CONCEALED DAMAGE:

  • Sometimes a box may not be damaged, but goods within are broken.

  • Follow directions on the "In Case of Damage" page of the Certificate.

  • Cease unpacking immediately.

  • If damage is valued at more than USD 1,000.00, call Surveyor.

  • Retain all packing material from the box or container that held damaged goods.

  • Notify carrier(s) of damage within 3 days of delivery. (sample “Hold Carrier Liable” letter at www.allcovered.net under “Useful Forms/Letters”)

  • If at all possible, take pictures to document damage.

  • Notify Forwarder/Insurer immediately so they can begin to process the Claim.

8- Always follow the instructions of Claims Office. They take precedence over anything written here, but I offer this as a guideline. I have found it seems to work best if you obtain ALL documentation requested. Once you have gathered all of the information Claims Office has requested, I suggest you make one copy for your files, make one copy for me to place in your files at Allcovered, and send the original documents and documentation you have collected to Claims Office. This eases claims processing and speeds settlement. When information arrives in several installments, it is easier for documents to be misplaced or misfiled.
 
16)- CLAIMS DOCUMENTS
   All claims are unique and may require special documents. Claims Office will notify you of the information and documents they require for each specific claim.

For your reference, these documents are needed for most claims:

  • Printed copy of the Certificate of Insurance

  • Supplier's Invoice (itemized value)

  • Packing List

  • Bill of Lading / Consignment Note

  • Delivery Receipt / Proof of Delivery noting damage

  • Claim on Carrier holding them liable (sample "Hold Carrier Liable" letter at www.allcovered.net under "Useful Forms/Letters"

  • Carrier Response letter
 
17)- SUMMARY

     As a Forwarder offering cargo insurance to your clients, you assume the role of Agent on behalf of both the Insured and the Insurer with all the legal and moral obligations stated and implied in such a relationship.
     Be sure you understand and are comfortable with these requirements.
     You may be legally liable for any errors, omissions, or mistakes.
     At the Allcovered we work hard to show you all avenues of risk, the exposures you face, and courses of protection open to you.
     We provide information and training, through documents like this one, our weekly newsletter and other methods. It is our way of helping you stay ahead of your competition and grow your business.
     We hope you agree that we go much farther than our competition in our service to you.
     We want to earn YOUR business.
 
 
Are Your Current Insurance Providers Helping You Like This?
     At Allcovered we provide information and training, through documents like this one, our weekly newsletter and other methods.
     It is our way of helping you stay ahead of your competition and grow your business.
     We hope you agree that we go much farther than our competition in our service to you.
     We want to earn YOUR business.

AllCovered.net...     We have logistics allcovered
 
 

 

Contact Us

Mike Miller
Managing Director - Allcovered.net
(Ocean Marine Division) Allen Insurance Group
Voice: +1.478.825.5566 x150
EFax: +1.419.715.4723
Email: mike.miller@allcovered.net

 

LAST UPDATED:
08/27/2007 15:27:16

Hit Counter