Extra Insurance Terms & Conditions

• A video tutorial of how to book with extra insurance can be found here. 

Last updated: April 23, 2024

By completing your shipment in SMARTT Shipping with extra insurance, you agree to be bound by the terms and conditions below. These stipulations provide a summary of the insurance offered through SMARTT Shipping Technology through Complete Shipping Solutions insurance partner.

In the event of a claim, Complete Shipping Solutions will handle all claims-related procedures with the insurance company for you.

Please see the terms and conditions below:

• 1. Extra Freight Insurance Coverage
• 2. Insurable Amount
• 3. Commodities 
• 4.Deductible 
• 5. Scope of Coverage 
• 5A. Scope of Coverage (Parcel) 
• 5B. Scope of Coverage (Freight) 
• 6. Exclusions
• 7. Claims

1. Extra freight Insurance coverage 

For damage or loss, extra insurance covers replacement or repair, whichever is less. 

• Replacement: Invoice Value of Goods + Freight Charges
• Repairs: Repair Cost + Freight Charges Related to Repairs

2. Insurable amount

You have the flexibility to insure your shipment based on either the cost of goods or the sale price of goods.

Your insured value must match 100% of the true invoice value of goods. If your goods are underinsured, any potential claim settlement may be pro-rated to a lesser amount.

Minimum insurable amount:

• $50.00 USD

Maximum insurable amount:

• $75,000 USD on freight (LTL/FTL/ Ocean/Air)
• $25,000 USD for parcel (small package/ courier/post)

A higher insurance amount will require approval.

3.COMMODITIES

Pre-approved Commodities:

• Approved General Merchandise

Commodities on Application Only (Written Approval Required): 

• Automobiles, Motorcycles, Paper in Rolls, Bulk Commodities, Structural Steel, Steel in rolls/plates, Minerals/Ores/Chemicals, Gaming Consoles, Tablets, Smartphones, Televisions, Household Goods & Personal Effects.

Excluded Commodities/Cargo:

• Unless otherwise approved by the insurance company in writing, the following commodities are excluded: Plants, Flowers, Fresh Fruit/Vegetables, Meat, Cash, Bullion, Bonds, Treasury Notes, Securities, Manuscripts, Lottery Tickets, Life Sciences, Pharmaceuticals, Surgical Medical Equipment, Ultrasound Machines, MRI machines, servers in racks or cabinets, ammunitions, guns/firearm.

Special Commodity Specific Sub-Limits

• Target Cargo such as High-End Clothing & related, perfume, cosmetics, consumer electronics and other limited to $200,000 USD per conveyance.
• High Tech Components are limited to $500,000 USD per conveyance.
• Artwork, whether fragile in nature or not, subject to a sub-limit of $150,000 USD.

4.Deductible

For each claim (approved general merchandise):

$150 USD deductible for claim payouts equal to or greater than $1000 USD.

$0 deductible for claim payouts less than $1000 USD.

Please see special insuring terms below:

• Ceramic tile, marble, granite, and other similar merchandise subject to a deductible of 5% of the insured value with a minimum of $500 USD
• Glass, glassware and other similar fragile articles subject to a deductible of 5% of the insured value with a minimum of $500 USD
• Wine, spirits and liquor in bottles subject to a deductible of 1% with a minimum deductible of $500 USD
• Bagged Goods subject to a deductible of 0.5% with a minimum deductible of $500 USD
• Artwork, whether fragile in nature or not, subject to a deductible of 1% with a minimum deductible of $500 USD. (Artwork, whether fragile in nature or not, must be packaged and/or crated by competent and professional packagers that specialize in such commodities. Claims for artwork must be accompanied with current valued professional appraisal)

5. Scope of Coverage

Input of Package Level Detail

When generating shipping labels through SMARTT Shipping Technology via any Carrier, you must declare the correct package-level details, including, but not limited to, address, weight, dimensions, residential or out of area/rural location, Customs duty and/or tax liability, etc., of each shipment accurately. You agree that in no event will Complete Shipping Solutions and its insurance partner 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 input 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 mailing. This is found on the respective tracking websites of the shipping carriers. If a shipping label 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 never mailed and there is no coverage.

