Claims Information*
Premier Logistics Solutions works with our customers and advocates for the resolution of claims issues involving our partner carriers. It is critical to remember the claimant and not the carrier has the burden of proof in the claims process.
Premier Logistics is not the claimant and we are not responsible for the damage done to your freight however we will advocate for the resolution of the claim to the best of our ability.
*Information in this presentation is based on our experience and is not intended as legal counsel. Claims are regulated by federal transportation law (49 CFR, Part 370) and are matters of legal interpretation. A qualified transportation attorney is the best resource for complicated claims issues.
CRITICAL INFORMATION
We cannot file a claim until we have received all required documents (see below).
You must keep all packaging until inspection is waived or performed, including the pallet.
You must retain the damaged goods until your claim is concluded.
Concealed damage must be reported within five (5) business days of delivery. The sooner the better.
Your Premier Logistics invoice must be paid in full per federal regulations and the terms of your credit agreement.
Please click on a topic below for more detailed information.
Documents Required From Customer
Original Wholesale Invoice
A copy of all pages of the original invoice verifying the amount paid for the damaged freight, excluding any prospective profit. The original invoice must also disclose all discounts and allowances. The claimed amount cannot exceed the terms of sale.
Photographs of Damage
Pictures speak louder than words and providing photos to the carrier when filing a claim is extremely helpful but not required. Pictures of the shipment before it shipped are also helpful as well. Photos of damage are not a guarantee the carrier will settle the claim.
Repair Invoice (If Applicable)
When submitting a repair invoice, include a breakdown of hours, labor rate and materials.
Timeline
DAY 1
Claim Filed
DAY 30
Carrier has 30 days to acknowledge receipt of the claim and assign a claim number.
DAY 120
Carrier has up to 120 days to negotiate mitigate, settlement amount, approve or deny the claim.
- This is not a legal time frame though it is an example of a standard claims process.
- The claims process is usually drawn out most when documentation is not provided expeditiously or the mitigation process is delayed.
What happens if the claim is denied?
If the claim is denied, we can file a written appeal. If the claimant has additional information or evidence, it should be included.
How long do I have to file a claim?
If damage was noted on the delivery receipt, you have up to nine (9) months to file. If the damage was not noted, you have only five (5) business days to report damage to the carrier and begin the claims process.
Can Premier Logistics pay out a freight claim settlement before the carrier makes a final ruling?
No. Premier Logistics is the 3rd party on the shipment and not financially responsible for the freight damage.
What Can I Claim?
Can I file for a total loss?
Federal regulation requires mitigation of a claim (repair or discount) unless a detailed reason can be provided as to why the item is a total loss.
Can I file for freight charges are part of the claim?
Yes. However, if only a portion of the shipment is lost or damaged, any recoverable freight charges will be prorated to reflect only the lost or damaged portion.
Will the carrier reimburse for expedited or parcel replacement costs?
No.
Will the carrier reimburse for delays or customer inconveinence?
No. Carriers pay only for goods, not for time.
Misc. FAQ
What is the minimum claim amount?
Premier Logistics will not fail a claim with a value of less than $100.
Can I move the damaged freight?
If the damage is concealed, no. If the carrier requires an inspection of the freight, no. If the freight will ultimately be salvaged by the carrier, no. If the freight is moved under any of these circumstances, Premier Logistics cannot file a freight claim. The only circumstances where it's permissible to move damaged freight is if it can be repaired or sold at a discount to mitigate the claim.
If I moved the freight prior to inspection, what happens?
Premier Logistics cannot file a claim on your behalf.
The driver told me he will not wait while I inspect the freight. What should I do?
Drivers are on extremely tight timelines on their route. But they should always allow a reasonable amount of time to inspect freight. Many carriers have a policy of only allowing an external, visual inspection. Note even the smallest issue visible externally. After the driver leaves, you can perform an internal inspection and report any damage immediately. Some carriers will even send a driver back if he only left a few minutes earlier.
Can I refuse freight?
No
Carriers maintain it is the consignee’s legal obligation to make detailed notes of the damage on the delivery receipt, accept the freight and work to mitigate the damage. That is, unless the goods are worthless for their intended purposes.
Yes
Drivers and carriers do not know the intended purpose of the product you are accepting and whether or not it is a total loss. A driver cannot force you to accept freight. That said, refusing freight should be done only in extreme circumstances and will require disposition.
Disposition of Refused Freight
If you refuse freight and are the paying party, you have an obligation to provide disposition of the goods within 48 hours.
Disposition includes:
- Accept the Freight
- Return the Freight to the Shipper “Free Astray” (free astray return is subject to carrier and shipper approval).
- Request Inspection
If you do not provide disposition, the carrier will place the freight “on hand” and start charging storage.