In a perfect world, every product would reach its destination at the right time, complete and in sound condition. But the world is not perfect, so who steps in when things do not go as planned and irregularities occur? This is where the internal organisation of the insured parties, be it shipper/consignee or freight forwarder, comes into play. Depending on the type and size of the organisation, there can be considerable differences. Direct lines of communication have a positive effect on claims management as does a clear delegation of tasks.

The stress of day-to-day operations often prevents smaller companies/insured parties from immediately dealing with the extra work involved in reporting losses or processing claims. In the event of a claim, prompt communication with the parties involved, as well as handling of documentation and providing proof of loss, are essential in order to resolve the issue and enable settlement. Furthermore, it is important in this context to hold contractual partners liable for losses in order to secure the company’s right to recovery.

Is the damage actually transport related? Where did it occur (review of transfer/interchange receipts)? Who is liable? In addition to the cause of the damage, the possibilities for loss mitigation are to be examined and implemented.

Often, the lack of accountability for claims processing within an organisation as well as poor decision-making lead to resentment and can even result in an increase in the extent of damage. The use of workflows can help staff without much experience in claims handling, as can, of course, the service and advice of insurers and/or surveyors.

It is always good to learn from one’s mistakes (or, in this case, losses). In order to do so, it helps to have established processes in place for analysing and understanding a loss. This is the only way to identify potential risks at an early stage and to be able to establish measures to prevent similar losses in the future. Organised processes and clearly-defined accountability in case of a damage event, in conjunction with effective quality management, contribute to the success of the company and ensure the quality of transport operations as well as the supply chain.

Professional handling of the situation will enable companies to retain existing commercial relationships, to successfully pursue recovery and to ensure a lasting professional image.