Adherent Labels

For insurance coverage to be in force, you must use shipping labels (or carrier provided pouches) that adhere directly to the packaging. Shipments with labels attached in other manners that can be removed or replaced may void coverage, unless required by customs person or firm or official charged with such transits OR unless specifically agreed to by Complete Shipping Solutions and its insurance partner in writing.

Signature Requirements

Signature requirements are set by Complete Shipping Solutions and will depend on the value of the shipment and/or an assessment of current risk factors. When You select “Delivery Confirmation” or no signature confirmation 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 by 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.

GPS, Security Boxes, Bags & Seal Requirement (Parcel)

For certain users, commodities and conditions, GPS Devices, tamper evident security bags and/or security boxes and seals are required for coverage or limits to apply. All users will be made aware of this requirement should it apply to them and will have instructions for use within their specific underwriting guidelines. For security boxes, each security box comes with two seals, each of which has random but unique identifying numbers on them. Users are responsible for keeping track of seal numbers used with corresponding shipments and may be required to provide this information in the event of a claim.

Recovery & Insurable Interest

To recover under the insurance policy, you must have an insurable and vested interest in the subject-matter insured at the time of the loss. 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 insurance company will rely on the determination of responsibility made by the original carrier to assist in substantiating the loss. Any damage to a shipment that was not repaired must be disposed of at the request of the insurance company. Proof of disposal may include photos depicting the demolition of goods that render the goods unusable. Failure to comply may result in the denial of claim.

Compliance with Laws and Regulations

By declaring a parcel or shipment to Complete Shipping Solution and its insurance partner for insurance coverage, you warrant that the shipment is in compliance with all foreign, federal, provincial, 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.

100% Co-Insurance Clause

Shipments must be 100% insured for the invoice value (cost of goods or sale price of goods). If you fail to insure for its full value, you will only be entitled to recover the proportion of the loss of the goods shipped. 

Pairs and Sets Clause

In the event of loss or damage to any article or articles which are part of a pair or set, the measure of loss of or damage to such article or articles shall be the proportional value that it bears to the total value of the pair or set. In no event shall such loss or damage be construed to mean total loss of the pair or set.

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, the sum recoverable shall not exceed the cost of replacement or repair of such part(s) plus labor for (re)fitting and carriage costs. The 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 the insurance company shall in no event exceed the amount insured for the machine or manufactured item. Documentation, appraisal, invoice, and/or other proof must be provided for adjudication.

5A. Scope of Coverage (Parcel)

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.

You understand and agree that in cases where the interest insured is addressed to post box addresses, this agreement extends to cover such interest whilst in transit from the post box address until finally delivered to the premises of the consignee and signed for by the recipient. In the case of drop ship transactions, the parties agree that coverage attaches from the time the goods insured leaves the shipping location until safely delivered to its intended destination.

Notwithstanding anything contained herein to the contrary, the parties agree that this agreement includes transit from the sender’s premises and to the consignee’s premises on route to or from the post office or airways office and transit to or from and whilst on the premises of any Government department or official or semi-official body or organization or any other organization, firm or person, through which the insured interest has to pass by virtue of any regulation or trade custom; such transit may be in charge of the sender or the consignee or the insured or the servants, agents or brokers of the latter three, or any person or firm or official charged with such transits.

Unmanned Collection Points

Packages dropped off for collection at unmanned collection points will not be covered. For packages shipped to unmanned collection points, coverage ceases upon delivery scan. Examples of Unmanned Collection Points include UPS Dropbox, USPS Dropbox, DHL Dropbox, FedEx Dropbox, Amazon Lockers and similar locations.

Non-Official Carrier Branded Locations

For packages shipped to or from Non-Official Carrier Branded Locations, Coverage is limited to $1,000 USD per package unless otherwise agreed to in writing.

