Let’s break down the process so you know what to do if your equipment is damaged during shipping.
Ensure you don’t turn the driver away with the shipment. With damaged freight, refusing the shipment can seem like the best course of action, but it isn’t. Since it was your decision to refuse delivery, you may be responsible for the storage expenses incurred by the carrier while your claim is being handled.
There may also be a clause in your equipment transport insurance policy that exempts the insurer from paying if you refuse shipment delivery. Most equipment transport insurance companies will insist that you accept the shipment, document any damage using photos, or have an adjuster inspect the goods in person before paying out any claims.
Check the delivered equipment thoroughly and make notes of any discrepancies. Examine the pallet, the wrapping, and the packaging carefully; open any crates or boxes to check for damage. Locate and photograph all affected areas and items.
Accept the damaged freight and take careful notes before signing the Bill of Lading (BOL) or proof of delivery (POD) issued by the carrier. Always, always, always add notes on the BOL before signing it; otherwise, it will prove that the equipment was delivered in excellent condition, even if there are discrepancies.
Ensure you keep the freight and packaging. When a freight claim is submitted, the carrier can evaluate the damage in person and salvage the broken equipment. If they aren’t given that opportunity, the claim can be rejected, and you won’t get compensated.
The next step is to pay the freight bill since claims must be submitted with a copy of the paid freight bill. Regardless of who is at fault, your chances of getting a payout may be hurt if you do not pay the freight bill as a show of good faith.
Now you are ready to file the claim. The Carmack Amendment states that the carrier has one month from the date the claim was filed to issue an acknowledgment. A final decision must be made and delivered within the following three months. Your claim will be nullified if you submit the claim too late.
Make and keep copies of documents such as the Bill of Lading, the paid freight bill, invoice(s) showing the cost of the damaged equipment, the packing slip(s), a standard claim form, and photos showing proof of the damage. Once you have collected all these documents, place them in a marked folder and keep them in a safe, easily accessible location. The more proof you have, the more solid your claim will be.