Kaiser Brokerage appreciates the opportunity to provide our services to meet your transportation needs.  It is our mission to provide you the very best service in meeting the shipping needs of your company.  One of our main goals to meet this mission is to provide “On Time” “Damage Free” delivery of your freight. There are some facts that our valued customers and shippers need to realize about our Cargo Insurance and Freight Claims.  Kaiser Brokerage wants to up front with our customers and shippers by informing them before there is an issue about our policies and procedures.

Cargo Insurance 

           There are many forms of cargo insurance out there in the transportation world.  They range from offering very limited coverage to extremely good coverage.   The carries that Kaiser Brokerage uses are throroughly screened to make sure they have the required insurance to cover your freight.

1. Amount of Cargo Coverage:  The federal requirements are $5,000 in cargo coverage.  All of the carriers that we use have at a minimum of $100,000 in cargo insurance.  Our experienced dispatchers are knowledgable on cargo insurance and watch to make sure that there is sufficient coverage for our customer’s freight.  Kaiser Brokerage carries additional cargo contingent insurance that will provide further protection in case the carrier’s insurance is insignificant to cover our customer’s freight.
1. Example:  You put a $65,000 piece of freight on a trailer that has two other pieces of freight worth $70,000 belonging to somebody else.  If the truck is involved in an accident and all the cargo is lost, cargo insurance of $100,000 won’t cover the entire load.  Therefore, the trucking company is underinsured , but with the contingent cargo insurance that Kaiser Brokerage carries, your freight is fully covered.
2. Cargo Insurance Exclusions:  All cargo insurance policies have “exclusions” – those items that the insurance company will not cover.  If you transport freight, you need to know what exclusions the trucking company has and ask for a list of exclusions.  Exclusions can swallow the policy.  Some only cover cargo damage as a result of a motor vehicle accident, and overturning vehicles.  Others exclude all water damage or have commodity exclusions (only cover cardboard, plastic, and wood products).  Kaiser Brokerage actually checks with our carrier’s insurance company to make sure that there are no exclusions that can have an adverse affect on our customers.  We use only those carriers that we can verify their insurance coverage.
3. Bill-of-Lading (BOL):  This shipping document is the most important document.  The carrier signs for custody of the freight when they pick it up.  The consignee should inspect the freight at the time of delivery – in the presence of the driver and make any notations of any damage or loss on the BOL before signing.  Note: if there are NO notations of damage or loss on the BOL, the Federal Regulations under Carmack state there is a rebuttal presumption that the damage did NOT occur while in possession of the motor carrier.  Our insurance company, as will most of them, will refuse to pay a cargo damage claim when there is a “Clear” BOL.  A “Clear” BOL has no notations of damage or loss written on it.

 Cargo Damage Claims

             Kaiser Brokerage does everything we can to protect our customers and shippers.  We make sure our carriers have sufficient cargo insurance.  In the event that there is damage to the freight that is the responsibility of Kaiser Brokerage’s carriers, we want to make our customers aware of the following facts in regards to cargo claims:

1. Shippers and Consignees must inspect and note any damage or loss on the BOL at the time of delivery.  Preferably when the driver is still present, and take photos of the damage.
2. We make sure our carriers carry coverage for water damage, but “tarping” does not waterproof the freight.  Tarping does “weather protect” the freight and Kaiser Brokerage does check our carriers to make sure they have the required tarps.
3. Our carriers cannot be held responsible for “Concealed Damages”.  The insurance companies will generally deny a claim if we are not given the opportunity to inspect the freight at time of pick up (freight is in a container, crate, or wrapped in a non-transparent covering).  The insurance companies have no way of knowing if the alleged damage was there before we picked up the freight.
4. Our carriers cannot be held responsible for the condition of “Used” machinery or equipment.  There is no way of knowing in what condition the workings (internal or external) of that machine or equipment was in at time of pick up.
5. Federal regulations under the Carmack Amendment, 49 U.S.C. ss 14706, state that the motor carrier is liable for actual loss or damages to the property transported with the following exceptions:
1. Special damages, punitive damages, and attorney fees are not generally available.
2. Moderate delays are not typically actionable claims.  Only requirement for the motor carrier is “Reasonable Dispatch”.
3. Intervention of Public Authority was the cause of the damage.
4. Act of War/Public Enemy was the cause of the damage.
5. Act of God.
6. Act of the Shipper – freight must be packaged or prepared for shipment so it can withstand the normal perils of being loaded, unloaded, and transported.  The shipper or consignee would be liable for any damage.
7. Inherent Vice of the Goods – i.e. shipping unprotected steel through rain; shipper should have known it would become rusted.

Filing a Cargo Claim

1. The claim must be filed with the motor carrier within 9 months of the date of delivery.
2. The motor carrier must acknowledge the claim within 30 days of receipt.
3. The motor carrier must provide written status reports every 60 days, with explanation of reasons for delay in resolving the claim.
4. Any lawsuit must be filed within 2 years from the denial by the motor carrier.

 Kaiser Brokerage will assist our customers/shippers in the filing, investigations, and working with our carrier’s insurance company to handle the Cargo Damage or Loss Claim.  All Cargo Claims will be handled at the highest level of priority.  In the event of a potential cargo claim, please contact Kaiser’s Claim Department by phone 608-741-7739 or email claims@kaisertransport.com. 

Cargo Claims Procedure and Documentation 

1. Make an immediate inspection of all freight at time of delivery in the presence of the driver.
2. Make proper exceptions on all delivery receipts or Bill-of-Ladings in respect of all loss or damage existing at the time of delivery and during transit.  It is most important that exact exceptions be taken in writing on the delivery receipt or Bill-of-Lading as to the condition of the freight.  Be sure to keep a copy of the signed delivery receipt or Bill-of-Lading for your claim department.
3. Immediately contact our Claims Department with the information of the cargo damage or loss.  That way we can start the process, and if needed, get the insurance company out to your facility to inspect and gather all necessary facts and photos.
4. Take photos of the freight and the damage.  Digital photos work best, but anything is better than no pictures.
5. File the required Cargo Damage Claim Form with our Claims Department.  Kaiser’s claim form is shown in appendix 1, and is available on our website or from our office.
6. To enable cargo damage claims to be dealt with promptly, the consignee or their agent are advised to submit all available supporting documents to our Claims Department or the independent adjustor if one is assigned to the claim.
1. Copies of all original Bill-of-Ladings covering the entire shipment, including paid freight invoices with proper exceptions in respect to the damage or loss noted thereon.
2. Copy of the shipper’s commercial invoice covering the entire shipment.
3. Statement of damage or loss claim if claimant is not the consignee.
4. Copies of the estimated, itemized repair quote or itemized repair invoice relevant to the cargo loss or damage.
5. Photographs of freight and damage.
6. Copy of inspection report.
7. Any other documents, reports, or information relevant to the loss or damage.