Shropshire companies urged to check the small print
Any Shropshire company that buys or sells goods that need to be moved by road, rail, sea or air must make sure they don’t risk everything by failing to check the small print.
Dave Williams, from Henshalls Insurance Brokers in Newport and Shrewsbury, said businesses often assumed hauliers or suppliers were responsible for insuring the goods being transported. “But in fact, this is not always the case and the goods may end up being under-insured which could cause real financial difficulties if there is ever a problem.”
The warning comes in the wake of a claim where a haulier was delivering £50,000 worth of machinery to a UK customer.
“The driver caused an accident en route and the equipment was totally destroyed, but the haulier did not have enough cover in place and so the machinery supplier was left with an uninsured loss of £47,400. This was despite the haulier complying with a standard limit imposed under the UK Road Haulage Association’s Conditions of Carriage – so many other hauliers could find themselves in the same position.”
Dave said problems could also occur if a company’s customer was insuring the goods. “What if your buyer is responsible for removing the goods from your premises and the cargo arrives damaged or is lost in transit? Would your customer still accept and pay for the goods?
“And how do you stand if the goods are insured by your suppliers? How much are they charging you and how much time do you have to act on a claim? In some cases there could be a window of just three days for you to discover and take action.”
Dave said one solution was to arrange marine cargo insurance, which can offer cover for a single trip or cover on an annual basis.
“Goods can be covered at all stages of the transportation process including removal from your warehouse before the transit, and while being stored elsewhere during the journey itself. Insurance can also be arranged on an ‘all-risks’ basis or for selected threats including collision, overturning or derailment of the vehicle, fumigation and concealed damage.
“Whether you’re transporting goods in the UK or abroad, you must make sure the details of your policy fit your individual needs – don’t just assume the cover is enough.”
