How to File a Claim for Shipments

Posted by Benjamin Meskin on Oct 3, 2018 1:49:51 PM
Benjamin Meskin

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In this modern day and age, shipping is one of the fastest and most efficient ways to transport products from location to location. From valuable items to products ordered online, the shipping industry is large and diverse and caters to the needs of many people.

 

No method of shipment is foolproof though, and there are chances of the shipment not reaching its desired location, or becoming lost or damaged, much to the shipper’s dismay.

 

File a Claim for Shipments

 

Filing a claim for shipments is a tedious task – but one that must be completed as soon as possible to recover your possessions.

 

This article will look into the procedure required to file a claim for shipments.

 

Ascertain the Insurance Provider

 

Before Cabrella revolutionized the shipping insurance market, the shippers had to ascertain the insurance provider for their shipment to file a claim.

 

Shipping insurance was either provided by the courier company which was shipping the product itself, or an insurance company that had an agreement with the courier company.

 

Some third-party online insurers provide divided insurance for a single product. Multiple coverages confuse shippers as to where to file the claim for shipments.

 

The minimum value was insured by the courier company, with an external company insuring the rest of the value of the shipment.

 

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Required Documentation

 

Filing a damage claim requires excessive supporting documentation to be provided as proof to proceed with the claim for shipments.

 

Three examples of documentation usually requested by the client are:

 

1. Damage Claim Form

 

A damage claim form is a standardized piece of paperwork which is required to be filled out by the shipper. It usually requires:

 

  • List of damaged goods.
  • The total value of the damaged goods.
  • The packaging method of the products.
  • Proof of the product being damaged, i.e., photographs.
  • Exterior and interior damage to the packing.
  • A signed statement verifying the parcel was collected by the courier.

 

2. Damage Verification

 

A file verified and signed by the courier driver, in the case of damaged external packaging.

 

Furthermore, in case of damages to the parcel, some parcel insurance providers also require an estimation of repair costs to be included in the signed statement.

 

3. Complete Record of Invoices

 

A claim for shipments usually involves providing proof of the value of the product shipped. This includes the product’s cost, cost of shipping, bill of lading, and insurance premium, etc.

 

Shipping insurance providers require complete invoices to ascertain the value of the product and the insurance coverage which was initially offered by the insurance company/courier company.

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Exceptions

 

Every claim for shipments is filed only after verifying that there was no part of the entire incident that can be considered as an exception to the insurance policy.

 

Insurance providers draft a list of exceptions – a list of things that, if done, will render the claim void.

 

The exceptions are designed to not payout the claim, in case of even minor negligence on the shipper’s behalf.

 

Examples of these exceptions include:

 

  • Inappropriate packaging.
  • A list of items that can only be shipped with prior notice to the insurance provider. Usually include higher value items, such as electronics.
  • A list of items which are forbidden by the courier company.
  • Package sent to a country the insurance provider does insure.
  • Damages due to natural causes or acts of terrorism.
  • Violation of the courier company’s terms and conditions.

 

While the procedure to file a claim form and to provide the required documentation is tedious and time-consuming enough, the time duration for solving the claim for shipments is a shipper’s biggest test.

 

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Time Taken to Resolve the Claim

 

The entire procedure requires verification, accounting, and administrative tasks between all three parties in play – the insurance provider, the courier company, and the shipper.

 

While insurance providers and courier companies promise less, the industry standard duration to resolve a claim for shipments is four months!

 

For the shipper, this translates to prolonged stress and confusion regarding the damage coverage of the parcel.

 

Insurance providers have a very rigid procedure for filing the insurance claim.

 

They may render the claim for shipments void for having incomplete documentation, submitting a late claim request or lack of proof (such as pictures) for the missing or damaged product.

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Filing Claims with Cabrella

 

Cabrella is a third-party shipping insurance software made by an insurance firm that aims to ease the entire procedure needed to file a claim for shipments.

 

True to their mission statement, ‘shipping insurance intelligence,’ Cabrella offers distinct features which make it stand out from what other shipping insurers have to offer.

 

1. Better Rates

 

Backed by an actual insurance provider, Cabrella does not provide divided insurance but offers a single-insurer provided policy that can save shippers up to 90% off their cargo and shipping insurance rates.

 

How do they manage this? Through customized insurance plans. The support of an insurance brokerage firm gives Cabrella the power to create customized plans for its users and customize their existing plans.

 

 

2. Better Feasibility

 

Cabrella’s shipping software is built to provide seamless integration with the world’s largest shipping systems. These systems include FedEx Ship Manager, UPS WorldShip, and Endicia among others.

 

Adopting Cabrella saves users from maintaining every minute detail of their transactions. This is especially relevant due to one of the biggest drawbacks in filing a claim for shipments being the excessive documentation that comes with it.

 

3. Paperless Claims

 

Cabrella has a single dashboard, where users can conveniently track packages, review any notifications they get from the carriers, and file a claim online, relieving the stress of having to file important documents physically.

 

4. Faster Claim Processing

 

Instead of waiting for months without a definite answer on their claim query, Cabrella swiftly processes claims for damaged items– guaranteeing payment under 30 days for claims for shipments worth up to $20,000.

 

5. Customized Solutions

 

Every shipper requires a different plan. Parcels, location, fragility, and value of the product are some of the many variables involved in an insurance plan.

 

Cabrella ensures every customer has insurance based on their needs through its customized plans.

 

With no setup fee, no contracts and no minimum service fee, Cabrella not only makes up for what traditional insurers lack but provides additional features to maximize customer satisfaction. Click the button below to get a quote from our insurance professionals and discover how much you can save!

 

GET YOUR QUOTE

 

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