Insurance - Are You Adequately Insured ?

Many shippers are inadequately insured wrongly assuming that in the event of a claim the carrier whether that be a haulier, shipping line, airline or FFM Humbair will settle all claims in full.

Unfortunately shippers do find that they are under insured when it’s too late.

FFM Humbair can arrange insurance but we will only insure when instructed to do so, otherwise all business is undertaken in accordance with our terms of trading or that of the bill of landing/air waybill.

To ensure that you will not suffer financially ensure that you understand the relevant terms of trading and then take our the necessary insurance cover – preferably all risks. Make sure that the consignment is adequately packed , the weight and description are declared correctly otherwise any claim may be refused.

Insurance: Do You Have Sufficient Insurance ?

Any payment will be measured in SDRs (Special Drawing Rights). The value of any SDR varies daily and can be found in the Financial Times or Lloyds List.

In June 2001 the value of 1 SDR was 0.8474 to £1.00.

If you do not have all risks insurance then you will almost certainly be under insured.

The following chart shows what will be payable for a number of weights against the different terms of trading. This is the maximum liability and any payment will be based on the gross weight of the goods, the value of the goods or the limitation of liability, whichever is lower.
You may ask why you have to insure goods  - surely they are in safe hands ?

Well, yes they are but in a normal movement an average of ten different companies, authorities and people can be involved. This in itself does present a risk of loss or damage as does shipping goes across several thousand miles or loading and unloading from aircraft or vessels.

Insuring your goods also gives you peace of mind that in the event of loss or damage you will not lose out financially. After all, you insure your home and contents without really thinking about it but the majority of people don’t even think about insuring goods with similar or higher values wrongly assuming the airline or shipping line will cover any loss or damage.

All claims will be limited under the relevant terms so it is important that you are fully insured preferably with all risks marine insurance, available from FFM Humbair.

It is also important to understand what you can claim for as this is often misunderstood.

You cannot claim for:-

• Consequential loss or loss of profits/business.
• Consequences of delay, change of routing or deviation.
• Unless agreed in writing you cannot claim for delays.

Your claim may be refused if:-

• The consignment has not been adequately packed.
• Is described as something different to the actual contents.
• The weight and/or cube has been misdeclared.
• A clean delivery receipt has been obtained.

Where loss or damage is caused by Force Majeure (strike, lockout, stoppage or any other cause or matter, the consequence if which FFM Humbair is unable to avoid by the exercise of reasonable diligence.)

Am I Responsible For Insurance