Finding appropriate coverage can be difficult for importers, but once an insurance policy is attained there’s still more importers need to know about warranties.
If you’re planning on shipping any of the following commodities, it’s best you know about the applicable coverage requirements and possible warranties. Staying on top of this information will ensure your compliance in the event of a claim.
- Goods requiring reefer coverage – Any commodity that requires refrigeration should have reefer coverage. Under this addition, any losses due to temperature fluctuation associated with machinery breakdowns will be covered. Typically these shipments will be warranted that goods are shipped in full and/or sole use reefer containers, door to door.
- Firearms – The nature of these commodities mandates appropriate packaging, and according to industry standards, firearms and ammunition should be shipped separately. Also, the importer must have all applicable licenses and permits in good order at the time of shipment, otherwise a loss will not be covered.
- Commodities prone to theft/damage – That all goods are shipped in full or sole use containers door to door, is usually required by warranty for coverage. This will ensure that you as the importer are doing everything you can to prevent theft or damage regarding the commodities.
- Large equipment, vehicles – As these goods can be difficult to move and are often not automatically covered if driven under their own power, it’s important the specific methods of transportation are well documented. In regards to domestic shipments of any oversize loads, it is typically warranted the carrying conveyance is escorted by outriders at the front and rear of the unit.
- Fireworks – All goods are shipped in accordance with IMO regulations. Warranties regarding these commodities may require documentation of compliance with these statutes in the event of a loss or claim.
- Cell Phones – To minimize theft, it is often warranted these commodities be packed in a way that doesn’t bear any description indicating the nature of the goods. In addition, all vehicles transporting the cell phones must be equipped with tracking devices. Any common carrier truck used in the cargo chain is usually required to have liability coverage in the amount of at least $100,000.
- Laptops and other consumer electronics – Similar to cell phones, these commodities must be shipped in non-descriptive packaging to be compliant with certain warranty specifications. Due to the relatively high theft rate of these goods, an importer needs to ensure discretion on packaging during the importing process.
- Scrap Metal – To maintain warranty compliance, ocean shipments are often required to be containerized. If there is a concern of rust, oxidation, or discoloration, ROD coverage will be an additional cover to consider. Theft will not be covered on inland carriers if a vehicle is at any time unattended.
Now you know a bit more about staying in compliance with warranties regarding these imported commodities. Stay tuned for more educational posts from TRG, your innovator in U.S. Customs Bonds and Marine Insurance.
