Last updated: April 13, 2023
Extra Freight Insurance Terms and Conditions
Whether you own a small business or run a large organization, you have a lot on your plate. Having your freight insured and protected will take one less worry off your plate.
Our CSS SMARTT Shipping platform offers Extra Freight Insurance as a value-added purchase so you can have peace of mind when shipping.
Please read these terms and conditions carefully before using Our Service. Freight charges must be settled in full for claims to be processed. If the freight charges are not settled in full, all coverage and pending claim payments under the policy will be suspended until reinstated.
Claims under $50 USD will not be processed.
Extra Freight Insurance covers the invoice value of goods + cost of freight.
Insurable Amount
Your insured value must reflect 100% of the true invoice value of the goods. If the insured value is found to be less than the true value, the claim settlement may be pro-rated to a lesser amount.
Minimum insurable amount
- $50.00 USD on motor truck shipments and small package couriers/post
- $150 Deductible on claims equal to or greater than $1,000 USD.
Maximum insurable amount
- $75000.00 USD on motor truck shipments
- $25000.00 USD for small package couriers/ post
A higher insurance amount will require approval.
What Information or Documents are Required for my Extra Insurance Claim?
Fully complete all required fields on the SMARTT Shipping claim form and attach all documents related to the claim. Information/ documents required (but not limited to) are:
For Damages:
- Delivery receipt showing notation of damage.
- Photos showing damaged goods.
- Pre-shipment photos showing that the shipment was adequately packaged for shipping.
- Itemized description of damaged goods
- Itemized invoice or picking slip outlining the damaged product.
- If you are claiming for replacement, repair, or allowance (usable at a reduced dollar amount)
- Claim amount and details on how the claim amount is determined.
- Documents substantiating your claim amount.
- For replacements
- invoice value of damaged goods, or
- if you manufacture the goods, your manufacturing invoice invoice(s)
- For repairs
- Repair estimate
- Invoice(s) showing the value of damaged goods.
- For allowance
- Invoice value of damaged goods, or
- if you manufacture the goods, your manufacturing invoice.
For Shortages or Loss:
- Itemized description of shortage or missing goods
- Itemized invoice or picking slip outlining the missing goods.
- Invoice value of damaged goods showing your cost, or
- If you manufacture the goods, your manufacturing invoice, and invoice(s) showing the cost of parts.
Our claims specialist will reach out to you if there is further information or documents required for full claim submission.
Scope of Coverage
The scope of coverage is from the time the goods insured leaves the premises of the sender until delivered to the premises of the consignee and signed for by the recipient or as declared.
Input of Package Level Detail
When generating shipping labels through SMARTT Shipping via any carrier, you must declare the correct package-level details, including, but not limited to, address, weight, dimensions, and residential or out-of-area/rural location. You agree that in no event will Complete Shipping Solutions be liable to You or any User for the loss or non-delivery of a parcel resulting from any error, discrepancy, or misstatement in shipment details inputted by You or any User. Failure to provide accurate shipping information, including, but not limited to, the correct tracking or bill of lading number, cargo or package contents, Carrier, service type, packaging type, shipment origin, shipment destination, and date, all corresponding to the shipment declared, may void coverage.
Verification of Mailing
For a shipment to be covered, the shipping Carrier must verify acceptance of Your package for shipping or mailing. If a shipping label or bill of lading is printed but not scanned by the Carrier as accepted (or if there is no other proof of transfer of possession) it is deemed as having never been shipped or mailed and there is no coverage.
Signature Requirements
Signature confirmation is required on all packages equal to or greater than $1,000.00 USD regardless of account or situation. When You deselect” Signature Required” or select “ No Signature Required” for delivery by any Carrier, the Carrier’s confirmation in accordance with Your selection constitutes proof of delivery, and Coverage for such shipment will terminate upon delivery. In instances where a delivery signature is required in SMARTT Shipping, but the recipient waives the signature, Coverage for the shipment will be void. If, however, you prove that You instructed the Carrier not to allow waiver of signature, and the Carrier nevertheless waived the signature against Your instructions, coverage shall remain in force.
