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RS Package Insurance

FULL-COVERAGE PACKAGE
AND CARGO INSURANCE...
INCLUDING YOUR PROFIT!

 

Full-Coverage Package & Cargo Insurance

Properly covering your customers’ shipments for loss or damage is an integral part of the service you provide. It protects both you and your customer while representing a significant profit opportunity for your store. The best means of protecting your customers’ (and your) financial interest is to purchase full coverage package/cargo insurance.

RS Package Insurance is underwritten by Marsh, the world’s leading cargo insurance broker and risk adviser. Marsh has over 24,000 employees and provides advice and transactional capabilities to clients in over 100 countries. Through the RS Package Insurance program, Marsh is now offering full coverage package/cargo insurance to the Retail Shipping industry at highly competitive rates and with a value proposition that revolutionizes the way shipments are covered.


The best Choice For Covering Your Customers' Shipments

Purchasing “limits of liability” or “shipment value” protection from the carriers is not the same as [full package and cargo insurance]. Even if additional insurance or a declared value is requested from the carrier, certain Terms of Carriage and/or bill of lading/airway bill limitations may still apply, such as:

  • Acts of God (flood, earthquake, hurricane, tornado, etc.)
  • Act or fault of the shipper or public authorities; and rust, oxidation, or discoloration
  • Terrorism, strikes, riots, and in some jurisdictions theft by hijacking

 
RS Package Insurance provides the following:
  • The policy protects your cargo while in transit against “all risks” of physical loss or damage.
  • Shipments are insured for the full value of the shipment including all transportation costs AND your markup on the transaction, AND any packaging materials AND any packaging charges, so you are made whole. Coverage purchased through the carriers does not cover the loss of your profit.
  • Coverage includes exposures not generally covered by legal liability or shipment value protection, including perils such as Acts of God, terrorism, strikes, riots, and civil commotions.
  • Coverage includes transit by other carriers/subcontractors involved in the shipment, and provides protection from door to door, including return shipments.
  • You do not need to prove fault on the part of the carrier. This can save months of time as the claim is paid on submission of documentation, and not based on proof of fault.
  • Losses are paid quickly and efficiently.
  • Claims are resolved regardless of whether the carrier is going to pay or not.
  • RS Package Insurance Coverage premiums cost significantly less than carrier coverage, so providing full insurance to your customers not only provides superior coverage, but also represents a great new profit center for your store.
  • This program allows you to offer real insurance to your drop-off shipment customers—a genuine, need-based new approach to allow you to make significant profit from drop-off shipments.

This new program is revolutionizing package and cargo insurance for the Retail Shipping Industry. Sign up for this program today and start covering your assets the right way.


 

THE UNDERWRITER

Liberty International Underwriters (LIU), a leader in the transportation industry, underwrites the RS Package Insurance Program. LIU is licensed in the United States and Canada and are able to write ocean cargo and inland transit all over the world.

ABOUT MARSH

Marsh, a global leader in insurance broking and risk management, teams with its clients to define, design, and deliver innovative industry-specific solutions that help them protect their future and thrive. It has approximately 25,000 colleagues who collaborate to provide advice and transactional capabilities to clients in over 100 countries. Marsh Canada Limited has 1,100 employees and offices in 13 cities across Canada. Marsh is a wholly owned subsidiary of Marsh & McLennan Companies (NYSE: MMC), a global team of professional services companies offering clients advice and solutions in the areas of risk, strategy, and human capital. With 52,000 employees worldwide and annual revenue exceeding $10 billion, Marsh & McLennan Companies is also the parent company of Guy Carpenter, a global leader in providing risk and reinsurance intermediary services; Mercer, a global leader in human resource consulting and related services; and Oliver Wyman, a global leader in management consulting. Follow Marsh on Twitter @Marsh_Inc.

Full-Coverage Really Means "Full-Coverage"

Every aspect of this program is superior to “limits of liability” and “shipment value” protection offered by the carriers. Even other 3rd party insurance products don’t compete.


