Transit Insurance

Coverage Description

Transit Insurance is optional insurance available to cover University owned property or property on loan to the University during shipment. Insurance must be purchased by the unit to cover property while in transit. Property in transit is exposed to elements that may cause loss or damage. Shippers may provide insurance for a charge in addition to the shipping cost. This insurance may be costly and inadequate. The University provides a Transit Insurance program to cover property while in transit anywhere in the world, by any transportation mode including when “hand carried.” Should you choose not to purchase transit insurance, items damaged while in transit will not be covered under the University Property Insurance program.

Coverage commences when the shipment leaves the starting point and ends upon delivery to its final destination. Property must be properly packed. Damage due to accidental causes such as vehicle accident, fire, flood, windstorm and theft are insured. Loss caused by poor packing, changes in temperature, and misdelivery are not covered. Before a shipment departs, complete the Transit Insurance Information Form and send it with an Interdepartmental Order Form 62 to Risk Management. For best service, please contact us at least five days before shipment.

Enrollment

  • Ensure that the item is packed properly by a competent packer to protect the item against damage while in transit.
  • Fill out the Transit Insurance Information Form
  • For domestic shipments multiply value by .001. (Minimum; $5.00)
  • For overseas shipments multiply value by .0014. (Minimum; $5.00)
  • If shipment will be round trip, multiply the insurance premium X2.
  • Attach a completed Transit Insurance Information Form. Maintain a copy for your department file.
  • Send an Interdepartmental Order Form 62 with Transit Insurance Information Form to Risk Management.
  • Risk Management will fill in the “Account Credited” and send it to data processing.

Loss Prevention

  • Do not accept packages that have visible damage. Dents, broken cartons or tears in the packaging could be signs of damage. Shipping companies will not be responsible for any damage caused due to their error once the package is accepted. Some carriers will allow you to document damages on the delivery slip or bill of lading. You should not accept a damaged package unless there is a clear understanding with the currier that damages are documented.
  • Be sure the item is shipped using a competent shipper. For most non-fragile items, Fed-Ex, DHL or UPS are sufficient. For fragile items there are shipping companies that specialize in the care and handling of more fragile items while in transit. For a rule of thumb, do not ship an item using FedEx, DHL or UPS that cannot survive a three story drop.
  • Obtain condition reports or pictures of items before the item is shipped. Documenting the condition of the item before it is shipped ensures that pre-existing damage is noted and the cost of repair does not become the responsibility of the University.

Claim Reporting Process

If there is a loss or damage during a shipment, units must immediately report it to Risk Management. Each incident of loss or damage is subject to a deductible equal to 10% of the loss. The minimum deductible is $500 and the maximum is $2,000. Follow the guidelines for reporting losses under the Property Insurance Program.

Contact Information

Candy Walters
Risk Management Analyst
773-702-1951
cwalters@uchicago.edu
pager: 773/652-0007