Recovery & Insurable Interest
To recover under the Insurance Policy, all packaging material and damaged goods must be kept in the original form as received. Packaging and damaged goods should not be disposed of or released to the Carrier before a claim is completed. Failure to comply may result in the denial of the claim due to insufficient evidence. In all applicable cases, the Insurer will rely on the determination of responsibility made by the original Carrier to assist in substantiating the loss. Any damage to a parcel that was not repaired must be made available if requested. Proof of disposal may be required for freight that has been damaged. Proof of disposal may include photos depicting the demolition of the goods that renders the goods unusable. Failure to comply may result in the denial of the claim.
Compliance with Laws and Regulations
By declaring a parcel or shipment to Complete Shipping Solutions for insurance coverage, you warrant that the shipment complies with all foreign, federal, state, and local laws, including export regulations and Customs regulations, and that no controlled substances or illicit contraband is being shipped. Losses are not reimbursable under this Agreement from the seizure or loss of illicit contraband or other controlled substance, violations of Customs regulations or Carrier rules, or items shipped to restricted persons under export control regulations.
Full Insured Value
Shipments must be 100% insured for the full replacement value (or cost value) of goods. If you fail to insure for the full replacement value (or cost value) of goods at the destination, you will only be entitled to recover the proportion of the loss as the declared value bears to the total value (replacement value or cost value) of the property shipped.
Replacement Parts
In the event of loss of or damage to any part of an insured machine or other manufactured item consisting of more than one part caused by a peril covered by this Policy, the sum recoverable shall not exceed the cost of replacement or repair of such part(s) plus labor for (re)fitting and carriage costs. Duty incurred in the provision of replacement or repaired part(s) shall also be recoverable provided that the full duty payable on the insured machine or the manufactured item is included in the amount insured. The total liability of Insurers shall in no event exceed the amount insured of the machine or manufactured item. Documentation, appraisal, invoice, and/or other proof must be provided for adjudication.
Valuation
You understand and agree that in the event of a recoverable loss, the settlement will be made as per the declared value per the memorandum documentation, appraisal, invoice, and/or other proof of value as may be applicable. Shipping and related costs will also be covered assuming they are included in the declared value.
Exclusions
The following important clauses, exclusions, terms, and conditions are intended as a summary. For the full policy wording, please contact Complete Shipping Solutions. This policy covers against all risk of physical loss and/or damage of whatsoever nature, subject to, including but not limited to, the following exclusions and conditions.
- Shipment of contraband or unlawful goods, including goods forbidden from carriage by the Carrier’s terms.
- Dangerous goods, hazardous materials, and Restricted Cargo, i.e., parcels to which special regulations and/or laws issued by national, state, and/or local governments apply, including, but not limited to, alcohol, tobacco, ammunition, and prescription medications. If you ship any dangerous good, hazardous material, or Restricted Cargo, you are responsible to ensure compliance with every applicable national, state, and/or local government regulation and/or the law; you assume all liability for any type of non-compliance.
- Loss of or damage to the Property Insured by theft, dishonesty, or deception committed by the shipper or any agent, servant, traveler, or messenger on behalf of the shipper.
- Loss of or damage to Property Insured occurring through the operation of a peril against which, at the date of such loss or damage, the Insured has affected separate insurances irrespective of whether such other insurance is liable to or does not meet such loss.
- Loss of, damage to, or breach of data or other non-tangible content.
- Electrical, electronic, and/or mechanical derangement of any kind, including loss, destruction, or damage directly occasioned by pressure waves caused by aircraft and other serial devices traveling at sonic or supersonic speeds.
- Loss of or damage to Property Insured, directly or indirectly, caused by or in consequence of war, invasion, acts of foreign enemies, hostilities (whether war be declared or not), civil war, rebellion, revolution, local, regional, national, or global pandemic, insurrection, military or usurped power, martial law or confiscation or nationalization or requisition or destruction of or damage to property by or under the order of any government or public or local authority.