Coverage

The RS Package Insurance Program is designed to protect and meet your needs. Some of its coverage benefits include:

  • The policy protects your cargo against “all risks” of physical loss or damage while in transit.
  • Coverage includes exposures not generally covered by legal liability protection, including perils such as Acts of God, terrorism, strikes, riots, and civil commotions.
  • Shipments are insured for the full value of the shipment including all transportation costs and your mark-up on the transaction, so in the event of a loss you will be made whole (coverage purchased through a carrier does not cover the loss of your profit).
  • Coverage includes transit by other carriers/subcontractors involved in the shipment, and provides protection from door-to-door, including return shipments.
  • You do not need to prove fault on the part of the carrier (this can save months of time as the claim is paid on submission of documentation and not based on proof of fault).
  • The RS Package Insurance Program allows you to offer insurance to your drop-off customers—with a significant profit margin. Now, all those drop-off customers can be viewed as a real revenue stream for your store—this is a game-changer.
  • This coverage applies to DHL, FedEx, UPS, and USPS shipments, both domestically and internationally.

Insurance Pricing

The pricing on insurance offers a significant savings over the more limited legal liability coverage provided by the carriers.

The insurance pricing is based on the actual value of the goods and not on “block” pricing. Therefore the cost is exactly what it should be and not based on a range.

Rates and terms are subject to change. Certain countries may be restricted from insurance coverage. Refer to policy for a full list of restrictions and exclusions.


Claims Handling

Claims under this program are NOT dependent upon carrier approval. Other coverage mandates that the carrier approve any claims made.

Marsh, the insurance broker, has placed the RS Package Insurance program with the insurance company Liberty International Underwriters (LIU), a leader in cargo insurance and a high quality service provider. As the insurance company, LIU insures the risk and pays the claims.

Marsh and LIU work diligently to ensure that any and all claims are serviced, processed and handled quickly and efficiently. LIU claims service is client-focused, working with the RS Associate stores to deliver satisfaction to you, their customer.


Protecting Your Financial Interest

You have a vested interest in the shipment arriving safely. Loss or damage in transit has the potential to impose a financial loss and impact your client relationships. The best means of protecting all your interests is to purchase full direct damage cargo insurance through the RS Package Insurance program.

Purchasing “limits of liability” or “shipment value” protection from carriers is not the same as full coverage package insurance. Even if additional insurance or a declared value is requested from the carrier, certain Terms of Carriage and/or Bill of Lading/Airway Bill limitations may still apply, such as:

  • Acts of God (flood, earthquake, hurricane, tornado, etc.)
  • Act or fault of the shipper or public authorities; and rust, oxidation, or discoloration
  • Terrorism, strikes, riots, and in some jurisdictions theft by hijacking

Coverage Guide

Note: Failure to follow any listed conditions below may result in a claim being denied.


Limit of Liability
  • $50,000 per shipment
  • All shipments valued at $10,000 or higher must be pre-approved by the Marsh program administrator, prior to shipment.
  • Any shipment valued at $1,000 or greater MUST be sent with Signature Required for delivery in order for insurance coverage to be valid. This includes claims for loss and damage--no exceptions. Statistics show that shipments requiring a signature are handled better by delivery drivers and therefore are less likely to incur damage. 

Excluded Commodities

These commodities will not be insured UNDER ANY CIRCUMSTANCES.

  • Live Plants or Animals (including reptiles, snakes, birds, insects, etc.)
  • Bullion, Currency, Money, Securities, Accounts, Bills, Deeds, Evidence of Debt, Notes, Stamps, Gift/Phone cards/Tickets (such as Movie, Concert, Athletic event, etc.), Documents
  • Precious Metals (gold, silver, etc. in forms of ingots, bullion, coins, etc.)
  • Human remains (including ashes)
  • Medical Samples and/or biological products/diagnostic specimens, blood, blood products, plasma, embryos, human or animal specimens or tissues, urine, bodily fluids.
  • Ammunition and/or Explosives of any type
  • Counterfeit, Illegal or Pirated goods or material
  • Alcoholic Beverages
  • Dangerous Goods / Firearms
  • Industrial diamonds/carbons/ Gems, Gemstones
  • Tobacco products; and
  • Any item(s) the carriage of which is Excluded by any law, regulation or statute of any federal, state or local government to or through which the shipment may be carried.

Special Care Commodities

The Special Care commodities require extra precautions and conditions that must be fulfilled:

* Failure to use generally accepted standards and best practices for packaging including; shipping containers, cushioning materials and packaging techniques may result in claims denial for inadequate packaging.

