We always stress that reusable pallets and containers are assets, but are they covered by your insurance?
Chris MacGrory recently posted on this topic at the LinkedIn Reusable Packaging Association (RPA) site. One of Chris’ clients had 3,400 reusable plastic containers (RPCs) stolen. He stressed that this was not a case of mismanagement, noting that a SAP based ERP identified the individual crates being located in an on-site storage trailer, and that workers confirmed their presence the preceding day. Additionally, there was evidence of forced entry into the trailer.
The insurance company denied the claim under the facility umbrella policy because it was being stored on a trailer, which had separate coverage. The claim was subsequently denied by the policy carrier for the trailer because the policy excluded “Packaging”.
“The packaging clause was obviously intended for the packaging of product being transported such as the cardboard box transporting a case of soup,” Chris noted, “however the insurance carrier used the clause to deny coverage in this theft of capital assets. This was a painful initiation to the world of RPCs for this new application!”
How does your company, or your clients, handle the insurance issue for reusables? We would be interested in hearing more to share with readers.