Insuring Property In Transit

Insuring Property In Transit

Presented to

Health & Personal Care Logistics Conference

By

Mark Yunker, Vice President

RJ Ahmann Company


• Domestic Transit– Includes Canada– Excludes Mexico (NAFTA)

• International Transit– Almost All Countries

– Continuum : Cargo to Property


• Carrier Liability– Type of Carrier used to matter– FMCSA Eliminated Cargo Insurance

Requirement for all motor carriers – except HHG

– BMC-32 Also Eliminated– Problems that Result– Tariffs Proliferating– No Qualification for Self Insured


• Motor Truck Cargo Insurance– Ranges from terrific to awful

• Most are very good

– Carrier liability is very broad– Identifying Exclusions is not enough

• Endorsements• Definition of Covered Property (App)• Warranties (Locked vehicle, attended, etc.)• Coinsurance – Rare And Inexcusable


• Motor Truck Cargo + Contingent Cargo Insurance– Not all CC policies are equal– Beware of Following Form CC Policies– Beware of Inappropriate CC policies– Free Advocacy– Should fill coverage gaps– What is it contingent upon?


• Shippers Interest– You buy and control terms– Must be “in due course of transit”– No underlying insurance requirements– Not Liability based– No concern about where the claim payment

goes– Verify terms with suppliers– More Expensive


• Property Insurance– Merely extends your insurance to mobile

property– Can be stored– No liability basis– Very broad coverage– You control terms including deductible– The broadest and least expensive insurance

available


• Ocean or International Policies– Includes Ocean, Air, and Land at your

discretion– Very broad coverage– You should control insurance – but can be

purchased through NVOCC, OTI, Ocean FF’s, etc.

– Relatively inexpensive


• Ocean Cargo Con’t.– Beware of Inco Terms– Beware of through bills of lading

• OTI’s can inadvertently limit recovery

Insuring Property In Transit

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