The Quest
Inside this issue:

Help us with our Hurricane Sandy relief efforts; Risk management tips to help your business

What you need to know about the 2012 Transportation Bill

NVOCC China rider increase effective Nov. 23

New provisions regarding legal disputes for freight forwarders in China

New Jersey seeks to ban companies classifying truck drivers as independent contractors

Customs brokers face increased liability risks under food safety act

CARB Update: Clarification of regulations applicability to customs brokers, freight forwarders and NVOCCs nationwide; new SmartWay regulations

CBP updates ACEopedia
(click here to access)


Help us with our Hurricane Sandy relief efforts; Risk management tips to help your business

Further to our Nov. 8, 2012 announcement regarding our Hurricane Sandy relief efforts, the Avalon Compassion Team (A.C.T.) is matching any employee or client donations to the American Red Cross as well as partnering with a Chicago-based client to send much needed food and supplies to the East Coast area. Simply email your American Red Cross donation receipt to AvalonCompassionTeam@avalonrisk.com, and Avalon will match your donation within our corporate guidelines.

As the East Coast continues its recovery from the damage caused by Hurricane Sandy, we are reminded of the importance of disaster planning to keep you and your business safe. At Avalon, we have a business continuity plan to ensure our people and systems are available when you need us most.

Our New York employees are working from a temporary office facility in lower Manhattan while our building gets fully repaired, and you can call or email our New York office as customary. A list of phone numbers and email addresses for our New York team can be found here. If you need to report a claim due to Hurricane Sandy, you can process through our Merlin website, email claims@avalonrisk.com, or call (847) 700-8121. Our Merlin system has been fully functional 24/7 throughout the duration of the storm, however if you experience any difficulties you can email our IT help desk at helpdesk@avalonrisk.com or call (847) 700-8150.

Avalon works with top Property and Casualty insurers like CNA, Chubb, Great American and ProSight that can offer complimentary business continuity services as part of your Business Insurance program, such as this Disaster Recovery Self-Assessment Checklist provided by CNA. Maintaining the proper Business Insurance is an integral piece of your business continuity planning. In the event of a catastrophe, it’s important to understand your coverage.

Flood Exclusions, Flood Insurance, Difference in Conditions Policy
Catastrophic perils such as floods (even when caused by a hurricane) are generally excluded from most standard property coverage forms. To protect your business from these risks, you should consider Flood Insurance and/or a special type of policy called Difference in Conditions (DIC) coverage. Avalon can assist you in securing various quotations that can provide coverage for your owned assets, as well as DIC protection for Business Income and Extra Expense if your business cannot operate after a catastrophic event. If you are interested in a Flood and/or DIC quotation, please contact your local Avalon representative or email marketing@avalonrisk.com.

Cargo Insurance
Hurricanes often cause flash floods, which can damage roads and ports. It’s important to note that if cargo is damaged in a storm, carriers are not liable for “Acts of God” and shippers will only be reimbursed if they have purchased Cargo Insurance. You should also review your Cargo Insurance policy to make sure it includes a deviation clause, which provides coverage in case cargo needs to be rerouted once it is already in transit. If you are insuring goods on an “All-Risk” basis within a warehouse, it’s important to note that most policies exclude the perils of earthquake, windstorms and floods.

Am I liable if goods are damaged from a catastrophic loss while under my bill of lading or in my care, custody or control?
Just as carriers are not liable for “Acts of God,” you will generally not be found liable if cargo is damaged as a result of an unavoidable catastrophic loss while moving under your bill of lading or while in your warehouse. You have likely received “Force Majeure” declinations from carriers already not taking any responsibility for damage to cargo as a result of Hurricane Sandy. If you need assistance to respond to liability claims from your shipper or consignee clients, please contact our claims department at claims@avalonrisk.com or (847) 700-8121.

How can businesses protect themselves?
A disaster can occur at any moment, and it’s important to work with strong, financially secure insurers. Businesses whose insurance is dictated primarily by premium costs may find that less expensive policies may often lead to less protection when disaster strikes. Avalon’s comprehensive business insurance programs understand the nature of your logistics industry and protect the full scope of your operations. We stay current on industry trends to keep you informed and protected.

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/contact.html.

Avalon Risk Management


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