TERMS AND CONDITIONS
1. Carrier Terms and Conditions: For carrier terms and conditions please refer directly to Purolator, UPS, and FedEx’s specific detailed conditions. This can be found on their individual website, see links above.
2. It is hereby understood and agreed that any fraudulent act(s) committed by the shipper/consignee or any other third party which may affect the shipper/consignee shall be deemed to be the responsibility of FlagShip’s client (whether the shipper or consignee) and such fraudulent acts cannot be used as a defense against FlagShip for the non-payment of monies owed to FlagShip for any services rendered.
3. Discounted shipping rates are exclusive to customers of FlagShip Courier Solutions; reselling discounted rates is strictly prohibited.
FLAGSHIP Terms and Conditions of In-house Premium Insurance
General Terms
- All shipments must have the Signature Required option selected.
- There should not be any reference to valuable items on any shipment documentation (i.e. shipping labels or commercial invoices) unless absolutely necessary for customs purposes. For example, if shipping a watch, the term “horological instrument” should be placed on all documentation.
- Shipments sent in envelopes or padded Paks are not eligible for the premium insurance.
- All packages must be double boxed; however, packages with a value equal or greater to $50,000 must be shipped using security boxes and seals provided by the insurance company. Please contact FlagShip customer support should you require these boxes and seals.
- All insured shipments must be dropped off at the designated courier’s main hub, otherwise claims cannot be requested. The package must either be collected by the designated courier or deposited at the main depot specified by the courier. Drop-off locations other than the courier’s main hub are not permissible for insurance coverage. This policy is in place to ensure the security and reliability of the shipping process. Any deviation from this procedure may result in a voiding of insurance coverage. We reserve the right to reject claims for packages not adhering to this policy, as they may pose an increased risk of loss or mishandling.
General Deductibles on Premium Insurance Claims
- For general approved merchandise, deductible of $150 CDN applies for each and every claim.
- Ceramic tile, marble, granite, and other similar merchandise subject to a deductible of 5% of the insured value with a minimum of $600 CDN
- Glass, glassware and other similar fragile articles subject to a deductible of 5% of the insured value with a minimum of $600 CDN
- Wine, spirits and liquor in bottles subject to a deductible of 1% with a minimum deductible of $600 CDN
- Bagged Goods subject to a deductible of 0.5% with a minimum deductible of $600 CDN
- Artwork, whether fragile in nature or not, subject to a deductible of 1% with a minimum deductible of $600 CDN.
Scope of Coverage
INPUT OF PACKAGE LEVEL DETAIL
When generating shipping labels through the FlagShip shipping system, you must declare the correct package-level details, including, but not limited to, address, weight, dimensions, residential or out of area/rural location, Customs duty and/or tax liability, etc., of each shipment accurately. You agree that in no event will FlagShip be liable to You or any User for the loss or non-delivery of a parcel resulting from any error, discrepancy, or misstatement in shipment details inputted by You or any User. Failure to provide accurate shipping information, including, but not limited to, the correct tracking or bill of lading number, cargo or package contents, Carrier, service type, packaging type, shipment origin, shipment destination, and date, all corresponding to the shipment declared, may void coverage.
VERIFICATION OF MAILING
For a package to be covered, the shipping Carrier must verify acceptance of Your package for mailing. This is found on the respective tracking websites of the shipping Carriers. If a shipping label is printed but not scanned by the Carrier as accepted (or if there is no other proof of transfer of possession) it is deemed as never been mailed and there is no coverage.
ADHERENT LABELS
For insurance coverage to be in force, you must use shipping labels (or carrier provided pouches) that adhere directly to the packaging. Shipments with labels attached in other manners that can be removed or replaced may void coverage, unless required by customs person or firm or official charged with such transits OR unless specifically agreed to by FlagShip in writing.
RECOVERY & INSURABLE INTEREST
In order to recover under the Insurance Policy, You must have an insurable interest in the subject-matter insured at the time of the loss. All packaging material and damaged goods must be kept in the original form as received. Packaging and damaged goods should not be disposed of or released to the Carrier before a claim is completed. Failure to comply may result in the denial of the claim due to insufficient evidence. In all applicable cases, the Insurer will rely on the determination of responsibility made by the original Carrier to assist in substantiating the loss. Any damage to a parcel that was not repaired must be made available to us or the Insurer, if requested.
COVERAGE LIMITS
Subject to the terms and conditions of the Insurance Policy, this insurance covers up to a certain limit per package as shown below. For packages shipped via envelopes, padded packs or any other non-rigid materials, Coverage is limited to $1,000.00 per package unless otherwise agreed to in writing by FlagShip.
