Transportation & Logistics Council 41 st Annual T&LC Conference Cargo Insurance. Presented by: Mark Yunker, VP

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1 Transportation & Logistics Council 41 st Annual T&LC Conference Cargo Insurance Presented by: Mark Yunker, VP

2 T&LC Cargo Insurance Insurance Exclusions are the tip of the iceberg! Covered Property Defined on dec page & in policy Insuring agreement Named peril & Special Cause of Loss Exclusions Perils Property

3 T&LC Cargo Insurance Insurance Endorsements Add & Subtract & Modify Coverage Reefer Endorsements» Add temperature coverage» But only due to breakdown Evidence is Crucial» May require frequent maintenance & records Target Commodities Often Poorly Worded» Eliminate coverage» Restrict the amount of coverage» Restrict the type of coverage

4 T&LC Cargo Insurance Insurance - Carriers Independent verification is gone! FMCSA does not require any cargo insurance Certificate holders are usually not notified Check for radius restrictions Avoid scheduled driver policies Verify scheduled vehicle coverage

5 Free, open & competitive market is important Standardization may not be a good thing Insurers compete on a variety of levels and coverage should continue to be one of them

6 Terrific Policy Covered Property means lawful property of others that you have accepted for transportation Property Not Covered Live animals, insects, vermin, rodents, birds, poultry, fish or marine life Autos, vehicles, transporting vehicles, trailers or containers unless specifically described as property to be transported Accounts, bills, deeds, money, securities, checks, drafts, evidences of debt, blueprints, manuscripts, bullion, coins, precious stones, jewelry, paintings, statuary, sculptures, rare books, tapestries works of art

7 Terrific Policy Exclusions War & military, nuclear hazard Insurrection, rebellion Delay, loss of use, loss of market, loss of income, or any consequential loss Dishonest acts by you (officers, etc.). This exclusion does not apply to your employees or independent contractors. Costs, fines, penalties

8 Scheduled Driver Policies The following are insureds: You or any driver named in the policy while operating a covered vehicle with your knowledge and consent under your operating authority. No coverage will apply to any driver newly placed in service until you report that driver and we advise you in writing that the driver is acceptable. Coverage will become effective as of the date and time we advise you in writing

9 Adjuster s Statement As to status, we have not yet cleared coverage on this matter. We have a scheduled vehicle and a scheduled driver policy. We found that the tractor is indeed a covered auto. The driver, prior to this incident, had never been reported. Underwriters are now reviewing his MVR/CDL to see if he qualifies as an operator

10 Declarations Page Descriptions Description of Merchandise (Be Specific) Seafood 33% Meat 33% Poultry 33% In respect of the commodity of seafood, coverage is afforded only when seafood is frozen and packaged.

11 Target Commodities Exclusion Meat and Meat Products Alcoholic beverages Clothing, textiles, furs Corrosives Shellfish, Shell seafood, or shelled seafood Sporting goods, toys, and scooters Tires and tubes Cosmetics, drugs, medicines, medical supplies and equipment, pharmaceuticals, and perfumes.

12 Commodities Theft Limitation we will not be liable for more than 10% of the limit of insurance Radio, photographic, electronic or communications equipment, including, but not limited to, computers, computer parts, software, compact and digital discs, video tapes, video and digital games, and video and sound playing and recording equipment. Drugs and pharmaceutical products

13 Non-Ferrous Metals Exclusion The following is added to paragraph A.2., Property Not Covered: non-ferrous metal in scrap or ingot form

14 Coinsurance You must carry sufficient insurance in order to receive full payment for a loss. We will not pay you more of any loss than the percentage obtained by dividing the applicable limit of insurance as shown on the declarations page by 90% of the total value of property on the scheduled vehicle at the time of the loss. In no event, however, will our payment exceed the applicable limit of liability a shown on the declarations page.

15 TLC CARGO INSURANCE Miscellaneous Provisions It is agreed any refrigeration unit in excess of 3 years of age of manufacture date will be subject to a deductible two times the amount shown The insured is required to provide a certificate of worthiness from a certified refrigeration mechanic within 30 days of inception or within 30 days of a newly acquired or owned unit being added for coverage. It is agreed the maximum amount of liability for theft on containers originating from the Port of Long Beach is limited to $25,000 It is agreed in the event a loss is caused by the striking of any overhead obstacle the deductible shall be $2,500

16 THANK YOU