Transcript Insuring Property In Transit

Insuring Property In Transit
Presented to
Health & Personal Care Logistics
Conference
By
Mark Yunker, Vice President
RJ Ahmann Company
Insuring Property In Transit
• Domestic Transit
– Includes Canada
– Excludes Mexico (NAFTA)
• International Transit
– Almost All Countries
– Continuum : Cargo to Property
Insuring Property In Transit
• 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
Insuring Property In Transit
• Motor Truck Cargo Insurance
– Ranges from terrific to awful
• Most are very good
– Carrier liability is very broad
– Identifying Exclusions is not enough
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Endorsements
Definition of Covered Property (App)
Warranties (Locked vehicle, attended, etc.)
Coinsurance – Rare And Inexcusable
Insuring Property In Transit
• 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?
Insuring Property In Transit
• 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
Insuring Property In Transit
• 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
Insuring Property In Transit
• 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
Insuring Property In Transit
• Ocean Cargo Con’t.
– Beware of Inco Terms
– Beware of through bills of lading
• OTI’s can inadvertently limit recovery