RETAIL SHIPPING ASSOCIATES
RS PACKAGE INSURANCE PROGRAM
RS Insurance Package Program / CARGO INSURANCE PROGRAM GUIDE LINES
Contents
1. RS Package Insurance Program 1
• RS Package Insurance Program By Marsh 1
• Why the RS Package Insurance Is Your best Choice For Covering Your Customers' Shipments 1
• What the RS Package Insurance program provides: 1
2. Program Highlights 2
• Full-Coverage Really Means "Full-Coverage" 2
• Protecting Your Financial Interest 2
• Competitive Pricing 2
• Claims Handling 2
3. Coverage Guide 3
• Excluded Commodities 3
• Restricted Commodities 3
• Special Care Commodities 4
• "Left at door" Commodities 4
• Coverage Exclusions 4
• Valuating Your Goods 5
• Upon Delivery of the Goods 5
• Upon Receiving the Goods 5
• Claims Service 5
4. Premium and Rates 6
• RS Basic Member 6
• RS Premium Member 6
5. Frequently Asked Questions (FAQ) 7
6. Program Procedure Guidelines 10
• Who is our Program Contact 11
• How to make a payment 12
• Getting set up online to pay via credit card 15
• How to adjust a shipment 16
• How to cancel a shipment 17
• Arranging approval on Excluded/Restricted commodities (prior to shipment) 18
• Filing a claim 20
7. Appendices 23
• Marketing Materials 23
140103rg.doc 2014-01-13 MARSH • 21CARGO INSURANCE PROGRAM GUIDE LINES / RS Insurance Package Program
Section One
RS Package Insurance Program
RS Package Insurance Program by Marsh
Properly covering your customers’ shipments for loss or damage is an integral part of the service you provide. It protects both you and your customer while representing a significant profit opportunity for your store. The best means of protecting your customers’ (and your) financial interest is to purchase full coverage package/cargo insurance.
RS Package Insurance is underwritten by Marsh, the world’s leading cargo insurance broker and risk adviser. Marsh has over 24,000 employees and provides advice and transactional capabilities to clients in over 100 countries. Through the RS Package Insurance Program, Marsh is now offering full coverage package/cargo insurance to the Retail Shipping industry at highly competitive rates and with a value proposition that revolutionizes the way shipments are covered.
Why the RS Package Insurance Is Your best Choice for Covering Your Customers' Shipments
Purchasing “limits of liability” or “shipment value” protection from the carriers is not the same as full package and cargo insurance. Even if additional insurance or a declared value is requested from the carrier, certain Terms of Carriage and/or bill of lading/airway bill limitations may still apply, such as:
§ Acts of God (flood, earthquake, hurricane, tornado, etc.)
§ Act or fault of the shipper or public authorities; and rust, oxidation, or discoloration
§ Terrorism, strikes, riots, and in some jurisdictions theft by hijacking
What the RS Package Insurance program provides:
§ The policy protects your cargo while in transit against “all risks” of physical loss or damage.
§ Shipments are insured for the full value of the shipment including all transportation costs AND your markup on the transaction, AND any packaging materials AND any packaging charges, so you are made whole.
§ Coverage includes exposures not generally covered by legal liability or shipment value protection, including perils such as Acts of God, terrorism, strikes, riots, and civil commotions.
§ Coverage includes transit by other carriers/subcontractors involved in the shipment, and provides protection from door to door, including return shipments.
§ You do not need to prove fault on the part of the carrier. This can save months of time as the claim is paid on submission of documentation, and not based on proof of fault.
§ Losses are paid quickly and efficiently.
§ Claims are resolved regardless of whether the carrier is going to pay or not.
§ RS Package Insurance Coverage premiums cost significantly less than carrier coverage, so providing full insurance to your customers not only provides superior coverage, but also represents protection for your store as well.
§ This program allows you to sell real insurance to your drop-off shipment customers—a genuine need.
This new program is revolutionizing package and cargo insurance for the Retail Shipping Industry.
Program Highlights
Full-Coverage Really Means "Full-Coverage"
Every aspect of this program is superior to “limits of liability” and “shipment value” protection offered by the carriers. Even other 3rd party insurance products don’t compete.
