September 17, 2015
Claims Corner – Cargo Theft and Fictitious Pickup
A property broker arranged for the transport of refrigerated/frozen lamb and beef from California to New Jersey, valued at $300,000. The load was brokered using an internet loadboard, and the carrier assigned was one that the insured had never used before. The consignee never received the load, and it was reported stolen.
Upon investigation, it was found that the load was picked up from the facility by a driver possessing the appropriate documents and posing under a legitimate trucking company. The facility is equipped with video surveillance, but no pertinent footage was captured. Contact particulars provided by the perpetrators were found to be fraudulent and operating authorities inactive per FMCSA.
Law enforcement was able to recover almost 90% of the stolen product from two separate locations thanks to an outside tip. Despite being in good visual condition, the consignee no longer wished to accept the goods. In order to repurpose the recovered products, the shipper paid to have the product tested and analyzed. The perpetrator was not caught.
Unfortunately, there was no coverage for this loss since the property broker did not have a CTL Policy with Extended Dishonest Acts of Third Party coverage.
Loss Amount: $290,736
Claim Payment: $0
To learn more about this topic, we encourage you to attend the NEI's September 30th webinar: Identity Theft & Carrier Qualifications.