JEWELRY / ARTWORK, ANTIQUES AND COLLECTIBLES

  • A commercial sale receipt/invoice or Independent proof of value (replacement) must be available upon request
  • Shipments must be professionally packaged *
  • Shipments valued at or over $1,000; Various photographs of the goods during the packing process and from various
    angles

FURS, STATUARY AND TAXIDERMY

  • A commercial sale receipt/invoice or Independent proof of value (replacement) must be available upon request
  • Shipments must be professionally packaged *
  • No coverage for infestation or degradation of goods due to inherent vice
  • Shipments valued at or over $1,000; Various photographs of the goods during the packing process and from various
    angles

PERISHABLE ITEMS

(e.g. foods, foodstuffs, items requiring temperature control, etc.)

  • Items must be packaged appropriately for transit *
  • Shipments must be sent through Express Air Service
  • No coverage for spoilage or degradation of goods due to delays
  • Shipments valued at or over $1,000; Various photographs of the goods during the packing process and from various
    angles

PRESCRIPTION DRUGS

  • Items must be packaged appropriately for transit *
  • Shipments valued at or over $1,000; Various photographs of the goods during the packing process and from various
    angles

PERSONAL EFFECTS (AND HOUSEHOLD GOODS)

  • A commercial sale receipt/invoice or Independent proof of value (replacement) must be available upon request
  • Packing must be reviewed and approved by the RS store or packed by the RS store *
  • Shipments valued at or over $1,000; Various photographs of the goods during the packing process and from various
    angles

ELECTRONICS
(such as TVs, Stereos, Home Theaters/Surround sound systems, Laptops, Computers, Tablets, Video Game consoles)

  • A commercial sale receipt/invoice or Independent proof of value (replacement) must be available upon request
  • Packing must be reviewed and approved by the RS store or packed by the RS store *
  • Items packed in unmarked / no advertising boxes
  • Shipments valued at or over $1,000; Various photographs of the goods during the packing process and from various
    angles

Coverage Restrictions

Coverage terms are based on all risks of physical loss or damage to the goods, and specifically exclude loss or damage due to:

  • Loss or damage due to delay
  • Inherent vice (e.g. improper packing, spoilage, degradation of goods due to delay, etc.)
  • Insufficiency or unsuitability of packing or preparation
  • Radioactive contamination
  • Loss or damage due to delay (lost earnings, loss of potential income, etc.)
  • Gradual deterioration (e.g. gradual wear and tear or a machine over time, rust, oxidation, discoloration, etc.)
  • Pre-existing damage
  • Interruption of business or consequential loss of any kind, such as loss of use or market for the good(s).

See the policy wording for a full list of restrictions and exclusions.


Valuating Your Goods

Valuing your goods for insurance purposes is extremely important. It identifies the full potential risk to the insurance company and allows them to forecast and analyze the risk and losses.

Insurance against damage or loss is rated based on the FULL VALUE of the shipment, not the POTENTIAL damage.

If the goods are NOT insured for the full value, they may be subject to a co-insurance penalty. Co-Insurance applies if a shipment is not insured for full value then the insured may be considered a co-insurer and could assume a proportionate part of the risk and claim.

Used goods should be insured at Actual Cash Value (ACV). ACV means current depreciated value for the goods (not new replacement cost).


Delivery

We strongly recommend that all goods valued in excess of $500 be signed for by the receiver. In the event of loss receiver will be required to attest in writing to non-delivery of the goods. Goods signed for by receiver will be considered delivered.

Any shipment valued at $1,000 or greater MUST be sent with Signature Required for delivery in order for insurance coverage to be valid. This includes claims for loss and damage--no exceptions. Statistics show that shipments requiring a signature are handled better by delivery drivers and therefore are less likely to incur damage. 

 


Receiving

It is highly recommended that the receiver is advised to review the goods prior to signing a clean delivery receipt/waybill. They should always inspect the condition of the package(s), and note if there is any damage or shortage/items missing at time of delivery. In the event of loss or damage, an inspection of the shipment including the packaging may be required.


Claims Service

Claims for loss or damage to insured shipments will be processed electronically by Liberty International Underwriters in a timely and efficient manner.