Territorial Exclusion for Sanctioned Countries
Sanction Limitation and Exclusion
No (re)insurer shall be deemed to provide cover and no (re)insurer shall be liable to pay any claim or provide any benefit hereunder to the extent that the provision of such cover, payment of such claim or provision of such benefit would expose that (re)insurer to any sanction, prohibition or restriction under United Nations resolutions or the trade or economic sanctions, laws or regulations of the European Union, United Kingdom or United States of America.
Countries currently sanctioned include but are not limited to: Iran, Syria, Sudan, North Korea, Russia, Ukraine, Crimea, Cuba, Belarus, South Sudan, Democratic Republic of Congo, Somalia, Zimbabwe. List of countries is fluid & can be updated from time to time and will be reflected in the insurance information summary agreement.
TIERED BASED COUNTRY RATING
Certain users may be subject to tier-based rating on international shipments. The insurance company’s tier rating depends on the level of risk at the origin or destination country. In cases where the origin and destination countries are in different tiers, the higher rate will apply. Each year, based on loss ratio data and statistics, the insurance company revises and updates the international tier list. The current Tier List can be viewed here.
COMPLIANCE WITH LAWS AND REGULATIONS
By declaring a parcel or shipment to FlagShip for insurance coverage, You warrant that the shipment is in compliance with all foreign, federal, state, and local laws, including export regulations and Customs regulations, and that no controlled substances or illicit contraband is being shipped. Losses are not reimbursable under this Agreement from the seizure or loss of illicit contraband or other controlled substance, violations of Customs regulations or Carrier rules, or items shipped to restricted persons under export control regulations.
100% CO-INSURANCE CLAUSE
If the Assured’s customers fail to insure for the full replacement value (or cost value) of goods at destination, the Assured and/or their Customers will only be entitled to recover from the Underwriters the proportion of the loss as the declared value bears to the total value (replacement value or cost value) of the property shipped.
ACCUMULATION CLAUSE
The limits of liability expressed herein shall not apply in the event of accumulation of Shipments in one port or place during transit due to circumstances outside the Assured’s control. Underwriters agree to cover the excess amount up to the full value at risk, provided notice be given in all such cases as soon as known to the Assured, but in no event shall liability exceed double the limits of liability expressed herein.
PAIRS AND SETS CLAUSE
In the event of loss or damage to any article or articles which are part of a pair or set, the measure of loss of or damage to such article or articles shall be the proportional value that it bears to the total value of the pair or set. In no event shall such loss or damage be construed to mean total loss of the pair or set.
REPLACEMENT PARTS
In the event of loss of or damage to any part of an insured machine or other manufactured item consisting of more than one part caused by a peril covered by this Policy, the sum recoverable shall not exceed the cost of replacement or repair of such part(s) plus labor for (re)fitting and carriage costs. Duty incurred in the provision of replacement or repaired part(s) shall also be recoverable provided that the full duty payable on the insured machine or manufactured item is included in the amount insured. The total liability of Insurers shall in no event exceed the amount insured of the machine or manufactured item.
Scope of Coverage (Parcel)
COVERAGE
All parcels covered by this program will be shipped in strict accordance with all regulations of the Carrier. Coverage is only provided for shipments through commercial parcel & freight companies, including but not limited to Federal Express and UPS, unless otherwise agreed by FlagShip. You assume liability and agree to indemnify and hold FlagShip harmless with respect to any good You ship that is prohibited by the Carrier.
International coverage is also included for all carriers; however, whenever coverage provided by this policy would be in violation of any sanctioned country, such coverage shall be null and void. Please refer to territorial exclusion section for more information.
SCOPE OF COVERAGE
The scope of coverage is from the time the Property Insured leaves the premises of the sender, until delivered to the premises of the consignee and signed for by the recipient or as declared.
You understand and agree that in cases where the interest insured is addressed to Post Box addresses, this Agreement extends to cover such interest whilst in transit from the Post Box address until finally delivered to the premises of the consignee and signed for by the recipient. In the case of drop ship transactions, the Parties agree that coverage attaches from the time the Property Insured leaves the shipping location until safely delivered to its intended destination.
Notwithstanding anything contained herein to the contrary, the Parties agree that this Agreement includes transit from the sender’s premises and to the consignee’s premises on route to or from the post office or airways office and transit to or from and whilst on the premises of any Government department or official or semi-official body or organization or any other organization, firm or person, through which the insured interest has to pass by virtue of any regulation or trade custom; such transit may be in charge of the sender or the consignee or the Insured or the servants, agents or brokers of the latter three, or any person or firm or official charged with such transits.