The RS Package Insurance Program is designed to protect and meet your needs. Some of its coverage benefits include:
§ The policy protects your cargo against “all risks” of physical loss or damage while in transit.
§ Coverage includes exposures not generally covered by legal liability protection, including perils such as Acts of God, terrorism, strikes, riots, and civil commotions.
§ Shipments are insured for the full value of the shipment including all transportation costs and your mark-up on the transaction, so in the event of a loss you will be made whole (coverage purchased through a carrier does not cover the retail shipping cost).
§ Coverage includes transit by other carriers/subcontractors involved in the shipment, and provides protection from door-to-door, including return shipments.
§ You do not need to prove fault on the part of the carrier (this can save months of time as the claim is paid on submission of documentation and not based on proof of fault).
§ The RS Package Insurance Program allows you to sell insurance to your drop-off customers. Now, all those drop-off customers can be viewed as a real revenue stream for your store--this is a game-changer.
§ This coverage applies to DHL, FedEx, UPS, and USPS shipments, both domestically and internationally.
Protecting Your Financial Interest
You have a vested interest in the shipment arriving safely. Loss or damage in transit has the potential to impose a financial loss and impact your client relationships. The best means of protecting all your interests is to purchase full direct damage cargo insurance through the RS Package Insurance program.
Purchasing “limits of liability” or “shipment value” protection from carriers is not the same as full coverage package insurance. Even if additional insurance or a declared value is requested from the carrier, certain Terms of Carriage and/or Bill of Lading/Airway Bill limitations may still apply, such as:
§ Acts of God (flood, earthquake, hurricane, tornado, etc.)
§ Act or fault of the shipper or public authorities; and rust, oxidation, or discoloration
§ Terrorism, strikes, riots, and in some jurisdictions theft by hijacking
Competitive Pricing
The pricing on insurance offers a significant savings over the more limited legal liability coverage provided by the carriers. The insurance pricing is based on the actual value of the goods and not on “block” pricing. Therefore the cost is exactly what it should be and not based on a range. Rates and terms are subject to change. Certain countries may be restricted from insurance coverage.
Claims Handling
Claims under this program are NOT dependent upon carrier approval. Other “additional coverage providers” mandates that the carrier approve any claims made FIRST before they will begin their review of the claim. Marsh, the insurance broker on the program, will work diligently with the Insurance Company to ensure that any and all claims are serviced, processed and handled quickly and efficiently.
Coverage Guide
There are certain commodities that cannot be insured on the program or must be sent to the underwriter for review prior to coverage being granted. Failure to follow any listed conditions below may result in a claim being denied.
Excluded Commodities
These commodities will not be insured UNDER ANY CIRCUMSTANCES.
§ Live Plants or Animals (including reptiles, snakes, birds, insects, etc.)
§ Bullion, Currency, Money, Securities, Accounts, Bills, Deeds, Evidence of Debt, Notes, Stamps
§ Precious Metals (gold, silver, etc. in forms of ingots, bullion, coins, etc.)
§ Human remains (including ashes)
§ Medical Samples and/or biological products/diagnostic specimens, blood, blood products, plasma, embryos, human or animal specimens or tissues, urine, bodily fluids.
§ Ammunition and/or Explosives of any type
§ Counterfeit, Illegal or Pirated goods or material
§ Any item(s) the carriage of which is Excluded by any law, regulation or statute of any federal, state or local government to or through which the shipment may be carried.
Restricted Commodities
The commodities listed below are subject to certain conditions and/or circumstances that must be fulfilled:
Note: Your ability to ship the following items is governed by your individual carrier contracts.
§ Alcoholic Beverages
§ Dangerous Goods
§ Firearms
§ Industrial diamonds/carbons
§ Gems, Gemstones, Furs and statuary
§ Tobacco products; and
§ Perishable items
Shipments containing these items, when in excess of USD 5,000 must be approved by the Insurance Company with pre-approval by the Marsh program administrator, prior to shipment and subject to certain conditions and/or circumstances that must be fulfilled:
§ Jewelry
§ Artwork, Antiques and Collectibles
Special Care Commodities
The Special Care commodities listed below require extra precautions and conditions that must be fulfilled:
JEWELRY / ARTWORK, ANTIQUES AND COLLECTIBLES
§ A commercial sale receipt/invoice or Independent proof of value (replacement) must be available upon request
§ Shipments must be professionally packaged
§ Items must be received and a signature required; items cannot be left at door
PERISHABLE ITEMS
(e.g. foods, foodstuffs, items requiring temperature control, etc.)
