How To Handle Concealed Damages and Claims with LTL Shipments
The LTL industry standard is that concealed
damage must be reported to the carrier within fifteen (15) days of delivery of
the shipment in order for a claim of this type to be considered. Once
concealed damage is noticed, the carrier needs to be made aware of the
concealed damage as soon as possible. This can be done by calling the local
delivery terminal within 15 days of delivery date. Emailing the carrier is
helpful as well. The main idea here is to make sure you have and keep
documentation of where someone at the carrier was notified within the 15 day
window. Notification closer to the delivery date will increase your chances of
receiving a settlement. Please make sure to make note of the person you spoke
with, time and telephone number. Additional notes of the conversation with the
terminal may also be made for future reference if required.
Very Important: ALL packaging that went with the specific shipment must be retained for the carrier’s inspection. Failure to do this will result in total denial of the claim.
To file the actual claim, a claim form needs to be filled out with the actual true ($) damage amount. The carriers’ claim forms can typically be found on their website or by calling their customer service and asking for a copy. To get the $ amount you may consult the manufacturer and /or repair center. Proper documentation needs to be submitted with the claim form. If you are not sure of the damage amount at the time of filling out the claim you may put in the full invoice amount of the damaged unit(s). Once the claim form is completely filled out, then fax it to the carrier or submit it via their website to their claims department.
If it was submitted with the true $ amount yet to be determined, then you will need to get full assessment of repair cost. If the repair cost is less than the full invoice ($) amount, then the claim form needs to be amended to reflect the true repair cost. If this is not done the carrier will deny the claim based on their inspection and mitigation to the repair amount. If the damage is greater to repair than the invoice amount, then the carrier would be liable for that amount in the event that carrier fault was proven. It is worthy to note that with concealed damage claims where the carrier accepts liability for the damage, the carrier will typically only pay 1/3 of the amount claimed. The carrier’s stance on this is that there are 3 parties involved: the shipper, the carrier, and the consignee. The carrier will accept responsibility for 1/3 of the damage amount since it is one out of the three parties at potential fault. The shipper could have been responsible for the damage just as likely as the carrier and the consignee could have been. In extremely rare occasions there is significant evidence that the carrier is the sole responsible party for the entire damage. In this case, the carrier is liable 100%. It is important to note that each claim is investigated on its own merits and that not all concealed damage claims are paid at 1/3 even when reported within 15 days of delivery.
Very Important: ALL packaging that went with the specific shipment must be retained for the carrier’s inspection. Failure to do this will result in total denial of the claim.
To file the actual claim, a claim form needs to be filled out with the actual true ($) damage amount. The carriers’ claim forms can typically be found on their website or by calling their customer service and asking for a copy. To get the $ amount you may consult the manufacturer and /or repair center. Proper documentation needs to be submitted with the claim form. If you are not sure of the damage amount at the time of filling out the claim you may put in the full invoice amount of the damaged unit(s). Once the claim form is completely filled out, then fax it to the carrier or submit it via their website to their claims department.
If it was submitted with the true $ amount yet to be determined, then you will need to get full assessment of repair cost. If the repair cost is less than the full invoice ($) amount, then the claim form needs to be amended to reflect the true repair cost. If this is not done the carrier will deny the claim based on their inspection and mitigation to the repair amount. If the damage is greater to repair than the invoice amount, then the carrier would be liable for that amount in the event that carrier fault was proven. It is worthy to note that with concealed damage claims where the carrier accepts liability for the damage, the carrier will typically only pay 1/3 of the amount claimed. The carrier’s stance on this is that there are 3 parties involved: the shipper, the carrier, and the consignee. The carrier will accept responsibility for 1/3 of the damage amount since it is one out of the three parties at potential fault. The shipper could have been responsible for the damage just as likely as the carrier and the consignee could have been. In extremely rare occasions there is significant evidence that the carrier is the sole responsible party for the entire damage. In this case, the carrier is liable 100%. It is important to note that each claim is investigated on its own merits and that not all concealed damage claims are paid at 1/3 even when reported within 15 days of delivery.
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