{"id":875,"date":"2018-04-25T15:19:19","date_gmt":"2018-04-25T15:19:19","guid":{"rendered":"http:\/\/www.bocintl.com\/en\/?p=729"},"modified":"2021-12-31T17:35:54","modified_gmt":"2021-12-31T17:35:54","slug":"the-boc-blast-235-a-challenge-to-shippers-who-would-never-dream-of-controlling-the-insurance","status":"publish","type":"post","link":"https:\/\/www.bocintl.com\/web\/the-boc-blast-235-a-challenge-to-shippers-who-would-never-dream-of-controlling-the-insurance\/","title":{"rendered":"The BOC Blast 235 – \u00a0A Challenge to Shippers Who Would Never Dream of Controlling the Insurance"},"content":{"rendered":"

\"\" \u00a0\u00a0A Challenge to Shippers Who Would Never Dream of Controlling the Insurance<\/b>
\nShippers who rely on suppliers to furnish cargo insurance or who rely on their carriers to take responsibility for losses may be in for a big surprise. Protecting your investments by insuring your goods provides peace of mind.
\nBuying CIF: Who\u2019s really responsible if your product is lost or damaged in transit? <\/b>According to internationally accepted trade terms, referred to as Incoterms, suppliers selling \u201cCIF\u201d (Cost, Insurance, Freight) are responsible for arranging cargo insurance. But just because your supplier has the obligation to arrange insurance under CIF terms, it doesn\u2019t mean that they are ultimately responsible if your product is lost or damaged during transit. The ultimate burden of loss falls upon you, the buyer. This is why many experts recommend importers change their buying terms to EXW, FOB, FCA, CFR or similar terms in order to control the selection, and thereby the quality, of insurance coverage.
\nHow much is that insurance really costing you?<\/b> Foreign suppliers and their forwarding agents often tack on placement fees to the insurance costs. Those added fees often inflate the cost of insurance well beyond market pricing for the same coverage purchased in the United States. Find out how much you\u2019re really paying and then compare quotes received from BOC International.
\nIs the coverage your supplier purchased for you adequate?<\/b> Importers relying on their suppliers to arrange insurance run the risk of having inadequate insurance coverage. Cargo insurance policies can vary widely in levels of coverage, deductibles and special restrictions. Ask your supplier for a complete copy of the insurance policy or for a certificate of insurance detailing all the policy terms and conditions
\nWhat\u2019s the financial health of your supplier\u2019s insurance company? <\/b>Recent financial and catastrophic events have exposed the vulnerability of insurance companies to sudden economic devastation. Importers are encouraged to make certain their suppliers use insurers with a favorable financial rating supplied by a respected financial rating service. A.M. Best, Standard & Poor\u2019s and Moody\u2019s are among some of the world\u2019s most respected. BOC\u2019s insurance company, underwriters at Lloyd\u2019s of London, has an A.M. Best financial rating of A (Excellent).
\nHow will your claim be handled?<\/b> If insurance is arranged overseas, will you be forced to\u00a0 deal with an inexperienced, sub-contracted independent adjuster unfamiliar with the assessment of transportation related losses? Ask your supplier for a list of insurance claims adjusters contracted by the insurance company. Adjuster and surveyor networks approved by Lloyd\u2019s of London and AIMA are among the most credible. BOC has a vested interest in your insurance needs and will directly handle cargo claim documentation requirements to ensure prompt processing and timely settlement.
\nEvery Shipper Needs Cargo Insurance<\/b>
\nGlobal trading involves risk; however, broad insurance coverage minimizes your financial risk. Don\u2019t leave your livelihood up to chance! Statistics show that one ship sinks each day and you will experience a General Average loss every eight years. If you are depending on the carrier to cover losses, their responsibility is limited by law as follows:
\nOcean Carriers\u00a0 $500 per shipping unit
\nA shipping unit may be defined as one ocean container.
\nAir Carriers\u00a0 $9.07 per pound
\nTruckers\u00a0 $.50 per pound
\nThe insurance we offer is competitively priced and insures approved merchandise against physical loss or damage from external causes. By purchasing cargo insurance, you can avoid inconvenience and frustration. Contact your BOC Representative at 617-345-0050 for your free quote.<\/p>\n

What Every Shipper Needs to Know About Declared Value vs. Cargo Insurance<\/b>
\nIn the transportation industry, the words declaring and insuring are often interchanged resulting in great misunderstanding and confusion among shippers. Here\u2019s an explanation of what to expect when declaring value with your forwarder\/carrier versus purchasing cargo insurance.
\nDeclared Value Coverage<\/b>
\nDeclared value coverage is not insurance for shippers. One of the most significant distinctions of being paid on a claim under declared value is that the shipper must prove that the carrier\u2019s negligence directly resulted in the loss or damage to cargo.
\nDeclaring value simply raises the financial legal liability of the carrier beyond the limitations stated on the carrier\u2019s or forwarder\u2019s freight bill, tariff or other contract of carriage. For example, many domestic forwarders and carriers limit their liability to 50 cents per pound. Declaring value takes that amount up to the amount declared.
\nThe majority of these transportation providers have transferred that risk to an insurance company who issues an insurance policy that gives shippers the option of upping the carrier\u2019s liability by declaring value and paying premium.
\nAlthough subject to the transportation provider\u2019s policy conditions, shippers rarely see the insurance policy containing important facts such as deductibles, exclusions, warranties and policy limits.
\nIn the transportation industry, the words declaring and insuring are often interchanged resulting in great misunderstanding and confusion among shippers. Here\u2019s an explanation of what to expect when declaring value with your forwarder\/carrier versus purchasing cargo insurance.
\nDeclared Value Coverage<\/b>
\nDeclared value coverage is not insurance for shippers. One of the most significant distinctions of being paid on a claim under declared value is that the shipper must prove that the carrier\u2019s negligence directly resulted in the loss or damage to cargo.
\nDeclaring value simply raises the financial legal liability of the carrier beyond the limitations stated on the carrier\u2019s or forwarder\u2019s freight bill, tariff or other contract of carriage. For example, many domestic forwarders and carriers limit their liability to 50 cents per pound. Declaring value takes that amount up to the amount declared.
\nThe majority of these transportation providers have transferred that risk to an insurance company who issues an insurance policy that gives shippers the option of upping the carrier\u2019s liability by declaring value and paying premium.
\nAlthough subject to the transportation provider\u2019s policy conditions, shippers rarely see the insurance policy containing important facts such as deductibles, exclusions, warranties and policy limits.<\/p>\n

    \n
  1. <\/b>What are some of the things not covered when we declare value?<\/li>\n
  2. <\/b>Three significant areas not addressed by declaring value are: (1) that the shipment is not covered \u201cdoor-to-door.\u201d Declared value is valid as long as cargo is in the care, custody, and control of the transportation provider; (2) other losses commonly not provided for include \u201cActs of God\u201d and any other incidences outside the control of the carrier; and (3) reimbursement of freight charges, packing expenses, forwarding fees and similar costs are also not covered when buying declared value vs. cargo insurance.<\/li>\n
  3. <\/b>We\u2019ve been shipping for years without a serious loss. Isn\u2019t it throwing away money to start buying coverage now?<\/li>\n
  4. <\/b>No. Experienced risk managers will tell you that insurance shouldn\u2019t be purchased only when a company can afford to sustain a significant loss. Think of the maximum value of a shipment. Imagine that entire load being destroyed in an airplane crash or truck overturn. Picture your company being without that money forever. If the shareholders can sustain that kind of loss along with all the other little nuisance losses that occur throughout the year, and can do it without a sleepless night, then your company may be a good candidate for self-insuring.<\/li>\n<\/ol>\n\n\n\n\n\n\n\n\n
    \u00a0<\/b>Declared Value vs. Cargo Insurance At-a-Glance<\/b><\/td>\nCargo Insurance<\/b><\/td>\nDeclared Value<\/b><\/td>\n<\/tr>\n
    Provides door-to-door protection<\/b><\/td>\nYes<\/td>\nNo<\/b><\/td>\n<\/tr>\n
    Pays whether or not transportation provider\u2019s negligence is proven to have caused the loss<\/b><\/td>\nYes<\/td>\nNo<\/b><\/td>\n<\/tr>\n
    Pays for losses occurring outside control of the carrier<\/b><\/td>\nYes<\/td>\nNo<\/b><\/td>\n<\/tr>\n
    Pays shipper for the full invoice value of cargo lost or damaged plus freight and other associated costs<\/b><\/td>\nYes<\/td>\nNo<\/b><\/td>\n<\/tr>\n
    Can pay for expediting replacement goods<\/b><\/td>\nYes<\/b><\/td>\nNo<\/b><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    \"\"<\/p>\n","protected":false},"excerpt":{"rendered":"

    \u00a0\u00a0A Challenge to Shippers Who Would Never Dream of Controlling the Insurance Shippers who rely on suppliers to furnish cargo insurance or who rely on their carriers to take responsibility for losses may be in for a big surprise. Protecting your investments by insuring your goods provides peace of mind. Buying CIF: Who\u2019s really responsible<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[507],"tags":[],"class_list":["post-875","post","type-post","status-publish","format-standard","hentry","category-the-boc-blast"],"_links":{"self":[{"href":"https:\/\/www.bocintl.com\/web\/wp-json\/wp\/v2\/posts\/875","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bocintl.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bocintl.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bocintl.com\/web\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bocintl.com\/web\/wp-json\/wp\/v2\/comments?post=875"}],"version-history":[{"count":1,"href":"https:\/\/www.bocintl.com\/web\/wp-json\/wp\/v2\/posts\/875\/revisions"}],"predecessor-version":[{"id":2098,"href":"https:\/\/www.bocintl.com\/web\/wp-json\/wp\/v2\/posts\/875\/revisions\/2098"}],"wp:attachment":[{"href":"https:\/\/www.bocintl.com\/web\/wp-json\/wp\/v2\/media?parent=875"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bocintl.com\/web\/wp-json\/wp\/v2\/categories?post=875"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bocintl.com\/web\/wp-json\/wp\/v2\/tags?post=875"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}