Seariders Brokerage Corporation
800-819-8888 or 954-764-0616
Insurance Information
Thank you for shipping with SEARIDERS™ !   We appreciate your business and want to provide the highest quality service at all times. Please be assured that while every effort is made to ensure safe delivery of your goods, sometimes loss and/or damage does occur.
Client’s Role and what you will recover if a loss should occur
Shipping by Ocean
While SEARIDERS™ arranges for the transportation of your goods, by law, it is the carrier who bears responsibility for loss or damage to your freight. The carrier’s liability for freight moving over the ocean is governed by the CARRIAGE OF GOODS BY SEA ACT (COGSA).    Under the terms of COGSA, the most you could recover from shipping lines in the event they are proven negligent is $500 for each customary freight unit (CFU). Measurement of the CFU is widely defined and vary from one container to one pallet.
COGSA is centered on the liability of the carrier. At the heart of the concept of carrier liability is the idea that the carrier is not responsible for paying claims if they did not cause or contribute to the loss.   In the event that SEARIDERS™ acts as an NVOCC and assumes carrier liability, recovery in the event of a claim is still limited by COGSA in the Bill of Lading terms and Conditions.
In an effort to better define carrier liability, Hague-Visby Rules were created to define 17 circumstances under which the carrier cannot be held liable. If a loss is caused by any of the following defenses; the ocean carrier will not pay for any part of the loss.

·         Any neglect, default of error of the carrier in navigation or of management of the ship
·         Fire
·         Act of God
·         Acts or omissions of the Shipper or Owner
·         Strikes, lockouts or labor shortage
·         Riots or civil commotions
·         Inherent Defect, quality or vice of the goods
·         Quarantine Restrictions
·         Act of War
·         Act of public enemies
·         Arrest , restrain or seizure
·         Defects not discoverable by due diligence
·         Attempting to save life or property at sea
·         Insufficient Packing
 
 
Shipping by air

Air Carriers limit their liability in a similar fashion as Ocean Carriers.   Under the Warsaw Convention/Montreal Protocol 4, carriers will pay 17SDRs (about $26) per kilogram only if it can be proven that they were negligent.   Once again the burden of proof is on the Shipper and it is often difficult to prove the carrier was at fault.
How can you protect Yourself ?
“All Risk” Shipper’s Interest coverage provides the owner of the cargo with coverage for direct physical loss or damage to the cargo without having to prove liability. If a loss occurs, you will be paid directly and any recovery possible from the carrier will be handled by our subrogation specialists.
Advantages of insuring your cargo through SEARIDERS™ policy
·         Covered losses are paid without the need to prove carrier negligence. 
·         No need to demonstrate where the loss occurred
·         Claim payments based upon insured value not weight of pieces missing/damaged or carrier’s limited liability
·         SEARIDERS™ will report and handle claims on your behalf.
Procedures
On your next shipment, if you wish to insure your shipment for “All Risk” simply advise us in the ‘SHIPPER’S LETTER OF INSTRUCTIONS” that you will complete for each shipment.   Premiums are quoted in advance and , while there is no obligation to insure your shipment, we strongly urge you to consider this valuable decision.  


When a Loss or Damage occurs...
 
 
(Scenario)
 
You are an Importer and your Customs Broker has cleared your goods for delivery but, when the goods arrive you notice that the cartons are crushed and it looks like some may have been pilfered. Or, you’re an Exporter and have just received notice from your customer that the shipment arrived damaged with pieces missing.
 
 
What do you do ?
 
EXCEPTIONS - This is the term to describe the note you should put right on the delivery receipt that the carrier wants you to sign when you pick up the shipment.   Write on the face of the delivery document the condition of the goods and get the driver or warehouse person to sign.   If your own truck picks up the cargo at the carrier’s warehouse, the “exceptions” should be written on the warehouse receipt that the warehouseman will want you or your representative to sign before releasing the goods.   GET THE DRIVER OR WAREHOUSEMAN TO SIGN HIS NAME UNDER YOUR EXCEPTION. This confirms that the representative of the warehouse or trucker has verified your allegation of damage or loss.
 
CAMERA Take pictures !   Before you unpack, take pictures of the cargo to show the condition of packaging. Take pictures throughout the process.
 
NOTIFICATION - Notify your Customs Broker, the Carrier and your insurance company.    Per bill of lading terms, you have a short period within which the carrier (the company that issued the bill of lading) must be notified that a claim exists.   You may do this with a “Preliminary Notice of Claim” in which you write a short letter, on your stationery, to the carrier advising him that the goods were delivered with damaged packaging and that a claim may exist.   Once you know the degree of loss, you can file a “formal” claim with the carrier or insurance company.
 
NOTE: If you or your vendor, have insured the cargo, the certificate of insurance will have instructions regarding the filing of claims with the insurance company.
 
TIME BAR - This is not a cocktail lounge where everyone wears a watch.   This is a term that will appear on the back of the bill of lading or air waybill that states that you must file suit within a certain length of time or the carrier can deny any liability.   Please notice, the term is “File Suit”.   Some carriers will try to keep you debating until this time has expired . Then they can legally walk away from any claim you might have. Protect yourself ! If you are getting close to the “Time Bar”, ask the carrier for a letter of extension. Most carriers are happy to oblige.
 
SURVEYS - Many carrier and/or insurance companies will require that a survey be performed by a licensed surveyor to determine the exact loss.   The usual custom is that the claimant pays for the survey and then adds that amount to the amount of the claim. Follow instructions of your insurance company or Customs Broker.
 
READ THE DOCUMENTS -   The Bill of lading and/or the air waybill have extensive writing on the back in very small print that details the rights of both parties to the “contract of carriage”.   Yes, a bill of lading is a contract so, you should read the back.
 
GETTING HELP - Your forwarder or Customs Broker should be able to assist you in filing the claim and following up with the parties involved.   They have experience, use it. In most cases, if you are a regular client, there will be little or no charge.
 
All of these suggestions are based upon the things we've seen people NOT DO and the result was non-payment and losses.   At Seariders, we handle your claims as part of our service.
 
LAST WORD INSURE YOUR MERCHANDISE !  This makes it much easier for you and the insurance company will take care of the details. Your forwarder or Customs Broker can usually arrange cargo insurance and prepare the certificate in his/her office.


This summary is provided for informational purposes. It does not grant or extend coverage. All coverage is governed by the terms and conditions set forth in the policy. SEARIDERS™ is not the insurance company. SEARIDERS™ purchases insurance for its clients. SEARIDERS™ liability is dictated by its Terms and Conditions of Service, a copy is available on this website








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