Whether you are purchasing a new piece of equipment, returning it at the end of a lease, or selling it to a customer, it is important to determine who will be liable should damage occur in transit. Accidents can happen on the road as well as while the equipment is being loaded or unloaded. Lifetime Investments in Mesa, AZ knows how a damaged piece of equipment can result in a significant loss to a company if not adequately insured.
Who is Responsible if a Piece of Equipment is Damaged in Transit?
The responsibility of damage will typically fall on either the company handling the transit or the company that holds to title to the piece of equipment.
Some shipping will ask for a value of the equipment that you are shipping. They will include a fee to insure up to the amount you complete on the bill of lading. If the equipment is damaged while in transit due to traffic accident or theft, the company will cover you up to the amount you are insured. If the freight company does not include coverage in their price, they will ask you to provide a certificate of coverage. For companies such as UPS and FedEx, they only include up to $100 of coverage unless you insure it for an additional value for an added expense.
If your freight company does not provide insurance coverage, the cost for damage will fall to the title holder at the time that the piece of equipment becomes damaged. This should be established before shipping so that the company who owns it can be sure to have proper coverage on it.
For example, if you are returning a leased piece of equipment and your lease does not end until the equipment is received, the leasing company is the title owner, and you are just the lessee so their insurance would typically cover the piece unless your contract specifies otherwise. If you sell a piece of equipment and you have accepted payment and transferred the title to the new owner, you will want to make sure that they have coverage in place on it before it is shipped.
If you want to know whether or not your equipment will be properly covered in transit or to find out more about equipment coverage, contact the skilled agents at Lifetime Investments in Mesa, AZ today for more information or to get a commercial business quote.