Cargo owners must check their insurance policies for potential gaps in cover as 10% of related insur...
Cargo owners must check their insurance policies for potential gaps in cover as 10% of related insurance claims face non-payment due to insufficient cover, Aon has warned.
New research by the broker has revealed companies' balance sheets could take a hit for the loss or damage of goods at a time when credit is scarce because one in 10 cargo claims currently fall outside standard cargo policies based on the Institute Cargo Clauses.
The top five most common gaps identified in standard policies were: claims being declined due to damage caused by inadequate packaging; failure to evidence loss due to damage not being apparent on initial inspection and not reported within a set time limit; payment of the purchase invoice value, rather than the final sales contract value in the event of a loss; no brand protection in the event of damaged goods having a potential reduced or salvage value; and cover for damaged items only, rather than an entire consignment in the event of damage/soiling by stowaways or other 'unauthorised occupants', in a container or trailer.
In addition to securing broad insurance cover, Aon has urged cargo owners to implement checks on their own and their suppliers' packaging; hold carriers liable in writing, without delay, for loss/damage in transit; and note damage on delivery notes on arrival to evidence damage in transit.
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