Inventory Insurance
With Shipwire, you retain ownership of your merchandise, even when it is in one of our warehouses. Our terms of service specifically limit any liability we may have in the event of inventory loss, damage or theft. If you want additional protection, Shipwire provides optional insurance coverage across the Shipwire Global Warehouse Network. Insurance is offered by Shipsurance and provided by Underwriters at Lloyds.
How is inventory insurance calculated?
Warehouse coverage is based on the total value at risk per warehouse, in any calendar month period (e.g. Nov 1 to Nov 30 inclusive). In essence this means that Shipwire covers the value of all of your goods that went through the warehouse in a given month, even if certain items are there for a very short time. If this coverage amount goes above the level you are insured for, we will automatically charge you for the difference in insurance premiums. At the beginning of every new period, Shipwire will automatically reset you to the lowest insurance coverage needed.
Example:
Assuming $100k worth of insurance coverage, a $1k deductible, and $60k worth of inventory in Shipwire warehouses on Nov 1.
On Nov 15th, you add an additional $80k worth of inventory across Shipwire warehouses, but have already sold $50k of the existing inventory. For insurance purposes, you have a total exposure of $140k ($60k + $80k), as that is the total amount you can file claims against in that calendar month (even though inventory value is now $90k). As a result, on the 15th, we would charge your account for the additional coverage needed to keep your entire inventory insured (i.e. $200k insurance coverage, the next lowest level, at the same $1k deductible)
Can I insure only a portion of my inventory?
You must insure all your inventory. It is not possible to insure only a portion of your inventory, or to elect for inventory coverage in only select warehouses.
What are the conditions of coverage?
SHIPWIRE WAREHOUSE COVERAGE
Shipwire offers warehouse coverage for your stored merchandise through their partner, Shipsurance Insurance Service. The coverage is underwritten by Underwriters at Lloyds if coverage is added to your Shipwire account at the time the inventory is received. Your purchase of inventory insurance is managed through the Shipwire.com website for coverage, the following coverage is enforced.
1. Coverage: To cover approved goods and merchandise while temporarily detained in warehouses approved herein by Underwriters. Approved goods and merchandise shall include the property of the Assured, or goods held by them in trust, or on commission, or on consignment or otherwise, or sold but not delivered or removed, or in joint account with or belonging to others, and for which the Assured may be liable in the event of loss.
Warehouse coverage shall insure against All Risks – Goods shall be insured under this endorsement subject to the same terms and conditions as applicable during transit from warehouse to warehouse, as set forth in the policy to which this endorsement is attached, except as hereinafter excluded or specifically provided for.
2. Goods Insured: In consideration of premium as set forth elsewhere herein, this Policy is hereby extended to cover goods insured while temporarily detained in warehouses approved by Underwriters subject to terms and as hereinafter provided.
To cover upon all new lawful goods and/or merchandise of every description, however, the following commodities are excluded from coverage: 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.
3. Deductible: In addition to any deductible that may apply each claim for loss or damage hereunder (separately occurring) shall be adjusted separately and from the amount of each adjusted claim, the sum of $500 or $1,000 shall be deducted depending on the rate option chosen. Claims for Earthquake, Hail, Windstorm, Hurricane or Flood shall be subject to a deductible of $100,000 each and every loss or occurrence.
4. Valuation: Commercial invoice.
5. Full Value Reporting: If the total value at risk in any one location exceeds the limit of liability provided by this insurance, the Assured shall nevertheless, as soon as known, report the full amount at risk to Underwriters and shall pay full premium thereon, in consideration of which the principle of co-insurance is waived by Underwriters.
Acceptance of such reports and premium shall not alter or increase the limit of liability of Underwriters but Underwriters shall be liable for the amount of covered loss up to but not exceeding the applicable limit of liability.
6. Perils Excluded: Underwriters shall not be liable for, nor shall this insurance cover any claims for loss, damage, or destruction of property caused by or resulting from:
a. wear and tear, gradual deterioration, dampness of atmosphere, extremes of temperature, insects, vermin, defect, corrosion, rust, inherent vice;
b. misappropriation, secretion, conversion, infidelity, or any dishonest act on the part of the Assured or the Assured’s employees.
c. mysterious disappearance, unexplained shortage or loss or shortage discovered when taking inventory at warehouses owned, leased, or controlled by the Assured;
d. delay, loss of market, loss of use;
e. mechanical derangement or breakdown caused by operation, demonstration or repairs;
f. short circuit or other electrical injury or disturbance, exclusive of lighting to electrical appliances, devices or wiring unless fire ensues and then for the loss or damage by fire only.
7. JC 2003/008D UNITED STATES TERRORISM INSURANCE ACT: Additional coverage under the US Terrorism Risk Insurance Extension Act of 2005 has been declined.
8. All the terms, condition, and exclusions of our Outbound Insurance coverage also apply to our Inventory Insurance.