The Quest
January 2011 - Issue 70
Inside this issue:
ISF enforcement:
Where we are now

Disaster in Japan: Avalon assists in aid, BCP reminder

CBP updates: Bond insufficiency, new address for mailing checks

FMCSA elimination of Cargo Insurance, BMC-32 takes effect March 21
CSA motor carrier
ratings now in force

New ACORD form changes how logistics providers
verify insurance

Revised Incoterm rules
take effect

UAE joins ATA
Carnet system

Claims corner:
Worldwide Coverage



Claims Corner: Worldwide Coverage
The below are actual claims covered under Avalonís Combined Transit Liability Program. The CTL program automatically includes a Worldwide Coverage option to provide legal defense if a lawsuit is filed against you outside the United States and Canada, and also appoints attorneys with the expertise to defend these matters internationally.

Missing Cargo
A shipment of electronics, shipped under the Indirect Air Carrierís (IACís) house airway bill, was in route to Manaus, Brazil via Miami International Airport. Upon arrival in Miami, the cargo was discovered missing. Nine months later, the Brazilian insurance company who paid on the Cargo Insurance policy initiated a subrogation claim against the IAC for the non-delivery. A lawsuit was filed against the IAC for the recovery of the full invoice value of $32,800. The lawsuit was filed in Manaus, Brazil, and provided the IAC with only 15 days to respond to the claim. Avalon quickly appointed a Brazilian attorney who was able to negotiate the case in favor of the IAC. Because the IAC obtained Avalonís CTL program with an automatic Worldwide Defense coverage option, the claim was covered in full.

          Claim Amount: $32,800
          Settlement: $2,800
          Legal Fees: $7,100
          Insuredís Deductible: $5,000

Legal fees
An NVOCC coordinated a shipment of frozen lobster from Maine to Switzerland with a bill of lading specifying a required temperature of
-20įF for the container. The carrier read the shipping instructions incorrectly and set the temperature on the container to +20įF, which caused the frozen seafood to spoil. The consignee named the NVOCC in a lawsuit to recover lost profits. The lawsuit was initiated in Switzerland, and Avalon appointed a Swiss attorney. The Switzerland court determined that the error was the result of the carrier. The NVOCCís CTL policy covered all legal fees in full.

          Claim Amount: $92,858.76
          Settlement: $0
          Legal Fees $9,760.38


For more information, please contact your local Avalon office or Andriana Davis at (847) 700-8087 or at adavis@avalonrisk.com. A list of our offices may be found at www.avalonrisk.com.

Avalon Risk Management
150 Northwest Point Boulevard | 4th Floor | Elk Grove Village, IL 60007
Phone: (847) 700-8100 | Fax: (847) 700-8116



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