Proper Insurance Claims Handling; Sparkling Wine Vs. Champagne

The latest in the world of insurance

Posted 2018-07-25
Having proper Legal Liability, and Errors and Omissions Insurance has become an absolute necessity in today’s uncertain and litigious business climate. That said; your coverage is only as good as the company backing it and the way in which they handle claims. It is imperative that your cover includes 1st dollar legal defense so that, in the event your company is held legally liable for damages; your insurer will start the process of defending you immediately and diligently without the application of a deductible.
Below is an example of how a recent claim was handled by the good folks at World Insurance Services and W.K. Webster, the brokers and claims handling company for the WCA FSL Program.
“A shipment of sparkling wine from Chile to France was incorrectly declared as Champagne.  French customs seized the cargo and eventually destroyed the contents with a loss of USD$83,000 to the consignee. The consignee tried to claim under his cargo insurance but was rejected under an exclusion. He, therefore, instructs a lawyer to pursue the claim.

The Freight Forwarder received a letter from the lawyer requesting reimbursement for USD$83,000 plus interest and costs.  The liability insurers/case handlers took over and settled the claim out of court and avoided any adverse commercial damage with the client.”
In reading this case it should be noted that a costly and lengthy court case was avoided. The insurers stepped in immediately and at no additional cost to the insured to begin the process of defending their client. They were able to settle out of court by reaching an agreement that was acceptable to all. This type of settlement would have been much more difficult (if not impossible) to reach for an uninsured or under-insured forwarder without a team of lawyers and insurance professionals overseeing the proceedings for them and negotiating on their behalf.
Your coverage is only as good as the claims handling process!
To learn more about the WCA Risk Managed program and how to increase your peace of mind, please send us a note at: