1. Amount of Cargo Coverage:  The federal requirements are $5,000 in cargo coverage.  While most carriers have $100,000 in cargo insurance, Kaiser carries $1,000,000 in cargo insurance.  If you are transporting freight you need to make sure that the carrier has enough cargo insurance to cover the entire load on that particular trailer.
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 and this will create further problems in settling this claim.
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 carries a Broad Form Commercial Inland Marine Cargo Coverage.  A list of Kaiser’s cargo insurance exclusions is displayed in appendix 1.
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 does carry some of the best Cargo Insurance in the industry.  We want to protect our customer’s freight in the event that there is damage to the freight that is the responsibility of Kaiser.  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.
2. We carry coverage for water damage, but “tarping” does not waterproof the freight.  Tarping does “weather protect” the freight and Kaiser does carry high-grade tarps with commercial padding and extra “D rings” that allow our drivers to secure the tarp tighter.  This will keep it from “flapping” which can damage the paint under the tarp.
3. Kaiser cannot be held responsible for “Concealed Damages”.  We (our insurance company) 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).  We (our insurance company) have no way of knowing if the alleged damage was there before we picked up the freight.
4. Kaiser 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.

Cargo Claims Procedure and Documentation

1. Make an immediate inspection of all freight at time of delivery in the presence of the driver.
2. Take 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 independent adjustor 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 2, 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.

If you have any questions or concerns, please contact Kaiser’s Claim Department at 608-741-7739 or email claims@kaisertransport.com.