Throughout this policy the following definitions apply:
(“DSI”): The insurance agent - Discount Shipping Insurance Agency
(“Insured”): The insured is the entity that purchased insurance through the Shipwire.com website.
(“Shipping Carrier”): The company that is transporting the shipments covered by this policy.
(“Small Parcel Carrier”): Includes DHL, FedEx, UPS, the USPS, or other small parcel carrier services.
(“Heavy Freight Carrier/Common Carrier”): Includes UPS Freight, FedEx Freight, DHL Danzas, or other air freight, LTL/motor freight, van line, or ocean vessel.
(“Total Declared Value”) or (“TDV”): The total value of the item(s) declared for insurance coverage. Includes the Shipping Carrier provided coverage, if any.

All shipments that are covered by this policy MUST abide by the rules and regulations set forth by the Shipping Carrier.

All shipped goods must abide by the Shipping Carriers’ packaging rules and regulations.

Deductible

• If a deductible exists, it will be deducted from the total claim amount.
• Deductibles are on a per package basis.
• The Insured is responsible for collecting any amounts from the Shipping Carrier that the Shipping Carrier may be liable for.
• Claims will be paid net of Shipping Carrier’s per package limitation.

Valuation

• DSI shall be liable for the invoice value of property lost, destroyed or damaged plus accrued expenses.
• If there is no invoice or sales receipt, or the provided invoice or sales receipt has been issued more than 90 calendar days from the date of shipment, DSI shall be liable for the actual cash value of the property at destination on date of loss, less any saved charges which would have become payable upon delivery at destination.
• If the goods have been sold, DSI shall be liable for the insured’s selling price including any prepaid or advanced freight.
• Used goods, merchandise, and machinery insured under this policy shall be valued at the actual cost to The Insured to replace same with an item of like kind and quality, but if not replaced, then at the actual cash value of the item.
• In no event shall claims exceed the value declared prior to shipment and declared for premium purposes.

Co-Insurance

• Item(s) or shipment must be insured for its full value. If it is not, during claim settlement, a co-insurance penalty will be incurred. The following formula will be used: The TDV, divided by the full value of the item(s), times the lesser of the repair expense amount of the claim or the total loss amount.

Other Insurance

• DSI is not responsible for any loss, damage, or shortage that is covered by another insurance policy.
  • If other insurance is present on a shipment, DSI only provides the excess coverage.

Claims

• The Insured or the consignee must retain all packaging material and damaged goods in its original form as received. Packaging and damaged goods should not be disposed of or released to the shipping carrier before a claim is completed as photographs will be required. Failure to comply can result in the denial of the claim due to insufficient packing.
• Concealed Damage – Allows for the discovery of loss or damage up to 30 days after final delivery. The loss is deemed to have possibly occurred during the insured transit. Discovery of loss or damage occurring 31 days or later after final delivery is deemed to have occurred while the shipment was NOT in transit, and therefore, is not covered.
  
• Small Parcel Claims (Shipments sent via USPS or FedEx)
  • If the shipment is sent via DHL, FedEx, UPS or any other shipping carrier that DOES include carrier provided coverage (shipping carrier liability), the Insured will file a notice of non-delivery, damage, or shortage with the Shipping Carrier for the carrier provided coverage within thirty (30) calendar days from the date of shipment. The Insured will complete a DSI claim form and provide all required documents to DSI within sixty (60) calendar days from the date of shipment. If the carrier has liability and their remittance (carrier’s claim check and stub) or response has not been received by the Insured within the 60 day timeframe, all other claim paperwork must be received by DSI within sixty (60) calendar days from the date of shipment . The copy of the carrier remittance and/or response must be received by DSI within thirty (30) calendar days from the date on the carrier remittance and/or response. A complete claim submission includes a DSI claim form, a copy of the carrier’s tracer form, a copy of the invoice or recent appraisal, and any other documentation requested by DSI. Failure to complete the claim form and follow all claim instructions could lead to non payment of claim.
  • If the shipment is sent via the United States Postal Service (USPS), or any other shipping carrier that DOES NOT include carrier provided coverage (no shipping carrier liability), complete claims must be submitted and received by DSI within one hundred and twenty (120) calendar days of the shipment date. If the claim is for loss the Insured must wait 21 calendar days (Domestic shipments) or 45 calendar days (International shipments) before filing. A complete claim form must be submitted to DSI via mail, fax, website, or email. A complete claim submission includes a DSI claim form, a copy of the carrier’s tracer form, a copy of the invoice or recent appraisal, a claim statement/affidavit (DSI provided form) signed by the consignee, and any other documentation requested by DSI. Failure to complete the claim form and follow all claim instructions could lead to non payment of claim.
• Cargo Claims (Common carrier freight shipments)
  • The Insured will file a notice of non-delivery, damage, or shortage with the Shipping Carrier and with DSI within 48 hours from the date the shipment arrived at its destination. The Insured will provide all documents requested to process the claim to DSI within thirty (30) calendar days from the date of shipment. A claim submission includes a DSI claim form, a copy of the carrier’s tracer form, copy of signed delivery receipt, a copy of the invoice or recent appraisal, photos of damaged goods and packaging, and any other documentation requested by DSI to substantiate loss. If the carrier has liability and their remittance (carrier’s claim check and stub) or response has not been received by the Insured within the 30 day timeframe, all other claim paperwork must be received by DSI within thirty (30) calendar days from the date of shipment . The copy of the carrier remittance and/or response must be received by DSI within thirty (30) calendar days from the date on the carrier remittance and/or response. Failure to complete the claim form and follow all claim instructions could lead to non settlement of claim
• All damaged property that was not repaired or replaced must be made available (given) to DSI if requested.
• Once claim has been accepted and approved by DSI, prompt payment will be made to the Insured.
• DSI relies on the determination of responsibility made by the original Shipping Carrier to assist in substantiating the loss.