- Non-performance or delay caused by labor disturbances, riots, civil authority, acts of God, or means beyond the control of the Carrier.
- Shipper and Recipient Disputes: Coverage is excluded for packages that are marked as delivered by Carrier and simultaneously being disputed by the recipient as not received. This exclusion applies for packages valued at $999.99 USD or less when signature confirmation is not elected by the shipper (shipments equal to or greater than $1,000.00 USD require signature confirmation of delivery).
- Mysterious Disappearance, excluding property that is missing, but there is no physical evidence to show what happened to it, for example, a shortage disclosed on taking inventory.
- Damage or losses of Property Insured within sealed packages absent objective physical evidence of tampering with the shipping parcel or of penetration or invasion of the shipping container or of damage in transit.
- Damage to Property Insured as a result of inadequate or unprofessional packaging.
- Loss of or damage to Property Insured caused by or resulting from confiscation, nationalization, requisition, or destruction of or damage to property by or under the order of any government or public or local authority.
- Any loss, damage, shortage, or non-arrival of any parcel and its contents addressed or labeled incorrectly.
- Loss, damage, shortage, or non-arrival of any parcel and its contents if it bears a descriptive label or packaging, such as the manufacturer packaging, that describes, or alludes to, the nature of the contents. International shipments that contain customs declarations are NOT excluded from coverage.
- For precious commodities, labels shall not make any reference to precious commodities such as gold, diamonds, jewelry, gems, silver cash, or any other word that references contents and value. For example, if shipping from (or to) Henry’s Jewelry Store, the shipper or recipient name should read as “Henry’s JS”, “HJS, or some other abbreviated version excluding the word “jewelry.” This condition shall not apply if a declaration of value or contents is required by customs or if statutory regulations require otherwise.
- Cash on delivery (C.O.D.) shipments are covered; however, Coverage does not include the returned cash/consideration following delivery of the parcel nor will Coverage include any loss of or damage to Property Insured when sent C.O.D. with the privilege of inspection by the consignee before acceptance.
Basic Exclusion
This policy does not cover:
- Ordinary leakage, ordinary loss in weight or volume, or ordinary wear and tear.
- Loss, damage, or expense :
- Attributable to willful misconduct of the Assured.
- caused by inherent vice or nature of the insured property.
- arising from insolvency or financial default of the owners, managers, charterers, or operators of the vessel.
- resulting from insufficiency or unsuitability of packing or preparation of the insured property for shipping.
- Loss of market, interruption of business, or for loss, damage, or deterioration arising from delay
- Loss or damage proximately caused by climatic or atmospheric conditions or extremes of temperature, including any losses directly caused by sweat or condensation.
Approved Commodities:
- General Merchandise
- Machinery & equipment
- Fragile/ breakable Items
- Alcohol/ spirits
- Refrigerated/ perishable cargo
- Target cargo including high end clothing & related, perfume, cosmetics & consumer electronics
- High-tech components
- Automobiles & motorcycles
- New & Used Auto Parts
- For used auto parts, photos showing goods and packaging of goods before shipping are required for adjudication of damage claims.
Commodities on Application Only:
- Paper in rolls
- Bulk commodities
- Structural steel & steel in rolls/plates
- Minerals, ores & Chemicals
- Household goods and personal effects
Excluded Commodities:
- Jewelry, fur, antiques & fine art
- Plants, flowers, fresh fruit & vegetables, meat
- Cash, bullion, bonds, treasury notes, securities, stamps, manuscripts, lottery tickets, life science, pharmaceuticals
- Smartphones, tablets, gaming consoles, televisions, and servers in racks or cabinets
- Surgical medical equipment, ultrasound machines, MRI machines
- Ammunitions, guns & firearms
Special Commodity-Specific Sub-Limits:
- Target cargo such as high-end clothing & related, perfume, cosmetics, consumer electronics, and others limited to $200,000.00 per conveyance.
- High-tech components are limited to $500,000.00 per conveyance.