Rates & Minimums

The RS Package Insurance is priced very aggressively (see the Carrier Comparison below) and positions RS Members to not only provide superior coverage, but as a profit center it also helps to earn thousands of extra dollars every year.

The program has two price structures; one for High-Risk (Non-Certified) customers and one for Low-Risk (Certified) customers. New applicants will be initially assigned to the Low-Risk (Certified) pricing. Any customer that is deemed to be high-risk (based on claims history) is subject to be moved to High-Risk (Non-Certified) pricing.

Insurance rates and minimums are shown below.

Note: Rates are based on covering the full value of the transaction (contents and all shipping, packaging and labor costs—including your profit). When you purchase “limits of liability” or “shipment value” coverage from the carriers or other 3rd party insurers, you must pay a minimum for items valued at more than $100, and then purchase coverage in $100 increments, so you may be paying for more coverage than you need, and still not protecting your own interests. With RS Package Insurance, the premium you pay is a percentage of the actual value so you never over-insure a shipment. (Note: minimum premium does apply to all shipments—see below.)


Prices listed below effective 11/1/2017

CERTIFIED (Low Risk)

Domestic Premium

International Premium

Minimum Premium per Shipment:

Rates

0.357%

0.357%

$2.10

Example

For a shipment valued at $700, the insurance premium [cost] would be $2.50

For a shipment valued at $700, the insurance premium [cost] would be $2.50

Minimum premium of $2.10 for any shipment covered by RS Package insurance

 

For domestic shipments equal to or less than $588, the minimum premium will apply.
For international shipments equal to or less than $588, the minimum premium will apply

Note: The minimum premium charge applies to all covered shipments.


NON-CERTIFIED (High Risk)

Domestic Premium

International Premium

Minimum Premium per Shipment:

Rates

0.69%

0.69%

$4.25

Example

For a shipment valued at $700, the insurance premium [cost] would be $4.83

For a shipment valued at $700, the insurance premium [cost] would be $4.83

Minimum premium of $4.25 for any shipment covered by RS Package insurance.

 

For domestic shipments equal to or less than $616, the minimum premium will apply.
For international shipments equal to or less than $616, the minimum premium will apply


Carrier Comparison

FedEx

Shipments valued at $100 or less--$0. For shipments valued at more than $100, a $3.00 minimum applies. Additional coverage is sold at a rate of $1.00 per $100 value. Note: this covers ONLY the contents value and wholesale shipping cost

United Parcel Service (UPS)

Shipments valued at $100 or less--$0. For shipments valued at more than $100, a $2.70 minimum applies. Additional coverage is sold at a rate of $.90 per $100 value. Note: this covers ONLY the contents value and wholesale shipping cost

DHL Express (International Only)

Shipments with no stated declared value are covered at a rate of $11.34 per pound. Shipments needing more coverage are charged at a rate of $1.00 per $100 value with a minimum of $3.00

Getting Started is Fast and Easy

We’ve made the steps to activate RS Package Insurance in your store simple and quick:

1

You must be an RS Premium Member of RSA.

2

You must be a current PostalMate POS Software (ver. 10.5+) user. If you are not a current PostalMate user and are interested in learning more about PostalMate, click here.

 

3

Make sure you are logged in to your RSA account and then complete the form below. Follow any instructions provided to setup your system. For instructions on how to setup RS Package Insurance in PostalMate click here.

 

4

Once your RS Package Insurance account has been activated and you have set up your PostalMate system, you can begin covering your shipments.

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CLICK HERE to login in now.

Frequently Asked Questions

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RS Package Insurance Resource Files


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Insurance program underwritten by Liberty International Underwriters (LIU)

This web page is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. The information contained herein is based on sources we believe reliable, but we make no representation or warranty as to its accuracy. Marsh and RSA shall have no obligation to update this publication and shall have no liability to you or any other party arising out of this publication or any matter contained herein. Marsh makes no representation or warranty concerning the application of policy wordings or the financial condition or solvency of insurers or re-insurers. Marsh makes no assurances regarding the availability, cost, or terms of insurance coverage.

Marsh is one of the Marsh & McLennan Companies, together with Guy Carpenter, Mercer, and Oliver Wyman.

Copyright © 2012 Marsh Canada Limited and its licensors. All rights reserved. www.marsh.ca | www.marsh.com

USDG-3785 (C100307TB): 2012/07/20