Claim Disputes

• This special policy shall be construed and interpreted in accordance with the laws of the State of California.
• The parties agree that any and all claims or disputes arising out of the policy or the performance of the policy shall be brought in Los Angeles County, California.

Other Provisions

• If DSI does not receive payment from Insured by the date the invoice is due, DSI reserves the right to deny any coverage retained by Insured until such invoice is paid in full (including any such interest accrued). If Insured does not pay its invoice within 15 days after it is due, DSI reserves the right to cancel its coverage of Insured entirely.
  
• If any term or condition of this policy is found to be invalid or unenforceable by any court of competent jurisdiction, the invalidity or unenforceability of any such term or condition shall not affect the validity and enforceability of the remaining terms and conditions of this policy.
  
• This Certificate constitutes the entire agreement between the parties with respect to the specific rights, duties, and obligations identified herein.Remittance of policy payment to DSI constitutes acceptance of this agreement.

Accounts, bills, currency, evidence of debt, money, checks, money orders, COD payments, coins, securities, tickets, deeds, notes, gift cards, manuscripts, documents, bullion (gold, silver & other precious metals), gemstones (loose stones), furs, neon items, hazardous material (per

UPS Hazardous Materials List), plasma televisions or monitors, LCD televisions or monitors, perishable cargo or similar property, eggs in the shell, ceramic slabs, marble slabs, granite slabs, slate slabs, stone slabs, grandfather clocks, grandmother clocks, stand-up clocks, automobiles, motorcycles, flowers, plants, seeds, guns, newsprint, tobacco, windows, plate glass, stained glass, and float glass.

*Collectible coins and antique guns (more than 100 years old) are NOT excluded.

Shipments sent to Abkhazia, Afghanistan, Algeria, Angola (including Cabinda), Armenia, Azerbaijan, Bangladesh, Barbados, Belarus, Benin, Bolivia, Brazil, Bulgaria, Burkina Faso, Burma, Burundi, Cambodia, Cameroon, Cape Verde, Central African Republic, Chad, Chechnia, Congo, Cuba, Djibouti, Dominican Republic, Ecuador, Eritrea, Ethiopia, Gabon, Georgia, Ghana, Guinea - Bissau, Indonesia, Iran, Iraq, Ivory

Coast, Jordan, Kazakhstan, Kenya, Kyrgyzstan, Liberia, Libya, Mali, Mauritania, Mexico, Morocco, Moldova, Niger, Nigeria, North Korea, OFAC Restricted Countries, Oman, Pakistan, Papua/New Guinea, Paraguay, Qatar, Russian Federation, Rwanda, Senegal, Seychelles, Sierra Leone, Slovenia, Solomon Islands, Somalia, Sudan, Sri Lanka, Sudan, Syria, Tajikistan, Tanzania, Togo, Tunisia, Turkmenistan, Uganda, Ukraine, Uzbekistan, Venezuela, Yemen, Zaire, and Zimbabwe.

