When would I need to purchase Transit Risk Insurance?

DOMESTIC:
Risk Management no longer requires prior approval to insure all domestic orders exceeding $100,000.  The entire amount of a purchase exceeding $100,000 can be covered by the UC's insurance during transit, but a conversation should be held with Risk Managment for each purchase to address the shipment details, and to allow Risk to provide further recommendations. For example, Risk might recommed that a receipt signature be required, rather than FedEx/UPS "dropping" the box off at a door.

Procurement will work with your department on international purchases, and domestic purchases exceeding $100,000 to ensure Risk Management is roped in. A proactive approach is appreciated, however, by including a copy of an email between your department and Risk with the determination. Questions about Transit Risk Insuance can be sent to lee.mudrick@ehs.ucsb.edu, or call 893-2860.

INTERNATIONAL:
For international orders, if the vendor is paying for all transportation and insurance charges, AND is the Importer on Record through Customs, then the department does not need to apply for transit risk insurance. If, however, the UC is paying for all transportation charges, AND your purchase exceeds $1,000.00, then your department will need to apply for Transit Risk Insurance: http://www.ehs.ucsb.edu/files/docs/rm/ApplicForeignTransInsur.pdf (Note, there is a $1,000 deductible on claims.)
 

 

 

Unit or Topic: 

Procurement Services