Sending the wrong stock can be more than just a headache, it can also mean the loss of a sizeable sum of money due to unforeseen fines or duties. To avoid liability on more than just the basics choose Multimodal Freight Liability Insurance.
A common issue for transport specialists all over the world is paying an excess of duty or an exorbitant fine due to an error or lack of care in sorting, picking or packing stock. Nothing is more frustrating to a small company watching every dollar spent than an unnecessary cost due to an avoidable issue. This was the case for Ms Hwang, manager of a Singaporean company whose most recent delivery from Singapore to Pakistan was returned to its home port after a mistake was discovered on arrival.
“We were issued with a $20,000 US dollar fine due to a mistake in our warehouse,” explains Ms Hwang. “I was assuming all had gone well with the delivery of five pallets of electronic goods, when I received a phone call telling me that the actual quantity did not match with the delivered quantity and that the goods were being returned. My heart sank. It sank even further when I realised the size of the fine that we were liable for from customs in Pakistan.”
When looking into the issue, Ms Hwa discovered that the warehouse had picked incorrect pallets, but having sent them off in good faith, was not expecting any issues, or for the local agent to receive such a sizeable fine. Fortunately, this small error would was covered by the errors and omissions section of the Multimodal Freight Liabilty Insurance offered by Honan in conjunction with Chubb and SLA.
Amongst other benefits, which are outlined clearly here, the policy covers any and all financial loss arising from a mistake or error from the aspect of a transport specialist.
Ms Hwa’s recommendation shows the benefits of working closely with Honan and Chubb to choose the right coverage. “I can honestly say, having the broader coverage of insurance meant that our business lived to see another day. We would have struggled without this level of support. And for that, I am grateful.”
For more information, visit: www.honan.com.sg/transport-logistics-insurance