Loss, damage, or shortage caused by or resulting from:
Hostile or warlike action in time of peace or war, including action hindering combating or defending against an actual, impending or expected attack, by:

• Any government or sovereign power (de jure facto), or by any authority maintaining or using military, naval or air forces
• Military, naval or air forces
• An agent of any such government power, authority or forces
• Any weapon of war employing atomic fission or radioactive force whether in time of peace or war

Rebellion, revolution, insurrection, civil war, usurped power or action taken by governmental authority in hindering, combating or defending against such an occurrence, seizure or destruction under quarantine or Customs regulations, confiscation by order of any government or public authority or risks of contraband or illegal transportation of trade.

Mechanical and Electrical Derangement – Loss of or damage due to mechanical, electrical, or electronic derangement unless there is evidence of external damage to the insured item or its packaging.

Data files and installed computer programs are not covered for erasure, corruption, or loss.

o Used Goods are not covered for scratching, denting, chipping, staining, tearing, and pre-existing conditions.

o Household Goods & Personal Effects

o Shipments valued in excess of $2,500.00 per shipment (Per Conveyance Limit of Liability).

o Loss or damage due to moths, vermin, wear and tear, and gradual deterioration.

o Loss or damage due to climatic or atmospheric conditions or extremes of temperatures.

o Consumer Packed – Breakage, scratching, denting, chipping, staining, and tearing of consumer packed goods.

o Steel Products

o Loss, damage, or expense due to rust, oxidation, corrosion, and discoloration.

o Loss, damage, or expense due to twisting, bending, or distortion unless caused by a covered peril.

o Frozen Foods

o Loss or damage due to decay, spoiling or deterioration.

o Loss or damage due to inherent vice or pre shipment condition.

1. Position contents in the center of a sturdy box and surround it by cushioning with bubble wrap, packaging peanuts, corrugated fiberboard, foam pads or molded plastic material.

2. Cushion fragile items inside one box as listed in step #1, then put that box into a larger box with 2″ to 3″ of cushioning around the inner box. Fragile items are any items that are breakable and/or contain any glass.

3. Do not exceed the weight specifications for your box.

4. Cover all sharp or protruding edges with taped corrugated panels or pads.

5. Do not wrap the outer box with paper

6. Use proper tape to seal your packaging such as pressure-sensitive plastic tape, water-activated paper tape or water-activated reinforced tape. Tape should be at least 2″ wide. Tape ALL seems and flaps. Do not use cellophane tape, masking tape, duct tape, kraft paper tape, string or rope.

7. If an item has a finish that might be damaged by adhesive labels, soiling or marking, place it in a protective container or box.

8. Items that cannot be packed into cartons (auto pipes, mufflers, tires, etc.) should have all sharp edges and protrusions wrapped.

9. Do not ship shirt boxes or chipboard retail gift boxes unless you put them inside a strong, corrugated box.

1. String Instruments:

o Arch top guitars, mandolins, and instruments with moveable bridges should have the bridges, tailpiece covers and any other parts that could come loose removed, wrapped securely and stowed.

o If your guitar has a tailpiece, put padding between it and the body

o Cushion the peg head with bubble wrap or newspaper. Top and bottom.

o Make sure the body does not move around in the case by adding bubble wrap.

o Place the case in a larger box and surround with at least 2 inches of bubble wrap or packing peanuts.

o Cover all sharp or protruding edges with taped corrugated panels or pads.

2. Jewelry and precious stones with a value of $500.00 or more must be placed in a box that is 6” x 6” x 6” or larger and sent via a shipping method with the direct signature confirmation service required.

3. Fragile/breakable items:

o Fragile/breakable items such as ceramics, china, clay, porcelain, glass, etc. with a TDV of $500.00 or more must meet one (1) of the following packaging requirements:

1. Must be double boxed (or triple boxed, etc) with a minimum of 2”-3” or cushioning surrounding the inner box. Each item must be individually protected and cushioned in the center of the inner box.

2. Must be packed using a foam-in-place or other Instapak® system.

o Items requiring crating (Fully enclosed plywood container):

o Amplifiers, artwork, framed prints, furniture, paintings, sculptures, speakers, televisions, and vases with a TDV of $2,000.00 or more.

o Contact DSI if you believe an item does not require crating.

o Skids/Pallets

o Secure cartons to the pallet with banding, shrink-wrap, stretch-wrap or breakaway adhesive. Placing a cardboard box around an item IS NOT sufficient packaging.

o Place cartons/boxes squarely on the skid with NO OVERHANG.

o When multiple boxes are put on a pallet or skid, each box must be individually labeled showing to whom and where it is to be delivered. This process will ensure delivery of all pieces should the skid be broken and the individual boxes separated.