§ Items must be packaged appropriately for transit
§ Shipments must be sent through Express Air Service
§ Items must be received and a signature required; items cannot be left at door
§ No coverage for spoilage or degradation of goods due to delays
PRESCRIPTION DRUGS
§ Items must be packaged appropriately for transit
§ Items must be received and a signature required; items cannot be left at door
PERSONAL EFFECTS (AND HOUSEHOLD GOODS)
§ Packing must be reviewed and approved by the RS store or packed by the RS store
"Left at door" Commodities
Jewelry, perishable goods and prescription medication are not to be "left at the door". The shipment must be received and signed for by the receiver.
Coverage Exclusions
Coverage terms are based on all risks of physical loss or damage to the goods, and specifically exclude loss or damage due to:
§ Inherent vice (e.g. improper packing, spoilage, degradation of goods due to delay, etc.)
§ Radioactive contamination
§ Loss or damage due to delay (lost earnings, loss of potential income, etc.)
§ Gradual deterioration (e.g. gradual wear and tear or a machine over time, rust, oxidation, discoloration, etc.)
§ Pre-existing damage
§ Interruption of business or consequential loss of any kind, such as loss of use or market for the good(s).
See the policy wording for a full list of restrictions and exclusions.
Valuating Your Goods
Valuing your goods for insurance purposes is extremely important. It identifies the full potential risk to the insurance company and allows them to forecast and analyze the risk and losses. Insurance against damage or loss is rated based on the FULL VALUE of the shipment, not the POTENTIAL damage.
If the goods are NOT insured for the full value, they may be subject to a co-insurance penalty. Co-Insurance applies if a shipment is not insured for full value then the insured may be considered a co-insurer and could assume a proportionate part of the risk and claim.
Used goods should be insured at Actual Cash Value (ACV). ACV means current depreciated value for the goods (not new replacement cost).
Upon Delivery of the Goods
We strongly recommend that all goods valued in excess of $500 be signed for by the receiver. In the event of loss, receiver will be required to attest in writing to non-delivery of the goods. Goods signed for by receiver will be considered delivered.
Upon Receiving the Goods
It is highly recommended that the receiver is advised to review the goods prior to signing a clean delivery receipt/waybill. They should always inspect the condition of the package(s), and note if there is any damage or shortage/items missing at time of delivery. In the event of loss or damage, the Insurance Company may send an independent surveyor to inspect any damage claims.
Claims Service
Claims for loss or damage to insured shipments will be processed electronically by the Insurance Company in a timely and efficient manner. It is important that upon notice of a claim from your client, the RS Store immediately sends a notice of claim to the carrier and files the claim with the insurance company through the website www.marinelineslip.com. The longer it takes to file either the notice of claim with the carrier or the claim with the Insurance Company, can have an effect on the claim recovery.
Premium and Rates
The RS Package Insurance program has two price structures; one for RS Basic Members and one for RS Premium Members. Insurance rates and minimums are shown below.
Rates are based on covering the actual value of the transaction. When you purchase “limits of liability” or “shipment value” coverage from the carriers, you must pay a minimum for items valued at more than $100, and then purchase coverage in $100 increments, so you may be paying for more coverage than you need. With RS Package Insurance, the premium you pay is a percentage of the actual value so you never over-insure a shipment.
RS Basic Member
/ RatesDomestic / 0.385%
International / 0.440%
Minimum Premium per shipment: / $2.00
Example:
For domestic shipments equal to or less than $520, the minimum premium will apply
For international shipments equal to or less than $455, the minimum premium will apply
RS Premium Member
/ RatesDomestic / 0.231%
International / 0.264%
Minimum Premium per shipment: / $1.50
Example:
For domestic shipments equal to or less than $650, the minimum premium will apply
For international shipments equal to or less than $570, the minimum premium will apply
NOTE: The minimum premium charge applies to all covered shipments.
Section Five
Frequently Asked Questions (FAQ)
The following are some of the frequently Asked Questions regarding the RS Package Insurance program and cargo insurance in general.