PROPERTY INSURED (Parcel)
The Property Insured is principally but not limited to cash, jewelry, valuable papers, and all other interest in relation to the Insured’s business.
LIMIT PER ANY ONE OCCURRENCE:
In event of one occurrence causing loss or damage to multiple parcels in one conveyance, the maximum limit of insurance for any one event shall not exceed $1,000,000.00 USD.
VALUATION
You understand and agree that in the event of a recoverable loss, settlement will be made by the Insurer as per the declared value per the memorandum documentation, appraisal, invoice and/or other proof of value as may be applicable. Shipping and related costs will also be covered assuming they are included in the declared value unless a special valuation clause is implemented for a specific commodity, or as otherwise endorsed in writing.
EXCLUSIONS
The following important clauses, exclusions, terms and conditions are intended as a summary. For the full policy wording, please contact FlagShip.
This policy covers against all risks of physical loss and/or damage of whatsoever nature, subject to, including but not limited to, the following exclusions and conditions:
- Shipment of contraband or unlawful goods, including goods forbidden from carriage by the Carrier’s terms.
- Dangerous goods, hazardous materials, and Restricted Cargo, i.e., parcels to which special regulations and/or laws issued by national, state, and/or local governments apply, including, but not limited to, alcohol, tobacco, ammunition, and prescription medications. If you use FlagShip to ship any dangerous good, hazardous material or Restricted Cargo, you are responsible to ensure compliance with every applicable national, state and/or local government regulation and/or law; you assume all liability for any type of non-compliance; and you agree to indemnify and hold FlagShip harmless from any type of non-compliance or liability arising from the shipment.
- Loss of or damage to the Property Insured by theft, dishonesty or deception committed by the shipper or any agent, servant, traveler or messenger on behalf of the shipper.
- Loss of or damage to Property Insured occurring through the operation of a peril against which, at the date of such loss or damage, the Insured has effected separate insurances irrespective of whether or not such other insurance is liable to or does not meet such loss.
- Loss of, damage to, or breach of data or other non-tangible content.
- Electrical, electronic and/or mechanical derangement of any kind, including loss, destruction or damage directly occasioned by pressure waves caused by aircraft and other serial devices travelling at sonic or supersonic speeds.
- Loss of or damage to Property Insured, directly or indirectly, caused by or in consequence of war, invasion, acts of foreign enemies, hostilities (whether war be declared or not), civil war, rebellion, revolution, local, regional, national, or global pandemic, insurrection, military or usurped power, martial law or confiscation or nationalization or requisition or destruction of or damage to property by or under the order of any government or public or local authority.
- Non-performance or delay caused by labor disturbances, riots, civil authority, acts of God or means beyond the control of FlagShip or the Carrier.
- Mysterious Disappearance, excluding property that is missing, but there is no physical evidence to show what happened to it, for example, a shortage disclosed on taking inventory.
- Damage or losses of Property Insured within sealed packages absent objective physical evidence of tampering with the shipping parcel or of penetration or invasion of the shipping container or of damage in transit.
- Damage to Property Insured as a result of inadequate or unprofessional packaging.
- Loss of or damage to Property Insured caused by or resulting from confiscation, nationalization, requisition or destruction of or damage to property by or under the order of any government or public or local authority.
- Any loss, damage, shortage, or non-arrival of any parcel and its contents addressed or labeled incorrectly.
- Loss, damage, shortage, or non-arrival of any parcel and its contents if it bears a descriptive label or packaging, such as the manufacturer packaging, that describes, or alludes to, the nature of the contents. International shipments that contain customs declarations are NOT excluded from coverage.
- For precious commodities, labels shall not make any reference to the precious commodities such as gold, diamonds, jewelry, gems, silver cash or any other word that references contents and value. For example, if shipping from (or to) Henry’s Jewelry Store, shipper or recipient name should read as “Henry’s JS”, “HJS”, or some other abbreviated version excluding the word “jewelry.” This condition shall not apply if a declaration of value or contents is required by customs or if statutory regulations require otherwise.
- Cash on delivery (C.O.D.) shipments are covered; however, Coverage does not include the returned cash/consideration following delivery of parcel nor will Coverage include any loss of or damage to Property Insured when sent C.O.D. with the privilege of inspection by the consignee before acceptance. Additionally, coverage does not include any losses occurring after a delay in delivery as a result of the consignee not being available, or business closed, during initial delivery attempt.