Addressing Maritime and Business Law Issues Since 1989

Insurance may be available after shipping losses

| Jun 15, 2021 | Transportation Law |

Many transportation disputes develop because all or part of a shipment of products or supplies gets lost or damaged in the course of transportation over land or air.

These sorts of transportation issues can be extremely costly. For starters, a business loses the goods it paid for and must get them repaired or replaced.

Moreover, the loss of a shipment can cause a supply chain disruption that means a business’s customers also do not have their expectations met. In other cases, lost or damaged equipment means that a business cannot complete important projects and goals.

Shipping companies will often carry insurance to cover losses

Many times, a business will want to pursue the shipping company that was ultimately responsible for delivering the goods.

In many cases, the shipping company will carry what is called cargo liability insurance. This type of insurance serves to pay businesses if the shipping company fails in its obligation to deliver the business’s goods without loss or damage.

Businesses should strongly consider making sure that any shipper it uses has adequate cargo liability coverage in place.

Filing a cargo liability claim can be complicated

Even if coverage is available, seeking cargo liability benefits from a shipper’s insurance carrier can be a frustrating experience.

The insurance company may elect to deny the claim or may not be willing to pay for all of the losses.

Unfortunately, sometimes insurance companies take these actions improperly, without correctly considering the policy’s terms, the facts and the laws of California or other jurisdictions.

In other cases, for whatever reason, the insurance carrier may not attend to the claim in a timely fashion.

Seeing a transportation-related claim with a shipper’s insurance company to its right conclusion may require the assistance of an attorney experienced with transportation law.