Coverage Assessment Checklist

I have gone through hundreds of cargo insurance claims handler jobs and this is the most requested capability:


Coverage Assessment.


This critical role is fundamental to ensuring that claims are handled efficiently and accurately.

What is Coverage Assessment?

Coverage assessment involves meticulously reviewing insurance policies to determine
-what is covered,
-ensuring compliance with policy conditions,
-and identifying potential exclusions and warranties.

Want to excel at Cargo claims? Master this skill.


Here are the recommended steps to follow:


1. Review Policy Documents:
Confirm the existence of a valid insurance policy and identify its type. Note key details such as the policy number, inception date, and expiry date.

2. Verify Coverage Terms:
Examine the insuring clause to understand what is covered. Identify specific coverage limits, sub-limits, and applicable deductibles or franchises.

3. Identify Exclusions and Warranties:
List all exclusions specified in the policy and check for any warranties or conditions precedent to liability.

4. Assess Compliance with Policy Conditions:
Ensure timely notification of claims and confirm adherence to any specific reporting or documentation requirements.

5. Examine Bill of Lading & Shipping Documents:
Review these documents for terms and conditions affecting liability. Identify any clauses that may limit or exclude liability.

6. Conduct Preliminary Loss Assessment: Obtain initial loss estimates and assess the nature and extent of the damage. Consider contributory factors such as improper packaging or inherent vice.

7. Determine Potential Causes of Loss: Identify possible causes of loss and relate them to policy coverage terms and exclusions. Determine if any external parties may share liability.

8. Evaluate Salvage and Recovery Options:
Consider the potential for salvage and assess the cost-effectiveness of recovery actions.

9. Establish Preliminary Loss Reserves: Calculate initial estimates of the loss reserve based on preliminary assessments.

10. Document and Communicate Findings: Prepare detailed reports summarizing coverage assessments and loss reserve determinations. Communicate findings to stakeholders clearly and accurately.

11. Monitor and Adjust Reserves as Necessary:
Regularly review and adjust loss reserves based on new information or developments.

Becoming proficient in coverage assessment not only makes you a valuable asset to your team but also enhances your career prospects.

The attached checklist will serve as a handy guide to help you along your journey.