Is Your Freight Protected from Risk?
Risk is part of doing business, cargo insurance will minimize that risk and keep the flow of goods moving. In a global economy, any multinational company needs to protect its goods in transit to stay competitive. Whether you ship by land, sea or air, our cargo insurance coverage provides solid protection from the moment your goods leave the warehouse until they arrive at destination.
Ocean, air and ground carriers are legally required to carry a minimum amount of insurance. Keep in mind that this insurance provides limited coverage. This required insurance, referred to as “carrier liability,” is limited to 10 cents per pound of the shipment. This carrier liability cannot exceed the invoice value of your shipment.
Additional Cargo Insurance
Because freight is more susceptible to damage than smaller shipments, you may want to purchase additional insurance to cover your items. Keep in mind that freight insurance can be purchased from a variety of third-party companies which offer coverage that exceed carrier liability.
We understand the issues that impact your business, including just-in-time delivery, supply chain complexities and business interruption exposures. We tailor our terms and conditions to suit specific transportation or protection needs—including exhibitions, product installation, sales samples, storage at locations and marine business interruption.
Red Arrow can provide additional cargo insurance for almost any situation or load. Contact us today!
Why Place All Risk Cargo Insurance?
All Risk cargo insurance greatly reduces your financial exposure, covering more situations and paying out more than any other type of insurance.
What Financial Exposures are Covered:
- Cost of customer’s goods
- Cost of insurance paid to cover the goods in transit
- Cost of the freight, packing, and other charges paid
- Cost of preparations to insure cargo is prepared to withstand the rigors of transit
- 10% added on to cover unseen costs that may be incurred if a claim occurs.
When Does Cargo Coverage Begin?
Coverage starts from the moment the cargo commences transit from point of origin, shipper’s warehouse/location, or as instructed by the customer.
When Does Cargo Coverage End?
When coverage ends is determined by the customer – it can end at any of these times:
- When cargo reaches the destination consignee and/or warehouse,
- When the cargo reaches the port of discharge – Ocean
- When the cargo reaches the airport of destination – Air
- When the cargo reaches the port of origin – FOB Shipment
What to do when receiving a shipment:
- Count the number of pieces received and compare to the number of pieces listed on the delivery receipt and the number of pieces expected.
- Notate the number of pieces received on the delivery receipt
- In the event of a shortage, clearly notate the shortage on the delivery receipt before returning a signed copy to the driver. Ask driver for an exception code if possible
- Inspect the condition of the merchandise and review the condition of pallet/skid
- Ensure the integrity of the pallet/skid is intact including shrink wrap if applicable along with the condition of individual packages
- Ensure no individual packages are open
- Ensure that packages are not dented or crushed
- Review the condition of exposed merchandise
- Ensure that any special instructions listed on the Bill of Lading or provided to the carrier were followed
- Notate any abnormalities found in steps (3) a, b, c, & d on the delivery receipt before returning a signed copy to the driver
*** Notating “Subject to Inspection” is not a valid exception notation. Ask driver for an exception code if possible.
What do I do if I have a concealed loss or damage claim?
- Notify the carrier within 5 days of delivery and request an inspection of the freight from the carrier.
- Hold all materials and packaging in the receiving location for the carrier’s inspection.
- If the carrier does not complete the inspection in 5 working days or the carrier waives their right to inspection in writing, the consignee’s inspection report will be recognized as verification of the damages by the carrier.
- Ensure only facts, no opinions, are listed on the inspection report.
Have a claim? Please complete the claim for attached and return to Red Arrow Logistics.
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