- Artwork, whether fragile in nature or not, is subject to a sub-limit of $150,000.00 and must be packaged and or crated by competent and professional packages.
Deductible
All extra insurance claims settlements will be subject to a deductible amount as follows :
- $0 deductible on claim valuation less than $1,000.00 USD.
- $150.00 deductible if the value of the shipment is declared and paid for, is equal to or greater than $1,000.00 USD.
Deductibles apply as listed except where noted in special insuring terms as noted below.
- Containerized Automobiles, Motorcycles, and Similar vehicles: Containerized Automobiles, Motorcycles, and similar vehicles (12 years and newer) are insured against all risks of physical loss or damage from any external cause. Notwithstanding anything in this policy to the contrary, coverage attaches from the time the vehicle is accepted into the carrier’s possession and covers while in due course of transit until delivered to the owner or representative at the destination. No coverage is granted hereunder while the vehicle is being operated under its own power except while in the custody of the overseas carrier during loading/unloading operations. However, each claim shall be subject to a deductible of $1,000 USD for each Bill of Lading separately insured, unless such loss or damage be caused by General Average or Salvage. Used automobiles shall have pre-shipment damages noted.
- Ceramic Tile, Marble, Granite & other Similar Merchandise: Sufficiently packed to withstand the intended voyage are insured against all risk of physical loss or damage from any external cause. However, each claim shall be subject to a deductible of 5%of the insured value but with a minimum deductible of $500 for each Bill of Lading separately insured, unless the loss or damage be caused by General Average or Salvage.
- Glass, Glassware, and other similar fragile articles: Sufficiently packed to withstand the intended voyage are insured against all risk of physical loss or damage from any external cause. However, each claim shall be subject to a deductible of 5%of the insured value but with a minimum deductible of $ 500 for each Bill of Lading separately insured, unless the loss or damage be caused by General Average or Salvage.
- Wine, spirits, and liquor in bottles: Sufficiently packed to withstand the intended voyage are insured against all risk of physical loss or damage from any external cause. However, each claim shall be subject to a deductible of 1% of the insured value with a minimum deductible of $500 for each Bill of Lading separately insured, unless such loss or damage be caused by General Average or Salvage. Excluding loss of extremes in temperature.
- Bagged Goods are insured against all risks of physical loss: Loss or damage from any external cause. However, each claim resulting from bursting, tearing, breaking, or ripping of paper bags shall be subject to a deductible of 0.5% with a minimum deductible of $500 for each Bill of Lading separately insured, unless such loss or damage be caused by General Average or Salvage.
- Heated – Protect from Freezing Cargo (excludes fresh fruit/vegetables, pharmaceuticals): Against all risks of physical loss or damage from any external cause, irrespective of percentage, but excepting those risks as are excluded as follows: the risks excepted by the F.C. & S. Warranty and the S.R. & C.C. Warranty incorporated in the conditions of this policy; loss or damage due to inherent vice and/or gradual deterioration. This policy covers loss or damage due to or caused by derangement, breakdown, or malfunction of the heated machinery, equipment, facilities, or source. Freeze indicators (such as brand names TelaTemp or 3M Freeze Watch) must be deployed for use on or in the packaging and must be noted at the time of delivery by way of marking on the carrier delivery receipt that the Freeze Alarm has been triggered.
- Artwork, whether fragile in nature or not, subject to a deductible of 1% with a minimum deductible of $500: Claims for artwork must be accompanied with current valued professional appraisal and must be packaged and/or crated by competent and professional packagers that specialize in such commodities.
Changes to These Terms and Conditions
We reserve the right, at Our sole discretion, to modify or replace these Terms at any time. If a revision is material We will make reasonable efforts to provide at least 30 days’ notice prior to any new terms taking effect. What constitutes a material change will be determined at Our sole discretion.
By continuing to access or use Our Service after those revisions become effective, You agree to be bound by the revised terms. If You do not agree to the new terms, in whole or in part, please stop using Our Service.
Contact Us
If you have any questions about these Extra Freight Insurance Terms and Conditions, you can contact us:
