Five Important Questions To Ask Before Insuring High Performance Engines And Parts.

1. Are you covered on purchases of both new and reconditioned engines and parts? Most insurance for freight is limited to only new products, unless specifically stated otherwise. Be certain that the policy being offered insures reconditioned parts. And if you ship used items, ask that they be included as well.
2. Is the coverage considered “All Risk” or are you relying on the carriers’ own insurance? Carriers often limit their liability to 50 cents per pound as stated in the fine print on their freight bill. So that $100,000 of coverage they carry may not matter. Also, the carrier’s insurance may not respond to your claim if the loss is something that is deemed outside of their control, such as a flood, tornado, hurricane, or levee break. For best protection, secure first party “all risk” cargo insurance and don’t jeopardize your financial fate on a carriers’ cargo liability insurance policy.
3. Does the insurance pay for the expensive customized performance packaging and crating? High value products require special handling, which usually means customized crating and packaging. Make sure the cost of repackaging is included in your coverage, as most cargo insurance insures only the product itself.
4. Does your coverage pay the additional costs to replace time-sensitive parts using expedited next-day delivery? Buyers of performance engines and parts usually run up against tight deadlines and schedules. A few days’ delay can mean the difference between being in or out of the race, or racing without an adequate inventory of back-up parts.
5. If you have to pay more to immediately replace a part damaged in shipping, will the insurance policy cover the additional cost? Most policies pay for Cost + Insurance + Freight + an additional 10%. In the performance world, you may have to pay an additional 30% or more to get that part in time for the race. For a high performance engine, that can add up to a lot of money.