Warehouses & Trade Shows

For shipments delivered to warehouses such as but not limited to Amazon, Costco, Walmart as bulk OR tradeshow locations, coverage will terminate once shipment is delivered, regardless of if proof of delivery is received or not.

Staffed Locations

Shipments that are shipped to hotels, apartment complexes or commercial buildings with staffed lobby or community mailboxes are deemed delivered when a signature is received from any of the representatives of that location.

Goods Insured

The goods insured is principally but not limited to cash, jewelry, valuable papers, precious metals, bullion, numismatics and all other interest in relation to the insured’s business.

Limit Per Any One Occurrence

In the event of one occurrence causing loss or damage to multiple parcels in one conveyance, the maximum limit of insurance for any one event shall not exceed $1,000,000 USD.

Valuation

You understand and agree that in the event of a recoverable loss, settlement will be made by the insurance company 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 unless a special valuation clause is implemented for a specific commodity, or as otherwise endorsed in writing. Special Trading Card Valuation applies for specific commodity of trading cards.

5B. Scope of coverage (freight)

For cargo shipments (non-small parcel), including conveyances by Less than a Truck Load, Full Truck Load, ocean and air, the following additional conditions and clauses are applicable, and shall take precedence over any other applicable conditions or clauses contained in this document.

All risks coverage subject to the warranties, conditions and exclusions of the policy as summarized below.

This insurance attaches from the time the insured goods leave the warehouse, or is delivered alongside or on board the overseas conveyance in accordance with the obligation of the assured under the terms of sale, for the commencement of transit and continues until:

• insured goods are delivered to the consignee’s or other final warehouse or place of storage at the intended destination; or
• the insured goods are delivered to any other warehouse or place of storage, whether prior to or at the intended destination, which the assured (including any shipper, assignee, consignee or claimant that has control of the insured goods at the relevant time) elects to use either:
• for storage other than in the ordinary course of transit; or
• for allocation or distribution; or
• the expiration of 60 days (30 days on air shipments) after completion of discharge from the overseas vessel (or aircraft), whichever shall first occur. In the event of delay in excess of the limits specified above arising from circumstances beyond the control of the assured, held covered at a premium to be named for an additional 30 days.

Provided the assured gives notice thereof to the company as promptly as possible but in any event prior to the expiry of the original 60-day (30 days on air shipments) period.

6. EXCLUSIONS

This policy covers against all risks 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., shipments to which special regulations and/or laws issued by national, provincial, and/or local governments apply, including, but not limited to, alcohol, tobacco, ammunition, and prescription medications. If you ship any dangerous goods, hazardous material or restricted cargo, you are responsible to ensure compliance with every applicable national, state, province and/or local government regulation and/or law; you assume all liability for any type of non-compliance; and you agree to indemnify and hold Complete Shipping Solutions and its insurance partner harmless from any type of non-compliance or liability arising from the shipment.

Loss of or damage to the goods 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 goods insured occurring through the operation of a peril against which, at the date of such loss or damage, the insured has effected separate insurances irrespective of whether or not 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 travelling at sonic or supersonic speeds.

Loss of or damage to goods 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.

Mysterious disappearance, excluding goods that are missing, but there is no physical evidence to show what happened to it, for example, a shortage disclosed on taking inventory. This includes damage or losses of goods 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 goods insured as a result of inadequate or unprofessional packaging.

Loss of or damage to goods 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 shipment and its contents addressed or labeled incorrectly.

Loss, damage, shortage, or non-arrival of any shipment 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 the precious commodities such as gold, diamonds, jewelry, gems, silver cash or any other word that references contents and value, including any reference to well-known brand names, auction houses, associations or organizations. For example, if shipping from (or to) Henry’s Jewelry Store, 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 parcel nor will Coverage include any loss of or damage to goods insured when sent C.O.D. with the privilege of inspection by the consignee before acceptance. Additionally, coverage does not include any losses occurring after a delay in delivery as a result of the consignee not being available, or business closed, during initial delivery attempt.

7. CLAIMS