Why Insurance ?As your logistics provider, Samuel Shapiro & Company, Inc. wants to
ensure you receive the best possible service in all aspects of the
movement of your freight. An integral component of our service is to
make sure you are aware of the need to properly insure your cargo
during transit and to provide you with a competitive and
comprehensive insurance program.
While we always handle your goods with the utmost care, there are
problems inherent in the transportation process that may cause
losses beyond our control. For example:
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Lloyds of London recently reported that on average, one ship sinks
every day.
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Due to regulatory changes in the industry such as, Montreal Protocol
No. 4 and the Ocean Shipping Reform Act, transportation as we know
it is not the same and Carriers liability is constantly changing.
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Some goods are simply prone to loss simply by their nature. In fact,
approximately 35% of losses in transit are unavoidable due to the
rigors of transit (moving, shifting, bad weather, extensive
handling, etc.).
There are certain benefits to obtaining insurance coverage
through Shapiro.
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We purchase large volumes of insurance, which allows us to obtain
competitive rates.
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We work with a “transportation insurance broker;” therefore, we are
often able to insure “high risk” commodities.
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If there were ever a claim, it would be
filed and processed in
the U.S. It is much easier to communicate claim information
within the U.S., then to go back and forth with an overseas party.
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We will file all claim documentation on our customer’s behalf. In
addition, we would follow through until a decision regarding the
settlement was reached.
We realize that there are some common misconceptions and/or
reasons many importers believe that insurance is not a necessity.
1. Some believe that their cargo is covered under the ocean or
air carrier’s insurance policy. As a result, they don’t need any
additional insurance coverage”.
In actuality:
Carriers limit their liability in the event of a loss.
In most instances, the limited liability amounts will not cover the
value of the customer’s shipment.
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If shipping via ocean, they will only pay $500 per package or
customary freight unit
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If shipping via air, they will only pay $20.00 per kilo (actual
weight)
None of the carriers will pay for a loss, under their
limited liability coverage until the customer can prove all of the
following:
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What the loss is (i.e. the cause of loss and the dollar amount). In
some cases, the customer would be required to hire a surveyor to
make this determination. This would be at the customer’s expense.
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The loss occurred while the goods were in the carrier’s possession
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The loss was a direct result of the carrier’s negligence
None of the carriers will pay for a loss, unless
they are notified within the strict timeframes, as outlined below:
Ocean Shipments
Visible Loss/Damage: Immediately
Non-visible (hidden)/concealed Concealed Damage: 3 days (from date
of delivery)
Limitation of Action: Suite filed within 1 year from date of
delivery (If the date of delivery is unknown, use the B/L date as
reference).
Air Shipments
Damage: 7 Days (from date of delivery)
Hidden/Concealed Damage:14 days (from date of delivery)
Non-Delivery”120 days (from date the air waybill was issued)
Limitation of Action:Suit filed within 2 years from the date of
delivery (If the date of delivery is unknown, use AWB date as
reference)
2. Some believe that their company provides its own insurance.
In actuality:
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We purchase a large volume of insurance, and therefore
our rates are very competitive.
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Handling the claim on your behalf will also save you
time and money.
3. Some believe that CIF terms are protective in that
shipments are being insured overseas.
In actuality:
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The overseas shipper is only obligated to provide
minimal coverage.
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If there were a claim, they (the importer) would be
filing and coordinating the claim with an overseas insurance agency.
Please take a moment to review the following information on the
Insurance coverage we can provide to you. We encourage you to take
advantage of our cargo insurance program and make sure your goods
are protected against the perils of transit. Please do not hesitate
to contact us with any questions you may have.
