|
Claims corner
The following sample claims illustrate how valuable Avalon’s Combined Transit Liability (CTL) policy is in managing your business risks. Freight forwarders spend years building value in their business, but your company could find itself in one of the following disastrous situations. Ensure you have adequate coverage to protect your investments.
Freight forwarder’s failure to follow special air waybill instructions
A pharmaceutical company contracted a freight forwarder to ship medical supplies from Japan to their corporate office in Chicago, Ill. Prior to shipment, the pharmaceutical company informed the freight forwarder that the medical supplies were to be kept cool during transit.
The air waybill clearly stated the special instructions regarding temperature. When the shipment arrived at the assigned destination in Chicago, the pharmaceutical staff noticed the medical supplies were warm. Because of the freight forwarder’s negligence and failure to follow special instructions, the medical supplies could not be used.
The pharmaceutical company sued the freight forwarder and the case was taken to court. Luckily, the insured purchased Avalon’s Combined Transit Liability (CTL) program with the First Dollar Defense coverage option. The forwarder’s deductible did not apply to attorney fees to defend the claim, only to his settlement amount. The insurance company paid the claim amount minus the deductible.
Claim Amount: $39,000
Deductible: $10,000
Settlement: $29,000
Carelessness of transporting goods
An electronics company hired a freight forwarder to transport computer equipment from Kansas to Ohio. When the containers arrived at the consignee’s warehouse, it was discovered three boxes were damaged. The boxes were crushed, punctured, torn and dirty. The boxes fell and were damaged because they were not properly placed on the skid prior to transporting.
The company sued the forwarder because the goods were not properly secured for transport. Since the forwarder purchased Legal Liability coverage, the insurance company approved his claim and assigned an attorney, who settled the case out of court.
Claim Amount: $3,320
Insured’s Deductible: $1,500
Settlement: $1,820
Avalon offers a Combined Transit Liability (which provides seamless coverage for all your professional and legal liability needs. The CTL policy combines Errors and Omissions (E&O) Insurance and Cargo Legal Liability, tailored to meet a company’s business needs. Optional coverage such as First Dollar Defense and Contractual Liability can also be added to the CTL policy. Please also view our CTL brochure and application for more information.
For further information, contact Bridgette Collins, Product Manager at Avalon’s corporate headquarters. Bridgette Collins can be reached at her direct line (847) 700-8124 or at
bacollins@avalonrisk.com. Please do not hesitate to contact one of our nine regional offices throughout the United States.
To view a directory of Avalon’s office locations, please
visit our Web site at
www.avalonrisk.com.
Top
View
Printable Version
|
