Freight Protection Insurance: What You Need to Know

Protection

1. Coverage commences from the time goods leave the shipper and/or supplier’s place of business and continues in force during the ordinary and customary course of transit to the final destination.

2. Cargo is protected against "All Risk" of physical loss or damage from any external cause.

3. Insurance remains in force until the time of delivery.

4. Delivery is understood to be when the consignee, receiver, or anyone acting on behalf of the consignee takes possession of the goods.

5. Concealed damages must be reported within 1 calendar day of delivery.

Warranties of Coverage

1. Goods must be properly packaged to withstand the ordinary rigours of inland transportation and transloading.

2. A Signed Delivery receipt is required at the time of delivery.

3. No Waivers of Subrogation with any Inland Carriers or Third-Party Delivery Companies.

4. Contracted Carriers and Delivery Companies must be licensed and insured.

General Exclusions (In no case shall this insurance cover loss or damage or expense caused by):

1. Loss, damage, or expense attributable to willful misconduct of the Assured.

2. Leakage, loss in weight or volume of the subject matter insured.

3. Wear and Tear, or gradual deterioration.

4. Inherent vice, defect, or nature of the goods insured.

5. Insects and vermin.

6. Mechanical breakdown.

7. Delay, loss of market, loss of use, interruption of business, or any consequential loss.

8. Neglect of the Assured to use all reasonable means to save and preserve the property at the time of or after any loss or damage.

9. Loss, damage or expense caused by insufficiency or unsuitability of packing or preparation of the goods insured to withstand the ordinary incidents of the insured transit.

10. Rust, Oxidation, Discoloration, and Corrosion absolutely.

11. Atmospheric conditions such as rain and/or water damage when cargo is transported or stored in the open.

12. Electrical, electronic, and mechanical derangement, unless caused by external impact during the time coverage is in effect.

13. Manufacturing defects.

14. Loss or damage resulting from rejections by the government authority.

15. Any pre-existing conditions, howsoever caused.

16. Damage caused by an inoperable lift gate, any improper or unsecured loading, or unloading operation when transported on owned and operated trucks.

17. Loss, damage, or expense caused by insolvency or financial default of the owners, managers, or operators of the land conveyance where the Assured is aware, or in the ordinary course of business should be aware, that such insolvency or financial default could prevent the normal prosecution of the transit. This exclusion shall not apply where the contract of insurance has been assigned to the party claiming hereunder who has bought or agreed to buy the goods insured in good faith under a binding contract.